We are performing daily updates; please check back soon for the full site.

Comprehensive Risk Management

  • Market Price Risk: Using a combination of futures, options, and swaps to hedge against adverse price movements.
  • Counterparty Risk: Implementing rigorous credit checks and monitoring the financial health of all trading partners.
  • Geopolitical and Regulatory Risk: Proactively analyzing and mitigating risks associated with political instability and changes in trade laws.
  • Operational Risk: Designing robust operational procedures and contingency plans to prevent disruptions in the supply chain.
  • Cybersecurity Risk: Protecting all trading platforms, data, and communications with state-of-the-art cybersecurity measures.
  • Liquidity Risk: Ensuring access to sufficient capital and credit lines to manage trading activities without interruption.
  • Credit Risk: Assessing the creditworthiness of clients and partners to minimize the risk of non-payment.
  • Physical Asset Risk: Protecting all physical commodities and assets in storage and transit with comprehensive insurance and security.
  • Environmental Risk: Managing and mitigating environmental risks, including those related to storage and transport.
  • Legal and Contractual Risk: Ensuring all contracts are meticulously drafted to protect against legal disputes.
  • Technology Failure Risk: Implementing redundant systems and backup plans to prevent losses from technological failures.
  • Stress Testing: Regularly stress-testing the trading portfolio to understand its performance under extreme market conditions.
  • Portfolio Diversification: Advising clients on diversifying their commodity portfolios to spread risk across different markets.

Based on the current geopolitical landscape and recent policy announcements, the US sanctions framework significantly impacts global commodity sales in 2025:

 

  • The US Treasury's Office of Foreign Assets Control (OFAC) has intensified restrictions on Russia's energy sector, specifically targeting major oil producers and the affiliated maritime logistics networks to suppress commodity revenue streams.

​​​​​​​

  • Compliance risk for commodity traders remains elevated due to the increased scrutiny of the shadow fleet and the potential for secondary sanctions on international actors facilitating the illicit transport of sanctioned crude oil and petroleum products.

Incoterms 2020 defines the essential responsibilities, costs, and risks for buyers and sellers in the international and domestic delivery of goods, standardizing commercial contract clauses globally. These rules, published by the International Chamber of Commerce (ICC), ensure clarity in critical activities like export clearance, carriage obligations, and the precise point of risk transfer between the two parties. A fundamental change in Incoterms 2020 was the clarification of appropriate levels of insurance coverage for the CIF (Cost, Insurance, and Freight) and CIP (Carriage and Insurance Paid To) rules, mitigating financial exposure for the cargo owner during transit. A significant structural update in Incoterms 2020 was the renaming of DAT (Delivered at Terminal) to DPU (Delivered at Place Unloaded), providing flexibility for the delivery point to be any agreed-upon location, not strictly a terminal.