Risk management companies help businesses to manage the risks associated with commodity trading. They can provide a variety of services, including:
Price risk management: Price risk management companies help businesses to manage the risk of price fluctuations. They can do this using a variety of methods, such as hedging and insurance.
Operational risk management: Operational risk management companies help businesses to manage the risk of disruptions to their operations. This may involve developing contingency plans and managing supply chain risks.
Financial risk management: Financial risk management companies help businesses to manage the financial risks associated with commodity trading. This may involve managing foreign exchange risk and credit risk.