The metals market is moving fast and it is become more complex than ever. Recently, many banks and brokers have been exiting the metals space or reducing their presence. This is due to increased regulations and costs. Needless to say, this movement adds to the complexity of this market. But with this change comes opportunity. Financial executives may now have the opportunity to seek new partners to help them be successful and mitigate risk for their business.
I have spent more than a decade in the commodities markets, providing derivative solutions to manage price risk. In my experience, the most important factor in success is how well we know our customers and their businesses. A true “customer centric” approach involves preparation and a deep understanding about how their businesses work, what their objectives are for their risk management programs, what hedging policies are in place, what key commodities they need to hedge and more.
Recently, I was working with my customer – a soft drink bottler. We have worked with many customers in this industry to help them manage risk in corn or sugar. But through our discussions and better understanding the bottler’s needs to better maintain budgets and protect margins, we knew the game changer was aluminum. And then creating a customized hedging solution that was currency-translated to accommodate their international business.
The customer said, “you can do that?” And with confidence, I said, “of course.”
A customer-focused risk management provider ensures the focus is entirely on serving customers and offering solutions that help them succeed, no matter how complex or fast-moving the markets are.