4 Reasons to Hedge
First
Hedging against energy price risk means strategically using financial instruments or market strategies to offset the risk of any adverse price movements. Thus hedging, for the most part, is a technique that is meant to reduce potential loss (and not maximize potential gains)
Second
Companies attempt to hedge price changes because those fluctuations are risks peripheral to the central business in which they operate
Third
Hedging can also be used to improve or maintain competitiveness. Companies don’t exist in isolation; they compete with other domestic companies in their sector as well as globally
Fourth
Firms that have good risk management programs can use this stability to reduce their cost of funding or to lower their prices in markets that are deemed to be strategic and essential to the future progress of their companies
At GRM we plan to be the global energy risk manager of choice, providing access to all energy markets and promoting cleaner energy use through developing risk management solutions to help support those nascent and life-saving markets.
In practice
Through our deep derivatives expertise and full participation in global energy markets, GRM provides consumers and producers of energy commodities the ability to access the right energy commodity markets to manage all energy price risks inherent within their operations efficiently.
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Effective risk management starts with questions. Get in touch and we will answer yours.