Commodities Trading & Risk Management

by trueventus

25 - 26 July 2013 | Hong Kong

The growth in commodity demand, market volatility and complexity, and an increase in regulatory and legislative controls have resulted in a need from increasingly correlated markets to deploy a multi-commodity, enterprise platform solution. - Peter Maier, Senior Vice President of ISM Process Industries, SAP AG INDUSTRY OVERVIEW
Large and sustained commodity price swings are quickly reshaping industries and the businesses that exist within them. In this environment, commodity risk management must be rmly integrated into the strategy of the company and structured under a commodity risk management framework. Fluctuations in commodity prices and currency movements can make it di cult to plan and budget for businesses. Commodity Risk Management o ers businesses protection from the negative impact of uctuating prices. This course provides guidance for companies to better understand the commodity markets and to quantify the impact of commodity risks on earnings in order to improve an organizations commodity risk management.

ABOUT YOUR COURSE LEADER

Peter Wais is the owner of Wais Consulting. He focuses on international consulting services, training & courses and IT services. He serves sectors like nance, commodities, energy, oil & gas, trading & supply, shipping and industrial procurement. His commodity and risk management background spans some 25 years and he is an international presenter and consultant on all aspects of commodities, market risk, credit risk, operational risk, corporate treasury, best practices, compliance framework, ETRM, CTRM, TRM, software selection and implementation.

WHY YOU CANNOT MISS THIS EVENT

This two-day, hands-on workshop provides a solid understanding of major commodity markets with an emphasis on practical risk measurement and management techniques. Multiple examples and business cases are used and you will learn how to build and model spread sheet applications for analysis and management of risks across commodities and nance.

PRE COURSE QUESTIONNAIRE

In order to clarify your learning objectives and ensure you get the most out of this training, you will need to complete a Pre-Course Questionnaire stating your knowledge of the subject, level of experience and other relevant issues. The course leader will analyse your form to ensure that the course covers your needs accordingly.

KEY BENEFITS OF ATTENDING

Understand the economics and function of commodity markets and their trading patterns Learn how risk management techniques have evolved for commodity trading and commodity procurement Utilise Excel modeling to cope with risk management issues from a practical view Network and benchmark with di erent commodity traders and risk professionals

WHO SHOULD ATTEND

Credit, Risk and Portfolio Manager Procurement and Purchasing Manager Sales Personnel Commodity Trader Finance Professionals, Auditors, Controller Business Analysts Vendor Account Manager
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Register Now T: +603 2781 1567 F: +603 2781 1505 E: ryanw@trueventus.com

DAY 1 & DAY 2

Session One: Main commodity markets and pricing mechanisms
This session provides an overview of the worlds main commodity markets together with an introduction to pricing mechanisms and price economics. Introduction and overview of main commodity markets, e.g. - Energy - Metals - Agriculture - Freight Commodity prices - Spot markets - Forward markets - Market price vendors Commodity economics - Market participants - Producer, consumer, intermediary, hedger, speculator - Global demand and supply patterns Forward price term structures - Contango - Backwardation

Session Four: Introduction and computation of value at risk

This session provides the foundations to risk metrics calculations and guides participants how to build-up and model Value at Risk calculations with Excel. All example calculations are done with real price histories and spreadsheet models created during the course. Risk metrics calculations with Excel - Parametric VaR - Historical VaR - Monte Carlo VaR

Session Six: Value at risk continued and analytical framework for stress testing
This session extends the standard Value at Risk calculations and presents stress testing techniques and scenario analysis with Excel. Stress testing and what if analysis - Defining stress levels - Modeling of stress tests with Excel

Session Two: Introduction to physical and paper markets

Get familiar with the key factors of the physical markets and its logistical patterns. Introduction to paper markets with an overview of basic instruments and their relationship to the physical markets. Physical markets - Logistics - Selected examples Paper markets and instruments - Exchanges and OTC trades - Forwards, Futures, Options, Option structures, Swaps, Contracts for Dierence

Session Seven: Organizational structures for commodity trading

Best practices are presented for how commodity trading operations should be organized and how commodity trading and risk management processes should be implemented. Organizational framework of risk evaluation and risk measurement - Measure, monitor, manage - Organizational prerequisites - Front-, Mid- and Back-Oce - Best practices Risk pro le analysis of a rms procurement and trading activities - Financial balance sheet - Supply chain considerations

