Commodity Risk Fitness: A Guide to Shaping Up Commodity Risk Management
February 25, 2014
If it were as easy as “Eat less. Exercise more.”, then we would all be in superb shape. Similarly, if a financial risk management program was as easy as “Maximize returns. Minimize risk.”, then every company would get rid of its uncertainty without decreasing profits. It’s understood that both health and fitness as well as risk management do not have an “easy button” and so discipline and structure are required to get results.
This brief guide will draw parallels between a successful fitness plan and developing a successful commodity risk management program, citing components and implications every treasury professional should consider and understand.