Effective Risk Management is a core principle and a competitive advantage for Petrafos. Risk Management culture is based upon a full awareness and understanding of risks, clear accountability and responsibility, and pro-active communication and escalation of issues.
All functions have a key impact and every function within the business has a key role to play in the overall Risk Management of the business.
Cornerstones of control environment comprise of full, daily, independent marking to Fair Value of every position, providing the most important indicator of performance and changing risk that the company has.
VAR is used for risk allocation and measurement across the Group’s trading positions, as is standard in the industry. The company reports to the senior management various daily risk metrics and measurements recognizing no single metric can capture all risks effectively e.g. Stress / scenario tests, Credit exposures, Liquidity metrics, Position limits.