Commodity risk: Difference between revisions
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* [[Derivative instrument]] | * [[Derivative instrument]] | ||
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[[Category:Manage_risks]] | [[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.
