At Petrodex, risk management and compliance are foundational to our sustained success and resilience in the energy sector. In an industry marked by market volatility and stringent regulatory frameworks, our commitment to effective risk management and adherence to compliance standards is crucial.
Price risk tools are deployed to ensure that we navigate price fluctuations and market uncertainties. We employ various strategies to address this risk effectively:
Utilizing futures contracts, swaps, and options to stabilize revenue streams and protect against adverse price movements.
Balancing exposure across various oil products, geographical markets, and contract durations to mitigate single-market vulnerabilities.
Leveraging detailed market analysis and real-time information to inform trading decisions and anticipate price trends.
Our approach to managing credit risk includes:
Evaluating potential counterparties' creditworthiness through financial health assessments, market reputation, and credit history.
Defining transparent payment terms, credit limits, and collateral requirements in contractual agreements.
Engaging with multiple counterparties to distribute credit risk.
Using letters of credit, bank guarantees, and insurance coverage to manage credit risk effectively.
Regularly updating credit risk management strategies to align with industry best practices.
Operational risks include a variety of factors such as logistical challenges, supply chain disruptions, equipment failure, and accidents. Storm Energy manages operational risks through:
Conducting regular assessments to identify and address potential hazards within our operations.
Developing comprehensive plans to manage unforeseen events and ensure continuity.
Securing appropriate insurance, including marine and goods-in-transit, to mitigate financial losses from operational disruptions.
Foreign exchange (forex) risk arises due to currency fluctuations, which can significantly impact the profitability of international transactions. We manage forex risk through:
Compliance with regulatory requirements is vital to our integrity and legal standing. Our processes include:
Implementing a thorough Know Your Customer (KYC) procedure for all counterparts.
Regular reviews and oversight by compliance committees to identify and mitigate risks such as reputational damage, money laundering, and terrorist financing.
Conducting searches to identify negative news, sanctions, or associations with Politically Exposed Persons (PEPs).
Staying updated with relevant laws, regulations, and industry standards.
Establishing robust control systems for transaction reporting, record-keeping, and data protection.
Performing regular internal and external audits to identify and address compliance issues.
Using “World Check” for monitoring and managing financial, regulatory, and reputational risks, with automated notifications for changes in partner status.
Petrodex is dedicated to Environmental, Social, and Governance (ESG) principles, which include:
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