Years of experience have shown us that every client’s business is unique and so are their metal Price Risk Management problems. The Metal Risk Team offers an extensive range of services that can be insightfully tailored and applied to create solutions that meet individual needs and maximize client benefits:

Best practice price risk management

Successful price risk management must be supported by robust infrastructure constructed to address a business’s unique risks of and meet its goals. We offer the following services to address this:

Purpose-Fit Education

Training for boards, management and front line staff on the theory, the practice and their role in managing price risk

Developing Price Risk Management Policy

Doing the groundwork to develop policy, for approval by the board, that describes the risks that must be managed, how they should be managed and who must do it

Defining Risk Goals & Benchmarks

Establishing a business’s appetite and tolerance for risk, the targets that must be met and how to measure performance against them

Laying Out the Right Structure

The right structure depends on the task and the goals a business sets for it. We offer years of insight into the industry range of alternative and the ones most suited to fulfil the mission

Designing Governance and Control

Effective governance and control not only keeps the train on the rails, it is responsive to changing business needs

Leveraging our Network

We bring the benefit of wide connections for rapid deployment of the best resources

Effective metal pricing

Businesses that truly understand how metal pricing relates to risk and risk mitigation know why suppliers and customers react to different markets and how to benefit. Services we offer include:

Addressing Commercially Created Risk

Assisting commercial departments to identify risky contracting methodology and draw from industry best practice

Pricing Workshops

Training to build an understanding of prices, price-derived risk in commercial contracts, how risk can be used and how it can be used against you

Coordination of Commercial & Risk Functions

Though objectives, process and systems, aligning commercial and risk desk activities so together they can make the most of each market situation

Creating Visibility of Transactional and Trading Performance

Enabling the measurement of performance and the means to make it transparent for management

Market analytics and technical analysis

Delivering an expert view of the state of the market for informed and timely decision making.

Greater control and enhanced profitability

Controlling metal price volatility means more stable financial performance that is less dependent on metal price trends and allows the capture of previously passed up market opportunities. Services we offer to support this include:

Identifying Price Risk

Pinpointing the range of price risks faced by a business, what causes them and quantifying their impact

Modelling Price Risk

Mapping out the size and timing of risk impact and using scenarios to be ready for market possibilities

Enabling Hedge Execution

Laying the management and administrative foundations for effectively hedging against exposure to price risk and managing liquidity risk

Instruction on Hedge Strategy and Forward Market Management

Delivering an understanding of core and follow-up strategy alternatives and the market conditions in which they are most effective

Developing Management Decision Frameworks

Laying out the most effective decision making framework for timely decisions responding to changing market conditions

Highlighting Inefficiency and its Costs

Creating visibility for operating and pricing inefficiency and the costs of price exposures it generates

Efficient and explainable reporting

Efficient reporting clearly conveys the current situation relevant each link of the risk chain. Explainable reporting shows a story of true financial performance, isolating operating results from price volatility. Our supporting services include:

Aligning Financial Reporting for a Risk Managed Operation

Assisting accounting teams to understand hedging, determine if hedge accounting is appropriate, and find ways to report on actual financial results of risk managed operations, undistorted by price volatility and standard accounting convention

Designing Reports and Dashboards to Meet User Needs

Each functional level needs customized reporting that presents the current state of affairs. We bring years of experience to creating reports to address the needs of each level of user

Assisting Selection and Implementation of Risk Management & Reporting Systems

Providing experienced assistance at each stage of acquisition to ensure that the business gets the most of its investment in a risk system

We understand that price risk management problems can be complex and difficult to define. We always welcome the opportunity to talk to you about yours. Don’t hesitate to contact us so we can arrange an obligation-free discussion.