Overview

Price risk is a serious concern for commodities buyers and producers alike. We therefore look at how commodity buyers or sellers can use price risk management to reduce their exposure. In this eCourse, we discuss how price risk can be identified, the different risk management strategies, and how counterparties and/or banks and other hedge providers can play a role in hedging their risks. Finally, we review the different financial derivatives for price risk management and how they should be set to comply with regulations on commodity hedging.

Objective

On completion of this course, you will be able to:
- Recall price risk
- Discuss how a risk management strategy is formed
- Recognise the methods for managing price risk
- Identify the different financial derivatives used for hedging
- Recognise how companies must comply with regulations on hedging with financial derivatives

Content

Commodities - Risk Management & Hedging
Topic 1: Price Risk
Topic 2: Risk Management
Topic 3: Hedging Instruments
Topic 4: Regulations on Hedging