According to commodity trader - Rowan Relton, commodity risk refers to the qualms of future market values and the size of the future income caused by the variation in the prices of commodities.
Meaning of Commodity Risk Management
The process of identifying measuring and supervising coercion to organization capital and earnings is called commodity risk management these coercion or risks could stem from a wide variety of sources including financial hesitation legal liabilities strategic administration errors accidents and natural catastrophes.
Know about the actualities about Commodity Risk Management with Rowan Relton, commodity trader.
1. Vast Commodity Risk Data is Real
In the world of commodities, greater loots come when the degree of jeopardy commodity is higher than usual, the ratio between success and failure in this is very minimal. Therefore, a trader or investor can make a lot of money, but they can mislay a lot too. The problem with too much data is that they are trying to weed their way through merging it to fit a specific business need, says Rowan Relton. As they say in trading terms “too much data can murky the water making it difficult to categorize valued trends”
