Risk
The Alaska Metals AG Risk Management team comprises of high-calibre professionals with numerous years of experience in the industry and vast operational expertise. Our mission is to provide risk prevention and management in a manner which supports Alaska Metals AG' strategy and objectives, while making every reasonable effort to create a risk-free environment for ourselves and our customers.
Our focus on continually evaluating and assessing risk enables us to fulfil our goals and objectives of providing first class services to our trade partners. We consider all types of risks, including but not limited to:
- compliance risk
- counterparty risk
- credit risk
- market risk
- operational risk
- political risk
The Risk Management team frequently deal with risk identification and assessment in different areas such as:
Market Analysis: the team analyses each of the risks - longs, shorts, market structure, etc, and their influence on cash flow, costs and benefits. This aids in the production of cash utilisation comparisons.
Pricing of Physical Contracts: the team compares producer prices and links them to LME settlement prices. It analyses pricing methods, terms and periods (average, known and unknown). On the contractual side it monitors and optimises contract pricing and delivery terms dependent upon the market.
Hedging: the team ensure that the basic hedging framework (what and when to hedge) is observed. It identifies risk factors in hedging annual physical supply contracts, locking-in forward price differentials and other practical aspects of hedging.