Risk Management at Kager International Group
At Kager International Group, managing and mitigating risk is fundamental to our operations as a leading commodities and energy trading facilitation and consultancy company. With a dynamic market landscape, our comprehensive risk management framework ensures we navigate challenges effectively and secure long-term success.
Comprehensive Risk Management Framework
Our risk management framework is built on a combination of robust policies and internal procedures designed to address a wide spectrum of risks. These include:
- Liquidity Risk
- Credit Risk
- Country Risk
- Exchange Rate Risk
- Price Risk
- Market Risk
- Operational Risk
- Environmental Risk
- Freight Risk
- Compliance and Regulatory Risk
Multifunctional Approach
Our framework involves various functions such as Risk, Controlling, Tax, Finance, Credit, Compliance, Health, Safety, Environment and Community (HSEC), and Internal Audit. Each function plays a crucial role in minimizing overall risk exposure and ensuring stability.
Risk Management Tools and Policies
We employ a range of tools and policies to mitigate risks, including but not limited to:
- Financial Derivative Instruments: Used to hedge commodity price and foreign currency exchange rate risks.
- Offsetting Physical Positions: Acting as natural hedges.
- Insurance: To cover operational risks, including freight-related, country, and political risks.
- Capital and Funding Access: Ensuring sufficient liquidity.
- Strict Policies and Procedures: Managing counterparty relationships, fraud, and regulatory risks.
Proprietary Information System
Central to our risk management is a proprietary information system that consolidates trade positions, financial exposures, and trade profit and loss results globally on a daily basis. This system allows management to monitor overall exposure and take timely corrective actions. Our in-house IT developers continuously refine this system to integrate new products and functions related to logistics, invoicing, tax, and reporting.
Policies and Procedures
Our stringent policies and procedures, subject to constant review, cover hedging, trading, operations, and compliance. These policies are critical in managing counterparty relationships, preventing fraud, and adhering to regulatory requirements.
Supply Chain Risk Management
Kager International Group reduces supply chain risk by working with a diverse range of suppliers from various geographic markets. We leverage our own infrastructure, including vessels, terminals, and storage locations, and build long-term relationships with reputable logistics organizations worldwide.
Independent Monitoring and Extensive Insurance
We monitor our supply chain and inventory using independent third-party organizations. Our extensive insurance coverage includes physical inventory, marine cover, political risk, and payment risk. Additionally, our internal controls and blockchain-backed payment systems mitigate fraud risk across the supply chain.
Global Risk Management Processes
Our global risk management processes identify risks that may impact profitability, such as:
- Commodity Price Risk
- Interest Rate Risk
- Credit Risk
- Capital Risk
- Liquidity Risk
- Operational Risk
- Currency Risk
Centralized risk management and finance teams monitor and manage risk exposures within approved guidelines. These teams, along with risk, credit, finance, tax, and compliance functions, regularly engage to ensure all risks are accurately captured and to vet new projects when necessary. External consultants provide additional expertise as needed.
Through diligent attention to all aspects of risk, Kager International Group manages its supply chain efficiently, ensuring we serve our clients in the most effective and responsible manner. Our commitment to robust risk management practices underpins our success and growth in the commodities and energy trading industry.