Operating margins in today’s marketplace are razor-thin and even the slightest fluctuation in input, production, or transportation costs can turn your business upside down. This exposure to market fluctuation is defined as market risk. For many businesses, risk management tools can be used to take some of the uncertainty out of the equation and help protect your margins.
Developing and implementing a risk management plan can be a daunting endeavor. FCStone, LLC's risk management professionals can guide you in the process of risk management and help determine what tools are appropriate for your business.
Risk Management is about taking control of your business and protecting your margins, rather than allowing the whims of the market to define your success. FCStone works with customers through its Integrated Risk Management Program. An IRMP customer can expect FCStone’s Risk Management Consultants to:
- Identify risks you may be exposed to in commodities such as cotton, synthetic fibers, natural gas, fuel surcharges and foreign exchange
- Quantify your value- at-risk through a detailed risk-management analysis
- Develop a step-by-step plan to reduce your exposure to risk in the most cost- effective way through the use of futures, options or Over the Counter (OTC) products. OTC products are offered through INTL Hanley, LLC.
- Educate key staff and management on all risk-management and trading strategies
- Implement the risk management plan so you can protect your budget and improve your bottom line
- Provide daily market information and analysis
- Account for hedge recommendations through month- and year-end positions
You have a business to run. When it comes to managing your commodity price risks and making financial decisions in this increasingly volatile world, you shouldn’t have to face those challenges alone. That’s why FCStone partners with your business, putting our 80 years of experience to work controlling your commodity costs. With proven strategies, we work hard to help you achieve your goals and protect your margin.