Trends in Commodity Risk Management Research Project Launched

Today we start a new research project – Trends in commodity risk management. Kindly sponsored by Amphora and the Nasdaq Market Technology Division, the study comprises a short survey , interviews with risk managers, and background research. Commodity trading is fraught with risks of varying types. In recent years, the number of types of risks that businesses that trade, procure, consume of use commodities have increased considerably and now include not just price or market risk but also credit, regulatory, legal, political, operational, and other forms of risk. Moreover, the software used to track commodity transactions has also evolved considerably and is often light on risk analytics. Migration to software and/or services in the cloud has also introduced a whole series of other risks around IT, application, and infrastructure security. Fraudulent activities have also been in the news in recent months and years adding further checks and balances throughout supply chains to help minimize such risks. Against this backdrop, ComTech has noted several trends that include, the development of more advanced risk analytical solutions in various areas of risk management to supplement CTRM-type risk functionality, the development of broad cross-commodity risk platforms that allow further enterprise-level assessment of risks utilizing… continue reading

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