29.03.2019
Here is a document put together for a recent round table meeting. It outlines recommended risk controls for commodity trading businesses. It focusses largely on trade process but every item is a direct result of real problems that occurred because a certain control was missing. If you found this relevant and would like further explanation or expansion in other areas then get in contact.
A presentation document:
Commodity Risk Round Table March2019.pptx
Admin - 14:33 | Add a comment
12.03.2019
One ordinary day, I returned from a nice lunch in the summer sun to find a senior trader waiting beside my office. He looked a bit guilty.
He explained to me that he had been incorrectly marking his forward prices on certain purchase contracts to hide a loss. He insisted that he had been in a “living hell” for a while, since his position moved against him, and was “so sorry” that now, this would not only effect his future badly but also the reputation of my risk department. [Read More…]
Admin - 11:56 | Add a comment