PRICE RISK MANAGEMENT
Steel prices are inherently volatile, making business planning a complicated and risky exercise. The introduction of steel futures at the London Metal Exchange and other futures exchanges provides a neutral tool that puts the steel industry back in control of price. SSAVCO Universal's specialist price risk management team employs a range of derivative tools to manage the Group's exposure to physical market price fluctuations and has forged an alliance with Bank Of India to offer price risk management services to external parties.
SSAVCO Universal has clearly defined its risk management governance framework and risk management procedures. The Group works to understand, reduce and control risk in every pillar of its business. Risk management procedures have been developed and refined as SSAVCO Universal and the industry have evolved. A number of the risk monitoring systems, including its internal approach to risk profiling, have been developed in conjunction with its lending banks. |
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SSAVCO Universal: Principal Risks and Risk Mitigate
SSAVCO Universal has even categorised the principal risks into commercial risks, financial risks and overall risks that can adversely affect the performance of the Group. It is recognised that risk management and internal controls can only provide reasonable and not absolute protection against risk. Risk appetite is not static and will be reassessed on an ongoing basis to ensure it continues to be aligned with goals and strategy. |
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