Risk Management

Sophisticated own risk management and control system in place minimizing results volatility

The Sodrugestvo Group enforces a risk-aware corporate culture in all decision making. A ‘no-surprise risk policy’ is the focus of risk management and reinforces the Group’s control consciousness.

Our risk management committee members are seasoned grain industry, trading and business professionals with a wealth of expertise in industrial crushing, grain trading, derivatives and risk management.

Effective decision making in times of high market uncertainty and volatility is key to our success. Creating value and sustainable results for our stakeholders, maximising market opportunities, while minimising business risks is the focus.

To support this commitment, Sodrugestvo’s risk environment is substantially enforced across the group, to achieve high-quality risk analysis for all management decisions at all levels within the organisation.

Skilled risk teams on local and group level process accurate and timely information, analyse the market/prices, credit/counterparty information, foreign exchange, freight and operational risks, monitor defined risk acceptance thresholds and report to group risk management committee members.

To ensure best practice in firm-wide processes and risk management, group-wide integration is initiated that enables cost-reducing thanks to supply chain processes (ERP) in the industrial-crushing sector. This approach also produces results for integrated trade & risk systems.

Near-real time information processing within a complex market and business environment shortens the time required for making decisions, increases information accuracy, enhances the information base and creates value for decision making across the group.

Cutting-edge technology with advanced methodology for risk measurement as Value-at-Risk (VaR), a daily disciplined group monitoring process reinforces a risk culture that is built on conservative group risk strategies and policies.

We have a clear commitment to best practice in risk
management, which empowers the risk environment, and creates a culture of risk
awareness and pragmatic risk enforcement. Business opportunities and residual
group risks need to be balanced to achieve long-term sustainable results.