Risk management is an essential since within one or two bad trades, a trading firm may face with the risk of bankruptcy. In order to maintain a successful and active trading, Sugih applies a range of risk management strategies to minimize the overall possibility of losing.

  • Financial derivative instruments to hedge physical transactions

  • Investment in modern equipments and midstream infrastructures to manage operational risk

  • Insurance to cover potential business, political and credit risks

  • Use Forward Freight Agreement (FFA) to protect against the rising future freight rates

  • Expand the breadth of activities in different commodity markets to offset price pressures                       

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