Energy and Commodity Risk Management 

 

Companies dealing in commodities are increasingly exposed to competitive economies, volatile markets, and changing regulatory mandates. Companies examining their business model in this environment are discovering that rapid change requires additional emphasis on risk strategy, analytics, reporting, systems, and governance.


As global commodity markets for energy, agricultural, metals and other commodities experience sustained volatility, companies aggressively seek methods to identify and respond to market, credit, and operational risks.


At the same time, companies operating in such an economic climate are developing strategies and innovative solutions to integrate disparate systems, increase automation, improve reporting and analytics, and reduce costs.


Whether your most pressing issue involves risk capital allocation, hedging strategies, trading compliance, controls, governance, need for better information and analytics, data management, and /or regulatory issues, KPMG is prepared to help.


KPMG offers a full complement of services to meet broad and complex commodity and energy trading and risk management needs. KPMG recognizes commodity risk is different for companies in all sectors of the commodity value chain, from initial production through transportation and processing to final consumption. Our flexible risk management solutions can accommodate each client’s diverse risks, objectives, complexities and constituencies.


KPMG’s Commodity / Energy Risk Management practice is comprised of professionals with deep knowledge in regulatory, technical, analytical, and systems issues. Our professionals understand the enormous pressures faced by our clients and are well-positioned to assist throughout the commodity management lifecycle.

Core Commodity / Energy Risk
Management services include:

 

  • Hedging and Risk Strategy
  • Credit Risk and Collections
  • Risk Reporting and Business Intelligence
  • Operations / Back office –
    settlements, invoicing,
    confirmations
  • Data analytics
  • Commodity trading technology – evaluation, selection and implementation
  • Master data management
  • Trading Compliance
  • Regulatory
  • Governance, Roles and Policies

 

KPMG recognizes commodity risk management is highly dependent on data, systems and infrastructure, as well as being inextricably tied to compliance and other governance considerations. Based on each client’s need, KPMG can deliver these and other supporting services as a comprehensive commodity risk management solution or as stand-alone components tailored to specific client needs and circumstances.

 

KPMG provides executable strategies that cut through complexity to help companies all along the commodity / energy value chain achieve your commercial growth strategy and sustainable business objectives.

 

KPMG serves many of the world’s largest energy, agricultural, mining, transportation and industrial organizations as well as banks and other financial institutions, and our teams are connected through regional and global delivery networks. KPMG is connected closely to emerging regulatory issues and thought leadership through our centers of excellence, and our global network of partners serving the largest, most forward-thinking companies.