Most businesses are subject in some form to commodity risk, whether in the form of raw materials used in the business, materials sold or commodities used in the running of the business (e.g. oil). The prices of such commodities are dependent on the wider economy and on conditions over which that business has no control, yet fluctuations in the price of such materials can have a major impact on the profit margins of any company. An increase in the price of wheat, for example, could have a very detrimental influence on a food manufacturing firm or restaurant chain, whereas a decrease in the price would be bad news for farmers; an increase in oil prices could destroy profits for an airline or holiday company. This highly practical book explains in clear jargon-free terms how every financial manager can manage such risk by the use of commodity futures. Aimed at the ordinary businessman, this book is a practical primer for anybody who wishes, not to speculate or trade in derivatives markets, but to find a suitable medium for managing and minimising risk within their own industry, by the purchase of futures and options in commodities that are essential to their own business, by the purchase of futures and options in commodities that are essential to their own business.
Book Details:
- Author: John J. Stephens
- ISBN: 9780470364345
- Year Published: 2001
- Pages: 240
- BISAC: BUS027000, BUSINESS & ECONOMICS/Finance
About the Book and Topic:
Most businesses are subject in some form to commodity risk, whether in the form of raw materials used in the business, materials sold or commodities used in the running of the business (e.g. oil). The prices of such commodities are dependent on the wider economy and on conditions over which that business has no control, yet fluctuations in the price of such materials can have a major impact on the profit margins of any company. An increase in the price of wheat, for example, could have a very detrimental influence on a food manufacturing firm or restaurant chain, whereas a decrease in the price would be bad news for farmers; an increase in oil prices could destroy profits for an airline or holiday company. This highly practical book explains in clear jargon-free terms how every financial manager can manage such risk by the use of commodity futures. Aimed at the ordinary businessman, this book is a practical primer for anybody who wishes, not to speculate or trade in derivatives markets, but to find a suitable medium for managing and minimising risk within their own industry, by the purchase of futures and options in commodities that are essential to their own business, by the purchase of futures and options in commodities that are essential to their own business.
This is one of the titles in the IIA / John Wiley risk management series. It is a clear practical guide to managing commodity risk for financial managers within corporations. The IIA/ John Wiley risk management series is aimed at senior managers (often in a financial role) within corporations. It addresses issues that could endanger the profitability of a company and examines methods for minimising risk in this area. Forthcoming titles will include: Managing IT risk Managing reputational risk Managing outsourcing risk Managing financial and accounting risk.
* Highly practical approach. * Accessible to financially literate managers with no prior experience of the markets. * Will help businesses to manage risk in turbulent economic conditions. * Endorsed by the Institute of Internal Auditing. * Check lists for each chapter.
About the Author
JOHN J STEPHENS has considerable practical experience of commodities trading and runs a training company specialising in the futures and futures options markets. For 10 years he was CEO of a management consultancy firm with many large international clients, whilst from 1992 onwards he worked in the financial services sector for first SANLAM and later ABSA Bank, specialising in market and financial product development. He is also an advocate of the Supreme Court of South Africa.