Commodity Risk Case Study

Commodity Risk Case Study

An international soft commodities trader sought to enhance their risk management framework.

  • The business was exposed to procurement supply shock and market price fluctuations between their fixed buy price and floating sale price.
  • The company had differing perspectives across the board, management and operations on how to define, measure and operationally manage procurement, as well as market price risk.
  • Their current processes to obtain and consolidate data were highly ad-hoc and dependent on one individual soon leaving the company 

Rochford Solution

  • Through workshops with management and operations, Rochford helped the company gain alignment on risk management objectives and current process gaps.
  • Rochford then developed the appropriate tools to facilitate optimal processes, aligned with a low-touch monthly operating cycle.
  • We continue to provide ongoing support and guidance in conjunction with their internal team.

Outcomes

  • The business was able to take both the consultative guidance and developed tools to manage the implementation themselves.
  • There is enhanced clarity, visibility and traceability of risks.
  • The business was able to reshape their risk management policy to align with a process they were confident is right for their business.