As we're sure you'd know a lot more than us, risk is an element which transcends many of the boundaries of conventional productivity.
As a result, surely there's a lot of room for exploration when talking about areas where risk professionals may be overlooking in the opinion of a leading risk director of Alvean, Kim Benni.
Ahead of his participation at Comrisk for the 3rd year running, we thought we'd ask him a few questions to get you into the mood.
The commodity trading sector is under a lot if scrutiny from regulators and auditors. What are in your opinion the 3 areas that are being overlooked by risk professionals?
The political risk, which I had the pleasure to share a few concepts about during ComRisk 2016, is in my view still quite under-appreciated and brings potential fracture lines as well as great opportunities to commodity trade. A higher occurrence of disruptive events such as the US-China trade war, Brexit, IMO-2020, currency devaluations and others is reversion to the pre-1990's instabilities.
"The bulk of commodity business often have access to tons of private data but lack the ability to monetise them."
The entry of new well capitalised companies in commodity, who works with limited private data but vastly superior analytics skills. The bulk of commodity business often have access to tons of private data but lack the ability to monetise them.
Finally, I believe that an entire generation of managers never experienced a high interest rate environment, and as such some commercial decisions, and their consequences in cash flow booking, are made without properly recognising for the cost of money.
You’ll speak on trade sanctions at the next ComRisk gathering. Traceability being one of the challenges in this area, could you give us a sneak peak at the tools that can ease the hassle around documenting all movements in commodity trading?
Having an end-to-end CTRM system goes a long way in fixing traceability and sanctions issues. The trick is to acquire the right information early enough to extract value from it through analytics and automated screening.
You’ve been joining us for a few years now. What makes you come back?
"The trick is to acquire the right information early enough to extract value from it through analytics and automated screening."
Mainly the chance to join an assembly of my peers as well as the large spectrum of industry topics which is debated over the conference.
Keen to see what the fuss is about surrounding the inimitable Kim Benni? See him in person along with hundreds of your peers, register for Comrisk for free here.