The majority of established traders consider one of the main keys to success in trading – a balanced and smart approach to estimation of risks in the management of trading capital – risk management.
SwissEnergy fulfills all trade agreements through a global network of commercial operators. Operational teams are organized as reporting units towards the headquarters and the President of the Board. They are based in our main trade centers.
Commercial operators play a vital role in the execution process of SwissEnergy.
Operators manage the commercial agreements and are responsible for the operational execution on ships, railroads, in oil terminals, for the questions of financial and operational security, for legal matters and tax issues.
Price Risk Management
SwissEnergy is exposed to price risk due to the fact that such risk is common to the nature of the commodity trading business. The risk management policy of SwissEnergy is aimed at systematically keeping the risk level on acceptable levels through constant monitoring and adjustment of the trading activities.
Risk management plays a basic role for SE. In best case not a single commodity transaction is performed without a thorough risk analysis by the company not depending on the type of the trade or its time frame. Risk minimization is achieved primarily by the structurization of the physical transactions and risk transfer to third parties.
Similarly to the majority of other trading companies the mitigation of price risk is achieved by the implementation of hedging strategies. These strategies allow us to reduce our exposure to spot price volatility using both market and off-market derivative financial instruments.
The risk management department is constantly confronted with, analyzes and performs estimations of our price risk. All our transactions are subject to strict internal controls and trading restrictions.
Credit Risk Management
The risk appetite of SwissEnergy is determined by the risk management department of SwissEnergy which includes members of the top management team. Within the framework of monitoring for each transaction performed in the SE Group a special attention is paid to the minimization of credit risk. The team for the management of credit risks is responsible for the analysis of counterparty risks and for the setup of acceptable risk levels for the company.
Global risk management
The global approach of SwissEnergy towards risk estimations and risk management is a high priority issue for its successful business activities. The company strictly manages risks on a global scale in such areas as trading, operations and logistics, geopolitical risks, finance, IT systems, human resources and in accordance with the current global and local norms and legislations.
The company underlies the Swiss legislation with respect to the existence and functioning of internal control systems. The alignment of SE with the respective regulations is audited by external auditors.
Among all existing and anticipated risks a special attention is paid to the management of global price risk and global counterparty risk.