Commodity Risk Services

1. Commodity price risk exposure analysis

• Identify and quantify commodity risk exposure through advanced simulation models and stress testing techniques.

2. Commodity risk management strategy

• Explore financial risk management strategies through simulated impact of various options of strategies.
• Advise ‘fit-for-purpose’ commodity risk management strategies.

3. Risk governance, process and controls

• Design and implement robust governance framework, policies, processes and controls to enhance risk oversight and decision making

4. Financial instrument valuation

• Provide advisory, validation, and valuation services for financial instruments, including forwards, swaps, and options.

5. Compliance of hedging strategy

• Assess and recommend enablers for compliance against regulatory and reporting requirements for hedging activities, including validating hedge effectiveness to optimise risk mitigation strategies

6. Capability building

• Design and conduct training, and hands-on support to upskill management and employees in commodity risk management, hedge accounting, and valuation.

1. Trading exposure analysis and analytics

• Identify and quantify trading risk exposure through advanced simulation models and stress testing techniques.
• Mark-to-market, VaR, scenario modelling and stress testing

2. Strategy and operating model design

• Design operating model to establish a trading desk

3. Trading governance, process and controls

• Design and implement robust governance framework, policies, processes, limit structures and controls to enhance risk oversight and decision making

4. CTRM platform selection and advisory

• Vendor selection support (RFP preparation and evaluation process)

5. Project management office (PMO)

• End-to-end PMO services for CTRM implementation

Connect operational, commercial, and logistical decision-making to capitalise on market opportunities and manage constraints across the full value chain.

1. Integrated decision-making across operations and trading

• Integrate trading strategies with operational planning (procurement, production, logistics, inventory) to optimise decisions on a total value basis rather than desk-level P&L.
• Integrated planning and governance to align traders, operators, schedulers, and risk during normal and stressed market conditions.

2. Process, data, and systems alignment

• Standardise critical processes and define a single source of truth across trading, operations, risk, and finance.

3. Optionality and constraint management

• Identify and quantify embedded optionality in storage, processing, transport, and contracts under different price and volatility scenarios.
• Optimise trading and physical flows considering real-world constraints such as capacity, quality, logistics, regulatory, and contractual limits.

4. Enterprise-wide value realisation

• Define enterprise-level KPIs to track realised value, working capital efficiency, and return on capital across the value chain.
• Align risk appetite, decision authorities, and incentives to enterprise value creation rather than siloed trading or operational metrics.