Credit Risk
Performance Risk
Price Risk Management (PRM)
Fixed price or index-linked
Short-term or long-term
Hedging strategies and solutions (whether to hedge, physical or paper/derivative hedging strategies, which index to use)
Risk Management
Spearpoint helps clients identify and manage the key risks associated with the sale and purchase of commodities.
Many clients are simply unaware of the risk they take on when entering certain types of contracts, particularly fixed price contracts (price risk), financial hedging (margin call risk), or index-linked contracts that use an index that is different in quality to the product being bought or sold (basis risk).
We advise clients on key aspects of credit risk, performance risk and price risk so they may clearly understand the risks involved, and make data-driven decisions on what level of risk is acceptable and how best to manage it.
We advise on optimal organisation structures to effectively monitor, manage and mitigate risk.