Commodity Trading

A powerful credit and counterparty risk management solution that delivers sophisticated decision making tools and analytics for global commodity trading firms 

 

Commodities are one of the fastest growing markets and over the past two decades have become truly globalized. Trading in commodities requires firms to enter into complex credit arrangements for the sale and transport of goods across multiple regions. The commodity markets have become increasingly complicated as global regulators introduce changes to way the markets are controlled. In this complex environment firms face increasing challenges in credit risk management which can directly impact company performance.  Firms that take an analytic and proactive approach to monitoring and managing risk have a significant competitive advantage. 


Integrated and Consistent Counterparty Risk Management is Key in a Fast Paced Market 

Counterparty risk management poses a huge challenge for global commodity trading firms.  Geographic spread, large number and varying types (small producer to multinational conglomerate) of counterparties makes it very difficult for risk managers to implement a consistent credit policy. Moreover exposure calculations need to account for complexities like seasonality and volatility of prices, accurate credit quality and geopolitical risk modeling etc. Traditionally risk management teams have used systems built around spreadsheets and emails to cobble together processes that are difficult to enforce in a consistent and timely manner.


Sound credit and counterparty risk management is an important component of industry best practice. Firms that adopt sophisticated credit risk management systems are able to better manage their tolerance and capacity for risk, increase market penetration and improve competitiveness. Quantifi’s high performance, scalable solution for managing credit risk can be easily implemented, is intuitive to use and flexible to adapt to support the pace of change in the commodities markets.  

 


 “We evaluated a number of commodity risk specialist technology providers and decided on Quantifi, given their expertise and capabilities in this space. We’ve been pleased with Quantifi’s ability to exceed our expectations in developing a world-class credit and counterparty risk management tool customized to our specific needs.” 

 Rick Bernstein, Senior Director, Global Credit Risk & Insurance, Bunge Limited 


 


Commodities Counterparty Risk Management (CCRM)

Quantifi’s CCRM solution is a powerful  integrated counterparty risk management solution for global commodity trading firms.  The solution empowers management to implement the firms credit policies across regions and businesses globally. Firm wide, all participants involved in the credit decision making and risk management process can use Quantifi to make optimum credit decisions while managing the associated risk. Quantifi is designed to help firms manage and mitigate credit risk by providing exposure vs limits reporting, what-if analysis and stress testing. 

 

Quantifi Commodity Counterparty Credit Risk Management - Single Enterprise Wide Architecture