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Commodity Trading and Risk Management

This document discusses services for commodity trading operations including trading operations improvement, trading platforms and IT, and back-office managed services. It provides details on how these services can optimize operations, establish effective risk management, improve workforce performance, and reduce costs while increasing predictability, flexibility, and responsiveness. The services help trading organizations identify and manage hidden risks, enhance governance, and increase revenue through more robust risk management capabilities.

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Anika Agrawal
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© Attribution Non-Commercial (BY-NC)
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Download as DOCX, PDF, TXT or read online on Scribd
173 views

Commodity Trading and Risk Management

This document discusses services for commodity trading operations including trading operations improvement, trading platforms and IT, and back-office managed services. It provides details on how these services can optimize operations, establish effective risk management, improve workforce performance, and reduce costs while increasing predictability, flexibility, and responsiveness. The services help trading organizations identify and manage hidden risks, enhance governance, and increase revenue through more robust risk management capabilities.

Uploaded by

Anika Agrawal
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Commodity Trading and Risk Management

Services for commodity trading services are grouped broadly into three offerings: Trading operations improvement Trading platforms and related IT Back-office managed services Trading operations improvement
Optimize the operating model by streamlining supply chain and asset operations Establish effective risk management capabilities for market, credit and operational risk that include policy, processes, tools and stress testing. Strengthen and more effectively integrate compliance and trading surveillance within daily operations with improved systems and tools that mitigate risks and protect against loss. Improve workforce performance, align workforce and corporate strategies, redefine the role of the human resources function and improve collaboration and knowledge management. Consolidate trading, origination and risk-control activities under a common governance structure and risk policy framework.

Trading platforms and related IT


Identify bold, value creating approaches to apply IT as a strategic asseta source of both operational excellence and competitive advantage. Develop analytics by coordinating,across the enterprise, the collection and analysis of businesscritical information by using integrated, leading-practice approaches, and intelligent systems integration, and establishing processes and governance to enable information to be accessible when needed.

Apply a holistic approach to the rationalization of applications and tools that accumulate in organizations to streamline complexity, reduce unnecessary duplication and optimize IT infrastructure. Work with organizations to optimize testing and quality processes; provide the appropriate guidance that defines and applies formal, repeatable testing techniques; and build and refine testing skills and functionality. Leverage technology to automate new approaches and processes efficiently such as exception-based processing as well as establish the necessary skills to enable the technology.

Back-office managed services


application outsourcing, industrialize application development, maintenance and support to align IT investments with an organizations strategic imperatives, and can potentially reduce costs by as much as 50 percent. Reduce costs, improve cash flow and increase predictability and flexibility. Create a more cost-effective and responsive IT infrastructure which promotes service stability and reliability, and enables rapid response to changing market and business conditions.

Services which companies achieve business value


Exceptional losses may be avoided through improved inventory management, intraday buyversus build assessments, and recognition and preparation of catastrophic risk events. Using our innovative methods, such as stress testing, we help clients identify and manage hidden risk and prepare for the future. Governance is enhanced by reduced lag time of information dissemination, compliance with risk-reporting directives and faster response to regulatory requests or changes. Profitability may be stabilized with approaches such as the use of the spot market as a strategic tool to mitigate profit margin, application of marketbased pricing, use of alternative sales channels and cleared exchanges, and effective management of liquidity risk.

More robust risk management capabilities may help increase revenue through new revenue streams, faster response to market opportunities, talent management, and better asset and supply chain optimization.

Deliver innovative yet practical solutions


a range of assets and tools help fast-track clients trading and risk management solutions, including process models, application architectures and technical infrastructures, vendor and package evaluations, rapid package selection and implementation. industry-leading processes based on extensive research and years of industry experience, and focus on the distinctive capabilities will drive sustainable value. strategic relationships with world-leading technology companies help deliver excellence to the clients in their trading operations by reducing risk and cost, and accelerating benefits.

The path to high performance in trading


The commodity trading and risk management requirements accelerator tool not only helps accelerate implementation, but also lessens the burden on traders, risk managers and operators to identify and confirm requirements. the commodity trading and risk management release planning framework to help companies divide the deployment process into manageable parts. By drawing on standardized processes and templates, we help simplify the integration of complex trading operations. approach to stress testing introduces a unique way of better understanding the interrelation and interdependence of risks in a trading portfolioparticularly the interdependence of credit and market risk.

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