Risk management in Grain Gold Trading FZE covers market risks, credit and operational risks.
The market risk team focuses on the risks associated with fluctuating price change and liquidity. Grain Gold Trading FZE uses, amongst other metrics, VAR and stress testing scenarios to monitor and help predict potential price moves. The global portfolio is analysed daily, considering the correlated risks and thereby allowing the company to navigate potential risks.
The credit risk team focuses on the risks associated with potential counterparty default. The team analyses both macro-economic factors, sector-specific factors and counterparty-specific factors to compute internal credit appetite. This daily analysis using the latest information allows us to protect its balance sheet from economic risks such as default.
The operational risk team focuses on two broad pillars. The TLC team, covering the risks associated with processes within our Trade Lifecycle, monitors such items as process reviews, trade entry and KPIs. The SCLC team covers risks associated with potential losses that may arise from our day to day activities in relation to physical goods.