OpenLink, the global leader in trading and risk management solutions for the energy, commodities, corporate and financial services industries, and consultancy Baringa have launched a whitepaper exploring best practice in treasury management for commodity intensive corporates. The paper looks at the business case for integrated treasury and commodity risk management.
The combined forces of currency and commodity price volatility, an increased focus on risk, regulation such as MiFID II and Dodd-Frank, and the development of technology have changed the environment for treasury management at corporates that have commodities in their supply chain. The paper argues that the traditional siloed approach is no longer fit for purpose and reviews the experiences of four corporates that have embraced an integrated approach.
Baringa Partners, which works with a number of commodity intensive corporates in an advisory capacity, sets out the key building blocks for developing a business case to bring the traditionally siloed functions together, and the paper concludes with a look to the future.
OpenLink has a strong track record of serving commodity intensive corporates, and its system was recognized as one of the best and broadest available in the bobsguide Buyer’s Guide to Treasury Management Systems 2015/2016. The company recently announced a deal with Etihad Airways to consolidate its fuel risk management and treasury business on one platform. Managing these functions in one system instead of the previous two provides senior managers with a complete view of operations and treasury activities such as dealing, risk management, cash liquidity and working capital management, back office operations, corporate finance and insurance.