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Offerings


Whether you have an established approach
that needs some fine tuning, or you’re just starting out, we can help you on your commodities price risk management journey.

We do this in two ways...

 





 

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Offerings


Whether you have an established approach
that needs some fine tuning, or you’re just starting out, we can help you on your commodities price risk management journey.

We do this in two ways...

 





 

 

1. Develop your CPRM effectiveness

Commodity Price Risk Management

 
 

We’ll set-up or improve your approach to managing commodity volatility and enable you to make better informed buying and selling decisions.

 
 
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Whether you are starting from scratch or want to fine tune your existing capabilities, we are the experts in the US and Europe at implementing and running Commodity Price Risk Management in large organisations.

Commodity markets are volatile and dynamic, continuously peaking and troughing. So managing your exposure to those markets also needs to be continual and dynamic. We'll show you how to navigate these ups and downs, stabilise earnings, reduce costs and, most importantly, enhance profitability.

How do we do this?

We help shine a light on the commodity price risks your company faces, how well you are protected and how you can profit. The risk and the opportunity. By evaluating your current approach, we can show you where improvements can be made and then we’ll work with you to put them in place.

  • We typically work with closely with Treasury and Sourcing functions.

  • We identify and quantify the risks you face.

  • We look at your risk appetite and how it’s reflected in your risk and trading activities. 

  • We help develop your price risk management and hedging strategies.

  • We develop and put in place all essential governance and compliance.

  • We review your data and technology requirements.
  • We advise on the skill sets and culture needed to succeed.

  • We look at the commercial terms you have with your suppliers and work with you to develop the right constructs.

  • And, perhaps most importantly, we spend time making sure you and your teams understand the changes needed to ensure your commodity price risk management efforts succeed.

It’s complex - not complicated. And the results are simple:

Lower risk. Lower costs.
Greater certainty. Greater margin.

 

Talk to one of our experts to find out how CPRM can help you better manage the volatility you face:

 

 


2. AMO

Your Automated Middle Office*

 
 

AMO provides the governance and compliance you need to manage the price risk involved in buying and selling commodities, in an automated and simplified manner.

 
 

The AMO platform is purpose built by price risk experts for the sole purpose of managing the commodity price risk activities of large corporates.

  • An independent, auditable, accurate ‘single source of the truth’, allowing everyone to be on the same page.
  • To monitor and report on your risk positions, the platform reflects your agreed risk policies and appetite for risk, captures your forecasts and trading activities, and combines all this data with market prices to track, calculate and report performance. 

  • Traders have the freedom to act in a way that builds trust and encourages high performance.

  • Importantly, traders are separated from the task of managing and reporting on your risk position.

  • It encourages closer working between your treasury and procurement/ sourcing departments. Treasury gets fingertip visibility over activity, and is assured that any activity outside the agreed policies will be immediately alerted to them, enabling the situation to be remedied rapidly.

 

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Reduces your risk
AMO tracks your activity and market prices, reports on your fluctuating risk positions, and alerts the business of any price movements or trading activity that mean the agreed risk or trading policies have been breached.
 

Solves the issues of Excel
Compared to Excel the platform is fast, accurately carries out complex calculations, is immutable, deals with and stores large data sets, prevents human error, is accessible on-line, and has the highest levels of security.

Quick and easy to set-up
Compared to 3-6 months needed to implement complex commodity trading systems, AMO takes a few hours to set-up, is intuitive to use, and requires little training. It also comes at a fraction of the cost.

 


* What do we mean by 'Middle Office'?

Risk management best practice is to have a 'middle office' that is separate to your 'front office' traders. Its core purpose is to monitor, quantify and report on the company's price risk.