Commodity Risk Management

Reduce risk exposure

Kairos Commodities offers an approach that organizations can implement and adapt for managing commodity price volatility and for reducing exposure to the financial risk associated with purchased goods and services. This approach can be used by small and large firms alike for a variety of commodities.

Risk Management Engine

Kairos Commodities' Risk Management Engine is a fully web-enabled Value-at-Risk software, which provides the opportunity to effectively managing risk exposure.

The Risk Management Engine lets users quantify a company's net exposure in one single number, through calculation of risks related to commodity purchases and currency trades, while considering the impact of the correlation between commodity and currency markets.

The tool enables clients to prioritize the risk contribution of each commodity or currency in a portfolio. Users of the tool can simulate the risk effect of entering into new contracts, and identify potential hedges.

Value

Managing commodity price risk improves the overall profitability of an organization by potentially reducing the overall prices paid for purchased goods and services, including those commodities subject to price volatility.

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European companies are challenged by commodity risk

Understanding the importance of necessary means for managing commodity price risks can allow you to sail calmly through high seas on the commodity markets. On the other hand, mitigating the significance of a comprehensive and dynamic market oriented risk management strategy can potentially amplify the already existing risks. In this article, Kairos Commodities discusses these challenges.

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