Commodity Risk Management

COMMODITY RISK MANAGEMENT: CONSOLIDATE ALL YOUR BUSINESS DATA SECURELY

Collect and centralise all the information you need for an effective commodity risk management strategy. titanTreasury mines the many IT systems used by your company (ERP, accounting systems, dealing platforms, cash management and payment software) and by your partner banks, brokers and depositories.

Commodity trading, futures contracts, and other products companies invest in and trade on the markets can constitute a potential financial risk. Fortunately, using the right technology, these risks can be mitigated very effectively through the appropriate hedging strategy. Thanks to a convenient cloud-based interface, titanTreasury offers compelling hedging tools to optimise your risk management strategy.

Organise and consolidate the company’s data in a single repository to meet the specific needs of both internal (purchasing, trading, sales and marketing, risk, finance, treasury and top management) and external (auditors, accountants) stakeholders.

Import your commodity contracts and critical information for managing risk into titanTreasury . Our secure system hosted in France prevents data losses, eliminates duplicate entries and guarantees your working data is consistent at all times. Commodity risk management becomes an integral part of your security strategy.

Speed up processing of your commercial, financial and accounting transactions by automating the most time-consuming tasks so you can spend time on what matters most for your business. Using commodity risk management technology in conjunction with your company’s financial management software, you can keep an eye on commodity prices and assess risks effectively.

HAVE RELIABLE INFORMATION ON COMMODITY RISK AT YOUR FINGERTIPS

Gain clarity with an accurate picture of your total net position, physical position and hedges against commodity risk for a firm grasp of all your transactions. Stay up to date on the price of your commodities and futures and get a clear picture of the risks your company is exposed to at all times.

Project cash inflows and outflows for the purchase and sale of commodities, visualise all your trade commitments and monitor the risks generated by each of your positions using our consolidated views by business and/or underlying. By tracking all your transactions and analysing the performance of your trading activities, you can make the right decisions for your business and practice hedging wisely and whenever necessary.

Use key indicators, such as Value at Risk (VaR), to track the mark-to-market valuation of your positions by commodity and your commodity risk by underlying and as a whole. Indicators span multiple horizons to factor in the liquidity of each commodity.

Monitor your open positions by underlying and all associated risks to guide you in setting up the right hedges when the tolerance thresholds defined in your risk management policy are exceeded (VaR over a given horizon depending on a percentage of equity, for instance).

Analyse the correlations between commodities and the related FX risk to model your group's risk exposure and produce comprehensive and reliable data on demand for senior management showing potential gains and losses.

Share current information with authorised users and use the system’s customised automated workflows to send notifications so that stakeholders have the crucial insights they need, when they need them. titanTreasury offers a streamlined approach to commodity risk management.

TEST SCENARIOS TO IMPROVE COMMODITY RISK MANAGEMENT

Empower your organisation with a true risk management strategy. Simulate the operational, financial and accounting consequences of a wide range of scenarios to develop a resilient hedging strategy thanks to dedicated services.

Copy your entire database to our Simulation Universe to modulate and measure the impact of both endogenous (campaign budget, signed contracts, financial agreements entered into, etc.) and exogenous (variations in commodity prices, exchange rates, freight and fuel costs) parameters.

Feedback from our customers Mousquetaires group:

We are exposed to a wide range of raw material risks (energy and soft commodities). Some of our exposures are hedged by derivatives. The objective is to capture all the financial transactions that will allow us to centralise our hedging trades, have a global view on the underlying exposure and the cash flow from hedging transactions.

The Commodity module in titanTreasury allows us to book transactions on derivatives organised markets and OTC) but, more generally, the solution gives us the possibility to book derivatives on interest rates, currencies and commodity. There are few solutions on the market that can offer this possibility. We can therefore book the entire panel of operations that we may have to deal with. titanTreasury integrates easily with our Cash Management by managing Cash Forecasts, Treasury cash flows and payments. The objective is to manage a real front-to-back to accounting workflow.

Before titanTreasury we used to have a very fragmented management of our operations. With titanTreasury, we can now manage all the financial derivatives processed throughout the group and we monitor them in a central tool. This has helped us to save time. Tasks are no longer handled locally but centrally within the treasury department.

Brett Chauchard
Front Office Treasurer

Victor Lieutaud

Project Manager

Feedback from our customer Auchan:

The titanTreasury tool allows us to get reliability and save time. Within Auchan Retail department, we hedge and fix the price of our next salmon purchases. We were able to create and configure these hedges from scratch in titanTreasury , in complete autonomy. With our reprocessing, we directly value our contracts with the automatic integration of the Fish Pool market*. Now it's easier for us to report and manage these hedges on a daily basis.

*The global exchange for price hadging of fish and seafood products, https://fishpool.eu

Johann Gouders

Valuation & Middle Office Manager

Synchronise the work of your teams

Get all your teams involved in actively managing commodity risk so that all business lines contribute to performance.

titantreasury gives you the tools to coordinate the work of your teams so that excellent commodity risk management becomes a competitive advantage, with more agility in implementing trading strategies and greater control of risk.

Advise your teams and alert them when strategic limits or thresholds are breached to prevent speculative trades in commodities or hedging instruments.

Use the rich range of custom features in our reporting functions for clear communication across the treasury management chain. Make use of titanTreasury's APIs to convert your Excel spreadsheets to an updated and secure production tool.

titanTreasury is a simple solution to implement your commodity risk management strategy in a single, secure sovereign Cloud-based TMS hosted in France.