Risk Management
Our ability to effectively manage the risk inherent in commodities trading is fundamental to Gunvor’s continued development and stability.
Financial, operational and market risks are an integral element of commodities trading and physical supply. They cannot be wholly avoided, but can be planned for and managed. DSS Project Management Ltd maintains sophisticated risk management systems, processes and controls. Risk policies are determined centrally, exposures are analyzed daily, and our procedures are continuously reviewed and updated.
DSS applies a range of risk management tools to minimize overall exposure at any one point in time. These include:
- Financial derivative instruments to hedge commodity price and foreign currency exchange rate risks
- Insurance to hedge various operational risks including freight-related and political risks
- Due diligence prior to acquisition and good management after acquisition to hedge environmental risks
- Ready access to sufficient capital and funding to hedge liquidity risk
- Strict policies and procedures to hedge counterparty relationships, fraud and regulatory risks