Risk Management Opinion

let’s say you have a company consuming raw material  (gas & oil) for its production up to 2 b€/year. The company due to lag of know how (mainly of management) avoids to adopt any hedging strategy claiming that with pricing on a monthly average, shares the risk with its providers and avoids to be accused if its hedging program fails.
What can would you say for this policy? looking forward for your opinion.

1 Comment

Filed under Uncategorized

One response to “Risk Management Opinion

  1. dimitris

    working in risk management division of a large financial organization….and my comment is: “no comment”!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s