Risk management myths 

Morten Groenbech Terp, Oil Risk manager at Global, dispels two common myths associated with fuel price risk management.

  "We can hedge against fuel price volatility ourselves. It's easy."

Fuel risk management is not easy

• in-depth knowledge of the complexities of the energy and financial markets
• state-of-the-art access to pertinent information, and
• the time and staff to constantly monitor pertinent information.

Performed by professionals, fuel price risk management can mitigate fuel cost exposure against an unfavourable market.

  "We don't need to hedge against fuel price volatility at all."

Doing nothing is not an option

Simply waiting for the markets to turn in your favour is – to put it bluntly – gambling. Doing nothing about your exposure to fuel price volatility is speculation.

Exposing yourself to unexpected changes in the cost of fuel can seriously impact your bottom line – or even surpass your expected earnings.