Physical commodities trading and delivery encompasses financial, operational and market risk. They cannot be completely avoided, but can be significantly mitigated and managed. EIO Fidelity maintains a sophisticated risk management framework, procedures and controls.

EIO maintains a robust control environment, coupled with a comprehensive trading structure and reporting framework which are crucial in gaining insight over the firm’s performance and potential opportunities. Timely and accurate risk reporting result in effective strategic and operational decisions by EIO management.

Risk policies and procedures are determined centrally, exposures are analyzed daily, and our processes are continuously analyzed, reviewed and updated.

EIO Fidelity applies a range of risk management tools to minimize overall exposure at any particular point in time. These include but not limited to:

  • 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