How Well Protected Are You From Volatile Commodity Prices?

Commodity price risk management is a relatively new concept for many businesses. It’s being adopted by many as a way to materially enhance profitability, and for the early adopters its seen as a source of competitive advantage. To give you a flavor of what’s involved, and to help you take a view on how well protected you are from today’s volatile commodity markets, we’ve written the following questions for you to consider: 1.) Do you know the commodity price risks you face? 2.) Are the risks quantified? Is there a single view of all risks? 3.) How much risk can you afford to have? 4.) Are you fully aware of the financial impact of price fluctuations? 5.) Do you have a consistent commodity price risk strategy? 6.) How effective is your strategy? 7.) How much risk premium is included in budget setting? 8.) Are budgets dynamic, in line with commodity price movements? 9.) Are you able to h...