Risk Management in Global Commodities

Murad Harasheh ()
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Murad Harasheh: University of Bologna

Chapter Chapter 3 in Global Commodities, 2021, pp 47-75 from Springer

Abstract: Abstract In this chapter, I present a variety of tools used in managing and mitigating different types of risks in the global commodity business. For example, insurance is a risk-sharing technique that is used to mitigate event and operational risks, diversification is a risk-reduction technique to mitigate strategic, operational, and financial risks, while hedging is a risk-transfer technique used to mitigate price and quantity risks. We will see more details on how hedging works using different types of commodity derivatives and the different kinds of markets interacting globally for risk management in commodities.

Keywords: Risk management; Insurance; Hedging; Diversification; Price risk; Currency risk; Contango; Backwardation (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-030-64026-2_3

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DOI: 10.1007/978-3-030-64026-2_3

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