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Taking control of your fuel price risk

Hedging fuel prices reduces or eliminates a company's exposure to fluctuating fuel costs.

The risk management process

Our simple, yet flexible, three-step-process kick-starts your fuel risk strategy and keeps it fine-tuned to the market. Together, we’ll create a mutually agreed plan that outlines – from A to Z – the steps we’ll go through. Should a change in your circumstances arise, we can refine the plan at any point in the entire process.

Step 1: Gathering data and identifying goals

Taking control of your fuel price risk is easy with Global. Our simple, yet flexible, three-step-process kick-starts your fuel risk strategy and keeps it fine-tuned to the market.

Your Oil Risk Manager will start by working with you to gain an understanding of where you are exposed to fuel price fluctuations. Discussion points may include:

  • Your current and future business environment
  • Your current financial position and budgets
  • Stakeholder objectives and needs
  • Your attitude to risk
  • Required fuel consumption, and
  • Fuel cost calculations

Naturally, all of this information is regarded in strictest confidence.

Step 2: Preparing and implementing your fuel price risk plan

When you and your Oil Risk Manager have gained an understanding of your exposure, step 2 of the three-step-process can begin. Your Oil Risk Manager will suggest a range of tools to reduce your fuel price exposure and work with you to formulate an overall fuel risk strategy. You will get:

  • One knowledgeable client contact person with access to all resources
  • A full exposure analysis of your business
  • An independent outline of the implications of various strategies
  • Help packaging and presenting your case to senior management, and
  • A customised manual to help you trade with confidence

Naturally, all of this information is regarded in strictest confidence.

Step 3: Reviewing your plan

An important part of the process is to regularly review the performance of your fuel price risk plan with your advisor. Your ongoing relationship with your Oil Risk Manager may involve:

  • Tracking your account
  • Valuing and reviewing your positions
  • Informing you of new opportunities as they emerge, and
  • Consultations as required

Going forward, we will continue to keep you updated on the latest developments in the oil market throughout the duration of your contract.

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