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Commodity Risk Management

BCG helps clients manage commodity risk in order to minimize exposure and create value. Our comprehensive offering supports the entire commodities ecosystem, including commercial and trading strategies, operations and IT implementation, and more.

The ongoing energy transition, coupled with shortages from traditional energy sources has led to an era of super volatility. It could be the start of a golden age for commodities markets—if companies can manage the risks. BCG helps energy, industrial, and other clients understand and limit their commodity market risk exposure.

Our Approach to Commodity Market Risk

We partner with the entire ecosystem of commodities and trading players. Originating in BCG’s energy consulting work, our commodity risk management and trading risk client work has expanded from utilities and oil and gas producers to metals and mining operations, agribusiness, and other industrials. We also assist merchant traders and banks as well as commodities exchanges, brokers, data providers, and government agencies.

Our global team of experienced trading risk consultants helps commodities traders in each of those industries capitalize on market conditions to create value through updated strategies, operating models, portfolios, IT systems, and more. Our approach includes:

  • Developing marketing, sourcing, and trading strategies and business models 
  • Implementing commodity risk management operating models including governance, organization, business and risk processes, and IT systems 
  • Promoting cross-industry expertise, tools, and perspectives to provide enhanced insights and capabilities 
  • Transferring knowledge and ownership to clients’ commodity trading and risk management organizations 
  • Assessing trading performance through proprietary benchmarking tools  

Our Clients' Success in Commodity Market Risk

BCG Benchmarks for Managing Risk in Commodity Trading

Deep roots in the commodities industry and a long, fruitful track record guarantee that BCG commodity risk consultants speak the same language as folks on trading floors. Our consultants’ knowledge and experience are supported by regular BCG commodities industry benchmarking that dates back to 2006. The benchmarking series provides deep dives into key trends of the day, allowing us to spot emerging markets and share guidance on how to adjust business models and manage future scenarios in order to minimize trading risk.

Explore Our Insights on Commodity Risk Management

Eric Boudier on Commodity Trading and Risk Management

BCG’s Eric Boudier discusses the importance of commodity trading and risk management.

How Traditional Commodity Traders Can Use Digital Tools to Stay Competitive

BCG’s Antti Belt gives insight on how traditional leaders can combat new digital players encroaching on their turf by thinking how they want to compete, which small digital projects they can launch, and scaling their best projects fast.

Meet Our Commodity Risk Consultants

Our sizable trading risk consultant team has noteworthy experience across a broad spectrum of commodities and geographic regions, plus deep connections with industrial clients. Team members include several former energy and energy commodity exchange CEOs as well as traders and risk managers. We’re one of only a few firms with an IT staff dedicated to implementing trading and risk management systems.

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