Hedge and Risk Management

We effectively manage the risk inherent in commodities trading, is fundamental to Ponza’s continued growth and stability.

Financial, operational and market risks are an integral element of commodities trading and physical supply. We have sophisticated risk management systems, processes and controls in place. Risk policies are centrally determined, exposures are analyzed daily, and our policies and procedures are continuously reviewed and updated.

At Ponza we use a range of risk management tools to minimize overall exposure at any single point in time, to address the following core elements in trading :

    • Hedge commodity price and foreign currency exchange rate risks
    • Insurance to hedge various operational risks including freight-related and political risks
    • Hedge environmental risks
    • Hedge liquidity risk
    • Hedge counterparty relationships, fraud and regulatory risks