Running a fleet fuel purchasing department or a bunker trading, broking or physical supply operation in often volatile market conditions is a challenge for even the most experienced players. However, a firm grasp of the fundamentals of price, credit and counterparty risk management can help companies ride out the peaks and troughs of price, commercial and currency trends. A sound and prudent financial risk strategy can protect a business and, if well managed, can support and add to its profitability.
This highly-focused, intensive two-day course is relevant and useful for all marine fuel professionals – both buyers and sellers. It clearly explains the essentials of price, credit and counterparty risk assessment.
Using derivative tools correctly can both minimise risk but also offer the potential for high returns. This course includes a number of class-based exercises designed to introduce students to a range of hedging techniques, including swaps, options and collars. For sellers, there is also an analysis of hedging positions – how and when to take long or short positions – and an explanation of spread mechanisms.
Markets terms and jargon – bull and bear markets, contango and backwardation, etc. – will be explained and there will be information on option pricing and arbitrage.
The cornerstone of the marine fuels business is to know as much as possible about your counterparties in purchase and sale transactions. This course looks at how to set realistic credit terms and limits, and how to use market information, such as credit reports, effectively.
Maintaining tight financial control is key to running a successful marine fuels purchase or supply operation. As such, this course comprehensively covers issues of tax regulation and accounting, potential liabilities, business continuity planning and management reporting as part of a well-structured corporate financial risk management strategy.
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