Risk Consulting

picture With ever increasing globalization of financial markets in general and financialization of commodity markets in particular, the nature of commodity dependent businesses and risks faced by them are undergoing tremendous change and dynamism. In this context, organization with significant exposure to commodity ( measured as % of commodity raw material value to the turnover) are adopting the Risk Management solutions which identify, quantify and reduce the risks faced in their business so that shareholders and management has better visibility and control of risks. Also due to peculiar nature of commodity markets, there is great emphasis levied in customizing risk management solution suitable for the commodity world.
TransGraph with its decades of experience in tracking and understanding commodity markets and its value chains has developed following commodity industry centric Risk Management Solution to reduce the risks:
   -    Benchmarking of existing Risk management Practices Vs the Best in the Industry / Geography / Markets.
   -    Drafting Risk Management guidelines (RMP) encompassing all aspects of Risk Management.
   -    Developing customized hedge frameworks and models.
   -    Setting up of hedge desks through Built Operate Transfer (BOT) models.
   -    On going support through hedge strategies, risk analysis and close interactions with Clients.


Benchmarking Studies : Practice the Best Standards
   -   Risk Profiling of Commodity: Study risk - return characteristics
   -   Risk Node Flow Charts: Identify the risks in the business of the client for all types of trades
   -   Risk Ranking: Rank all types of risks based on business context of client
   -    Risk Study: Summarize current practices of the client in identification, quantification, mitigation and monitoring processes
   -   Risk Audit: Conduct audit of risk governance as per policy
   -   Risk Best Practice Recommendation: Gap Analysis and course of action
Custom Hedge Modeling & Policy Framework
   -    Covering all aspects of hedging viz: When to Hedge, Where to Hedge, How to hedge, How much to hedge, How to un-hedge.
   -    The frameworks cover all types of trades viz: physicals, derivatives, paper and for all types of exposures Viz: actual inventory / trade, impending exposures, basis/ spread trades.
   -    Hedge instruments are selected based on correlation, Hedge effectiveness measurements using direct or proxy commodities."
Risk Management Policy : Governing Policy for All Risk Management activities
   -   Risk Management Committee Hierarchies & Structure: Roles and responsibilities
   -   Risk Management Philosophy: Integration with business strategy
   -   Risk Node Flow Charts: Identify the risks in the business of the client for all types of trades
   -    Hedge Modeling & Policy Framework: Encompassing operational guidelines, When to hedge, where to hedge and how much to hedge
   -   Limits and Alerts: Defining various types of risk limits and alert systems
   -   Review & MIS: Develop various MIS and review formats
   -   Implementation Support: Extending advise in implementation of policy consulting and outsourcing models
Implementation Support
Our dedicated Account Manager will act as single point of contact bridging the gap between the client’s demands and delivery, there by understanding the existing skill set of the personnel and suggest appropriate skill enhancing programs to effectively handle the designed risk policy. Below are the implementation support programs in brief:
   -   Knowledge sharing training
   -   Guidance in establishing in-house risk committee / team.
   -   Streamline hedge-related decision making process with hedge strategy report.
   -   Measure and monitor hedge performance and evolve need-based modifications to the hedge-policy.
   -   Account management support to assist in decision making process.


   -   Association with leading commodity centric industry specific risk solution provider.

   -   Implementable commodity Risk Management Solution with great focus on client business context.

   -   Best delivery at reasonable costs and in short period.

   -   Project Management expertise in commodity industry spread across multiple cultures, trade practices.

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“ I am writing to extend my thanks for the research and price forecasting services provided to us on a daily basis by Transgraph. The reports and information whether they are emailed to us daily or sourced via your website portal, are a consistent and reliable source of quality information. Our industry is one where information and its dissemination can help in differentiating between suppliers."

- Scott Yarwood, Sr. Regional Sales Manager, ADM Trading (UK) Ltd.

“ This is to state our appreciation for Transgraph for continuously delivering on its mandate to provide updated and insightful consulting services in the area of commodities and ingredients. I would also like to thank your team that is always in touch with buyers and feeds in relevant information that has been many times useful in decision making. In nutshell, the engagement with Transgraph has been enriching."

- V. Sridhar, Sector Manager, Commodities & Ingredients, Cadbury India Ltd.

“ By helping simulate the risk scenarios beforehand, TransRisk has added immense value to our trading decision making process at the operating level. The scenarios are comprehensive because one is able to view the basis and rollover risks associated with the hedged positions too. TransRisk also serves as good Dashboard for the top management, as it gives exposures, P&L, associated risk, limits all at one place.”

- S Sivakumar, CEO, Agri Business, ITC Limited

“ At risk framework and imputed risk model of TransRisk are definitely forward looking and will enable us to move away from ‘post mortem’ approach. We can take a business decision of pricing our contracts or purchasing in advance after factoring in a quantifiable and acceptable risk instead of trying to find reasons for the breach of limits."
"A flexible and scalable business intelligence that gives exposures, P&L, associated risk, limits all at one place and this decision support system can be integrated with our existing ERP and will avoid duplication of data entry.”

- Jude Magima, ED – Sourcing and Supply Chain, Dabur India Limited

“ Transgraph has showcased that ‘Risk Management’ is an excellent tool which will help any sourcing organization to deliver in any and even during challenging business scenario. They have succeeded in creating a deeper, specific and relevant input to the automotive sector. Highly recommended, the course was extremely detailed but the faculty made it so easy to understand - Top marks.”

- S.R. Rajan, Vice President-Commercial, TVS Srichakra Limited.

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