Commodity trading and risk management
More companies are now setting up Commodity Trading Risk Management (CTRM) functions to respond to the challenges and opportunities. Traditionally companies have operated a decentralised or federated risk management, where commodity risks have been managed locally by different businesses and where the focus has been on risk transfer and avoidance. Commodity trading and risk management systems overview 3 Volatile commodity markets, pressure on profit margins and the unprecedented speed of technological progress have marked the years since the financial crisis in 2007. Commodity companies dominated S&P 500’s top 10 by market cap back then, but have