Trading And Risk

// . // Energy And Natural Resources // Trading And Risk

What We Do
What We Think
Breakthroughs
Solutions
Who We Are

What We Do

We advise companies involved in commodities markets on their strategy, trading operations, and risk approach. We support businesses in unlocking new value from commodities markets, setting up new trading organizations that grow returns from existing production or consumption, helping them create effective, efficient companies. We combine deep expertise in specific commodity markets with strong knowledge of strategy, operations, and risk management.

Our Expertise

Market strategy

Our expertise lies in identifying value extraction opportunities through advanced marketing and trading, optimizing portfolio allocation, facilitating energy transition strategies, and developing growth strategies through mergers and acquisitions. We also specialize in creating successful go-to-market strategies and improving trading strategies with advanced analytics and forecasting.

Trading operations

We develop strong commercial models and optimize organizational structures and processes. We also assist in establishing the right culture and incentives for trading companies. Our expertise extends to advanced IT architectures, analytics, and AI for trading, as well as robust financing and treasury strategies. We specialize in post-merger integration, ensuring seamless integration of trading divisions and unlocking maximum value.

Risk approach

We specialize in risk management, developing robust operating models aligned with strategic priorities. Our holistic approach integrates credit, liquidity, and market risk, enabling better decision-making. We also assist companies in managing emerging non-financial risks, including operations, regulations, and cyber threats. Our expertise lies in leveraging advanced tools for quantitative risk monitoring and modeling.

Commercial Transformation

We support companies in creating new trading platforms to capture value. For existing operations, we enhance trading sophistication through policy review, organizational design, process improvement, and system optimization. Our expertise ensures trading excellence by optimizing performance, maintaining competitiveness, and benchmarking against key indicators.

$2 billion

total revenue achieved by a new trading organization at a national oil company

20%

of savings identified as a proportion of addressable spend by developing a leaner operating model for a leading independent commodity trader

35+

number of commodities forecast under various climate scenarios to understand new value chain interlinkages and growth opportunities for a major agricultural and commodities trader

$100 million

estimated annual gross margin uplift from trading for a major European oil and gas company during a broad transformation program

Established traders have steered volatile commodity flows over the past year, demonstrating their ability to master times of uncertainty. By prioritizing trading agility and efficiency, they will solidify their pivotal position in connecting the global supply and demand of commodities, even in the face of geopolitical events

Adam Perkins

For major commodity producers and consumers, active trading strategies can help deliver more value. From optimizing asset performance to hedging against growing market and liquidity risks, a robust trading strategy unlocks the untapped potential of trading adjacencies and interfaces, driving commercial optimization and maximizing overall value

Joanne Salih

As ‘old’ and ‘new’ commodity markets mature, it will be a strategic imperative for producers and consumers of those commodities to leverage their inherent advantages — like existing assets, product and capacities — and to rapidly mature their commercial models to both manage the increased risks from these markets; and to actively capture value at stake

Abhi Bhuchar

The necessity of fighting climate change is creating new sources of demand for commodities and creating interlinkages between different value chains. Traders that are responsive to these seismic shifts can capture enormous value by capitalizing on new sources of optionality — and will be critical to meeting climate targets

Christian Lins

What We Think

For centuries, traders have played a vital role in ensuring that global goods arrive at the right place, at the right time, to the right specifications, and for the right price. The commodity trader serves as a crucial facilitator of global trade, ensuring the continuation of global commerce, even amidst fluctuating prices and a constantly changing environment. With global demand and supply drivers undergoing structural changes — due to geopolitics, the energy transition, and more — their role in our society, and ability to create value, is only going to grow.