Session Three: Overview of risks and classi cation of risks

This session provides an overview of risks and its classi cation together with examples of how they are treated in a trading environment. Types of risk o Financial risks - Exchange rate risk - Interest rate risk o Credit risks - Counterparty risk - Liquidity risk - Gross and net credit risks - Credit risk mitigation techniques - Netting o Commodity risks - Outright risks - Spread risks - Basis risks o Operational risks

SessionEight: Hedging of commodity exposures, examples and case studies

Learn how to hedge e ciently and how to comply with regulations. Typical hedging examples are presented for some industries. Hedging and hedging techniques - Hedging examples - Portfolio diversi cation - Risk reduction techniques - Regression and correlation analysis with Excel - Hedge eciency, FAS 133 Hedging examples and cases studies - Airline - Car producer - Re nery

Session Four: Risk and exposure calculations

In this session you learn how to calculate risks for various asset classes, how to calculate risk ratios and how to compute exposures on corporate level. Definition of risk and exposure - Volatility, correlation and regression calculations with Excel - Gross and net exposure Risk ratio calculations with Excel - Duration and modified duration - Convexity - Greeks

PROGRAMME SCHEDULE
0830 0900 1030 1300 1400 1530 1730 Registration and co ee Morning session begins Morning networking break Networking luncheon A fternoon session begins A fternoon networking break Course concludes

Commodities Trading & Risk Management

by trueventus

25 - 26 July 2013 | Hong Kong

COMPANY DETAILS
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REGISTER NOW
Ryan Wong T: +603 2781 1567 F: +603 2781 1505 E: ryanw@trueventus.com

ATTENDEE DETAILS 1
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TERMS & CONDITIONS

1. The course fee is inclusive of the event proceedings, materials, refreshment and lunch. 2. Upon receipt of the complete registration form, invoice will be issue. Trueventus request that all payments be made within 5 working days of the invoice being issued. Full payment must be received prior to the event. Only delegates that have made full payment will be admitted to event. 3. Substitution & cancellations policy. Should the registered delegate is unable to attend, a substitute delegate is welcome at no extra charge. Written notifications of all substitutions is required 5 working days prior to the event. Trueventus contracts carry 100% full liability upon receipt of registration. Non payment does not constitute cancellation. A 100% of cancellation fee will be charged under the terms outlined below: Due to limited event seats, Trueventus agrees to reserve the seat for the client upon issuance of invoice. Upon signing of this contract, client agrees that in case of dispute or cancellation of this contract Trueventus will not be able to mitigate its losses for any less than 50% of the total contract value. If a client does not attend the event without written notification at least 5 working days prior to the event date, he/she will deemed as no show. Trueventus does not provide refunds for cancellations. When any cancellations are notified in writing to Trueventus 5 working days prior to the event, a credit voucher will be issued for use in future Trueventus events. 4. Trueventus will at all times seek to ensure that all efforts are made to adhere to meet the advertised package, however we reserve the right to postpone, cancel or move a venue without penalty or refunds. Trueventus is not liable for any losses or damages as a result of substitution, alteration, postponement or cancellation of speakers and / or topics and / or venue and / or the event dates. If force majuere were to occur Trueventus accepts no responsibility or liability for any loss or damage caused by events beyond their control, including, but not restricted to strikes, war, civil unrest, flight delays, fire flood, or any adverse weather conditions. 5. Upon receiving this signed booking form, you the client herby consent to Trueventus to keep your details for the use of future marketing activities carried out by Trueventus and third party organisations & partners. 6. Copyright and Intellectual Property. Any redistribution or reproduction of part or all of the contents in any form in connection to this event is prohibited without prior written consent by Trueventus. 7. Client hereby agrees that he/she exclusively authorizes Trueventus charged the credit card with detials listed above for the amount provided herein; this registration form serves as a contract that is valid, binding and enforceable. He/she at any time will have no basis to claim that the payments required under this Contract are unauthorized, improper, disputed or in any way. 8. Please note that payment with credit card will be done via trueventus online credit card merchant which will appear in the cardholder's statement. All credit card transaction will be charged in PHP.

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APPROVAL
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COURSE FEES
USD2395 per delegate

Hong Kong Documentation Package USD 495

All options inclusive of course papers, luncheon, refreshments and service charge.
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