Our ability to effectively manage the risk inherent in commodities trading is fundamental to LBP continued development and stability. It contributes to our positive financial performance and helps mitigate earnings volatility.

LBP 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
• Strict policies and procedures to hedge counterparty relationships, fraud and regulatory risks