Need help with hedging?

What is layered hedging? Using a declining wedge to avoid hedge cliffs We’re getting to know John, the Head of Procurement for Fancy Gizmo. John is progressing nicely up the commodity risk maturity ladder. Nearly a year ago, as a first step, John hedged 50% of Fancy Gizmo’s forecast copper purchases for the next 12 months. John is a keen amateur zoologist and he loves analogies. He’s reading an interesting article on lemmings. A worrying thought struck John. “Am I a lemming?”

What goes in a commodity risk management policy? A governance framework. Last article we met John, the head of procurement for Fancy Gizmo. After reading some articles on the Forge aHedge website, John is progressing up the commodity risk maturity ladder. One day as John is sitting thinking what his next step should be, he’s disturbed by his boss, Sally, the CFO. “Dr Copper”, she affectionately calls him now after he helped smooth out recent market volatility, “I need help.”

First steps in commodity hedging: forecasting exposure and your first hedge “Even the greatest was once a beginner. Don’t be afraid to take that first step.” - Muhammad Ali. In our previous article we discussed a simple scale for assessing your commodity risk management maturity, starting from Naïve, progressing through Novice, Normalized and finally to Natural. Let me introduce you to John. John runs procurement for Fancy Gizmo Limited. A key component in Gizmo production i

The commodity risk maturity ladder: Naïve, Novice, Normalized and Natural "You're only young once, but you can be immature forever." - Germaine Greer. Have you ever benchmarked where your organization sits on a risk maturity scale? David Hillson devised a useful scale listing four increasing levels of risk maturity: Naïve, Novice, Normalized and Natural. In order to deliver best practice commodity and financial risk management it is important to benchmark where you sit on the