Tag Archives: Risk Management

Grain Risk Management – Are You Hedging or Speculating

Even the best laid plans have the ability to go awry. This is especially true in commodity markets that are known to be volatile and have a history of taking no prisoners. That’s why it is critically important that every business has plans and processes in place to protect them against hedges going awry. Consider […]

Consumer Risk Management Theory

Successful commodity risk management at consumer-packaged goods companies (CPG) tends to focus primarily on protecting margin while removing volatility, providing margin recovery, and providing predictability to the business. The way that this is traditionally accomplished is to align the companies hedging strategies and tools with brand elasticities and market conditions. This allows organizations to repeatably […]

Systematic Approach to Risk Management

Ashland Commodities Risk Indicator

The problem with most risk management and hedging programs today is that there is a lack of a defined process. Too many producers and consumers are either trying to buy the absolute top/bottom, getting nervous and buying/selling on impulses, or simply buying to a budget.  From a risk management perspective, all of these strategies will […]