Commodity risk: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson m (Spacing) |
imported>Doug Williamson (Update link.) |
||
| (5 intermediate revisions by the same user not shown) | |||
| Line 3: | Line 3: | ||
When commodities are part of a company’s core business or processes there can be exposures arising from either or both of: | When commodities are part of a company’s core business or processes there can be exposures arising from either or both of: | ||
#Price fluctuations (commodity price risk); and | |||
#Lack of availability of the commodity. | |||
Both of these risks are aspects of Commodity risk. | Both of these risks are aspects of Commodity risk. | ||
Commodity price risk - as defined above - may also arise from intentionally creating speculative positions in the physical commodity or (more commonly) related derivative instruments. | Commodity price risk - as defined above - may also arise from intentionally creating speculative positions in the physical commodity or (more commonly) related derivative instruments. | ||
== See also == | == See also == | ||
* [[Commodity ]] | * [[Commodity ]] | ||
* [[Derivative instrument]] | * [[Derivative instrument]] | ||
* [[Location basis risk]] | |||
* [[Risk]] | * [[Risk]] | ||
[[Category:Manage_risks]] | |||
Latest revision as of 20:54, 10 November 2022
Risk management.
When commodities are part of a company’s core business or processes there can be exposures arising from either or both of:
- Price fluctuations (commodity price risk); and
- Lack of availability of the commodity.
Both of these risks are aspects of Commodity risk.
Commodity price risk - as defined above - may also arise from intentionally creating speculative positions in the physical commodity or (more commonly) related derivative instruments.
