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

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One response to “Risk Management Opinion

  1. dimitris

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

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