How well protected are you?
To take a view on how well protected you are from today’s volatile commodity markets, consider the following questions:
01 Do you know the commodity price risks you face?
02 Are the risks quantified? Is there a single view of all risks?
03 How much risk can you afford to have?
04 Are you fully aware of the financial impact of price fluctuations?
05 Do you have a consistent commodity price risk strategy?
06 How effective is your strategy?
07 How much risk premium is included in budget setting?
08 Are budgets dynamic, in line with commodity price movements?
09 Are you able to hedge financially? If so, when and why do you?
10 Are you aware of the natural hedges you have?
11 How do you limit the chance of rogue or fraudulent behaviour?
12 How prone to error is your data?