Market risks are an everlasting element of commodities trading and physical supply. Nobody is able to avoid them totally. At EGESA, we constantly work on identifying them ahead and plan and manage them to some extent. We maintain risk management policies, processes and controls. EGESA carefully monitors the markets and their trends and determines risk policies and exposures, and applies them accordingly to needs.
EGESA applies a range of instruments to minimize the exposure in doing our business. These include:
- Hedging commodity price and foreign currency exchange rate risks;
- Insuring various operational risks including freight-related and political risks;
- Making due diligence of our planned trades before acquisition and good management after acquisition to hedge environmental risks
- Having access to sufficient working capital and funding to minimize liquidity risk
- Maintaining policies and procedures to screen counterparty relationships, fraud and regulatory risks