Commodity Price Risk Management
- Finance & Investment
This module is conducted in-person.
1 day
Weekday (9am - 5pm)
Who Should Attend
- Relationship managers and bankers who advise trading and commodity companies
- Trade finance specialists, account and marketing managers
- Commodity traders who are keen to learn risk management using derivatives
- Corporate treasurers, finance directors in trading and commodity companies
- Professionals in middle office functions such as credit, risk, audit and operations, etc.
Overview
Commodities prices had a super cycle that started in the early 2000s and lasted over a decade. Since then, the landscape for commodity markets has changed significantly. With the ensuing periods of volatility, many players face potential losses if they are on the wrong side of trade. Uncertainties arising from on-going tensions in geopolitics and trade relations among the world’s leading economies are expected to drive volatilities in commodity prices.
This workshop looks to identify the different risks in trading and financing commodity trades, and develop strategies to manage and hedge such risk exposures to ensure profitability.
Learning Objectives
- Understand key risks in commodity trading
- Identify drivers of market volatility
- Know derivative market structure and instruments
- Learn to hedge commodity price risks
- Implement strategies to manage price risks
Topic/Structure
Introduction to Risks
- The different types of risks
- Hedgeable versus unhedgeable risks
- Methods for managing hedgeable risks
Risk Management in Commodity Trading
- Risks and returns
- Drivers of price volatility
- Risk exposures for commodity trades
Overview of Commodity Derivative Markets
- Market structures and key players
- Contrasting listed and OTC markets
- Instruments and products
Hedging Strategies Using Futures & Swaps
- Applications of futures and swaps
- Hedging commodity consumers risk
- Hedging commodity producer risks
Hedging Strategies Using Options
- Application of call and put options
- Hedging commodity consumers risk
- Hedging commodity producer risks
- Long versus short positions in options
Implementing Hedging Programs
- Key Considerations
-People, systems and processes - Balanced approach to implementation
- Case studies – Hits and misses
Assessment
As part of the requirement for SkillsFuture Singapore, there will be an assessment conducted at the end of the course. The mode of assessment, which is up to the trainer’s discretion, may be an online quiz, a presentation or based on classroom exercises.
Participants are required to attain a minimum of 75% attendance and pass the associated assessment in order to receive a digital Certificate of Completion issued by Singapore Management University.
Calculate Programme Fee
Fee Table
| COMPANY-SPONSORED | |||
|
PARTICIPANT PROFILE |
SELF-SPONSORED |
SME |
NON-SME |
|
Singapore Citizen < 40 years old Permanent Resident LTVP+
|
$327 (After SSG Funding 70%) |
$127 (After SSG Funding 70% |
$327 (After SSG Funding 70%) |
|
Singapore Citizen ≥ 40 years old |
$127 (After SSG Funding 70% |
$127 (After SSG Funding 70% |
$127 (After SSG Funding 70% |
|
International Participant |
$1,090 (No Funding) |
$1,090 (No Funding) |
$1,090 (No Funding) |
All prices include 9% GST
Please note that the programme fees are subject to change without prior notice.
Post Secondary Education Account (PSEA)
PSEA can be utilised for subsidised programmes eligible for SkillsFuture Credit support. Click here to find out more.
Self Sponsored
SkillsFuture Credit
Singapore Citizens aged 25 and above may use their SkillsFuture Credits to pay for the course fees. The credits may be used on top of existing course fee funding.
This is only applicable to self-sponsored participants. Application to utilise SkillsFuture Credits can be submitted when making payment for the course via the SMU Academy TMS Portal, and can only be made within 60 days of course start date.
Please click here for more information on the SkillsFuture Credit. For help in submitting an SFC claim, you may wish to refer to our step-by-step guide on claiming SkillsFuture Credits (Individual).Workfare Skills Support Scheme
From 1 July 2023, the Workfare Skills Support (WSS) scheme has been enhanced. Please click here for more details.
Company Sponsored
Enhanced Training Support for SMEs (ETSS)
- Organisation must be registered or incorporated in Singapore
- Employment size of not more than 200 or with annual sales turnover of not more than $100 million
- Trainees must be hired in accordance with the Employment Act and fully sponsored by their employers for the course
- Trainees must be Singapore Citizens or Singapore Permanent Residents
- Trainees must not be a full-time national serviceman
- Trainees will be able to enjoy ETSS funding only if the company's SME's status has been approved. To verify your SME's status, please click here.
Please click here for more information on ETSS.
Absentee Payroll
Companies who sponsor their employees for the course may apply for Absentee Payroll here. For more information, please refer to:
AP Guide (Non-SME Companies)
Declaration Guide (SME Companies)
Intake Information
This module is conducted in-person.
| Course | Dates |
|---|---|
| INTAKE 3 | [To Be Advised] |
*Online registration will close 5 calendar days before the course start date
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