Risk Management

Risk Management

the ability to effectively manage the risk involved trading is fundamental to GOTRA for our continued development and stability.
Financial, operational and market risks are an integral element of commodities/energy trading and physical supply which cannot be wholly avoided, however with internal risk management systems, processes, controls and risk policies analyzing exposures on daily basis can reduce or eliminate negative exposures.
At GOTRA we apply a range of risk management tools to minimize overall exposure at any point of time. These include:

  • Financial derivative instruments to hedge commodity price and foreign currency exchange rate risks
  • Insurance to hedge various operational risks including freight-related and political risks
  • Due diligence prior to acquisition and good management after acquisition to hedge environmental risks
  • Ready access to sufficient capital and funding to hedge liquidity risk
  • Strict policies and procedures to hedge counterparty relationships, fraud and regulatory risks.