Commodity risk: Difference between revisions

From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson
m (Category added 9/10/13)
imported>Doug Williamson
m (Spacing & replace manual numbering with Wiki numbering.)
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:


1. Price fluctuations (commodity price risk); and
#Price fluctuations (commodity price risk); and
#Lack of availability of the commodity.


2. Lack of availability of the commodity.


Both of these risks are aspects of Commodity risk.
Both of these risks are aspects of Commodity risk.
Line 16: Line 16:
* [[Risk]]
* [[Risk]]


[[Category:Commodity_Risk]]
[[Category:Manage_risks]]

Revision as of 09:12, 17 March 2014

Risk management.

When commodities are part of a company’s core business or processes there can be exposures arising from either or both of:

  1. Price fluctuations (commodity price risk); and
  2. 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.

See also