The guidelines in this policy can be used by organizations looking to optimize their trading and commodity risk management activities. This policy establishes the roles, responsibilities and protocols necessary for managing these activities effectively and details various aspects such as approved risk limits, transaction authority limits, daily reporting procedures, data handling and record retention policies. It also outlines specific transaction types and limits, providing a robust framework for managing risks associated with physical and financial transactions.

Furthermore, it emphasizes the importance of governance and oversight, stating that any changes to the policy must be approved by the board of directors and the risk management committee. The document also includes a sample certificate of acknowledgment, emphasizing the importance of compliance with the policy. Lastly, it specifies authorized products, instruments and markets, ensuring that companies operate within their defined scope of activities. Overall, this policy document is a valuable tool for companies to manage their trading and commodity risks effectively and efficiently.

Specifically, the risk management committee is responsible for:

• Overseeing strategies and issues impacting the company’s overall risk profile
• Advising the board of directors concerning risk policy matters
• Delegating risk management authorities to appropriate company personnel
• Reviewing the effectiveness of the specific trading and strategies implemented