Abstract

The Russia-Ukraine conflict has precipitated significant market volatility, notably affecting the energy and agricultural sectors. This paper offers a concise analysis of corporate hedging tactics in this tumultuous context. Specifically, it examines the energy sector's reaction to fuel price escalations and supply disruptions, highlighting Trafigura Group's revised risk management strategies utilizing financial derivatives to combat market unpredictability. Concurrently, the paper scrutinizes the Louis Dreyfus Company's (LDC) strategic response within the agricultural domain, acknowledging DC's proactive risk management measures, including asset insurance, alternative operational frameworks, and advanced risk assessment protocols. Additionally, the paper delves into the strategic allocation of gold as a corporate hedging instrument amidst geopolitical strife, evaluating its historical efficacy, crisis performance, and status as a potential financial refuge. The discourse concludes by articulating the imperative for adaptive, ongoing recalibration of corporate hedging strategies, underlining the integration of conventional assets like gold for comprehensive risk management amidst the ongoing Russia-Ukraine crisis.

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