Commodity Risk What is the state of commodity risk management in your company?

Managing commodity and fuel price risks means minimising the potential negative impact of price developments on your results and your business. You can pursue one or several objectives here:

  • Protecting the competitive position – making sure you are lagging behind
  • Protecting the margin – ensuring any price movements in a competitive market do not come at the expense of the margin
  • Locking in the budget – achieving predictable and profitable cashflows
  • Differentiating your product – distinctiveness through pricing policy
  • Stabilising costs – eliminating the most significant fluctuations
  • Eliminating surprises – preventing unexpected events hurting your business

Review of your commodity risk management

Each cooperation starts with a review. A full understanding of the actual exposure to the price fluctuations of commodities is crucial. ICC will evaluate all your contractual purchases and sales, your production capacity, your flexibility and your competitive position in order to expose all possible areas of sensitivity.

After we have mapped out your exposures, we will assess them against your current policy, your risk willingness and your objectives.

We will subsequently offer specific proposals as to how you can manage the risks in the best possible way. Naturally, we will calculate the impact of strategies in the event of consistent, declining and rising market scenarios.

Solid foundation for further optimisation

The analysis will provide you with a solid base for further optimisation of your commodity risk management. You will make decisions based on a full understanding of your positions and this will result in you being in control together with ICC.

Would you like to know more? Then contact us on +3130-8201221 or via email at [email protected]. We will respond the same day or on the following working day.

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