Archem applies a range of risk management tools to minimize overall exposure at any one point in time. These include:
- Financial derivative instruments to hedge commodity price and foreign currency exchange rate risks
- Insurance to hedge various operational risks including freight-related and political risks
- Due diligence prior to acquisition and good management after acquisition to hedge environmental risks
- Ready access to sufficient capital and funding to hedge liquidity risk
- Strict policies and procedures to hedge counterparty relationships, fraud and regulatory risks