EFFECTIVE RISK MANAGEMENT IS CORE TO OUR BUSINESS AT GUNVOR.
Centralised Risk Management and Finance teams are responsible to monitor and manage the overall risk exposure on a real-time and daily basis across the globe. Their experience and expertise determines Gunvor’s portofolio risk profile and provides guidance related to new business and transactions.
The risk management group is also responsible for setting limits and monitoring positions.
Market Risk
Our market risks are monitored through an
in-house trading system which generates
real-time position and mark-to-market
valuation. We also use Value-at-Risk (VaR)
limits and other risk metrics including Monte
Carlo simulations, scenario analysis and
stress testing in order to measure the impact
of the market price and volume movements in
strategies and the portfolio profit and loss.
Credit Risk
Credit Risk teams work very closely with the
Front Office, Legal and Finance teams.
Our process proved its effectiveness under the uncertain economic circumstances of the past four years.
Clients are grouped and assessed according to their credit characteristics.
Liquidity Risk
Liquidity management helps ensure the
availability of sufficient cash to meet our
contractual commitments and sufficient
funding to face stressed market conditions.
Our company mainly relies on its equity-base and short term overdraft to finance its working capital needs.
We have put in place a large & diversified pool of banks to ensure availability of credit lines for our liquidity needs. Our banks have been committed to supporting Gunvor through the increased needs of the last few months and years.
Operational Risk
Operational risk is frequently assessed
through all business lines and actions are
implemented to mitigate any appearing risk.
We are in the process of developing performance indicators to monitor the effectiveness of key operational processes and provide assurance that processes are functioning effectively.
Capital Management
The use of capital is taken in high
consideration when it comes to start a new
business or make a structured transaction.
Our policy is to maintain a strong equity base so as to maintain banks and market confidence and to sustain future development of the business.