At Estany Commodities, we understand that commodities trading and physical supply involve inherent financial, operational, and market risks. However, these risks can be planned for and managed through our sophisticated risk management systems, processes, and controls.
We apply a range of risk management tools to minimize overall exposure at any one point in time. This includes financial derivative instruments to hedge commodity price and foreign currency exchange rate risks, insurance to hedge various operational risks, due diligence before acquisition and good management after acquisition to hedge environmental risks and access to sufficient capital and funding to hedge liquidity risk. Additionally, we have strict policies and procedures to hedge counterparty relationships, fraud, and regulatory risks.
Our risk policies are determined centrally, and our exposures are analyzed daily to ensure we are prepared for potential risks. We continuously review and update our procedures to ensure our risk management processes remain effective and current. At Estany Commodities, we are committed to managing risks responsibly and effectively to protect our clients and our company.