“Identifying and managing risks and opportunities is key to the successful delivery of our strategy”
Risk Management
We understand different types of risks are an inherent part of physical commodities trading, and actively managing these is key to the successful delivery of our strategy. Risk management is an integral part of how we work and it is built into our day to day activities.
Framework
Our Risk Management framework is designed to underpin our sustainability and helps our Board fulfil its responsibilities. The framework includes the policies, culture, organisation, behaviours, processes and systems that, taken together, facilitate its effective and efficient operation.
Independent Risk Department
An independent Risk Department supports the commercial activities while ensuring they are within the Board approved risk appetite, and the mandates set out by the Risk Committee. At an operational level, Tupras Trading applies a range of risk management tools to minimise overall exposure at any one point in time, including but not limited to:
- Financial derivative instruments to hedge commodity price and foreing currency exchange rate risk
- Strict policies and procedures to manage counterparty, fraud and regulatory risks
- Sufficient capital and funding to manage liquidity risk
- Insurance to protect against various operational risks including freight-related and political risks
