KYOS CCA

KYOS Corporate Commodity Advisory

KYOS CCA delivers financial tools and advisory services to large organisations with regards to energy and commodities.  KYOS CCA assists to get a better understanding of commodity exposures, products and price developments. This forms the basis for a sound commodity risk management strategy. For years this concept has been implemented for FX and interest rates. In today’s volatile environment, the need for a similar approach with commodity exposures is clear.

Advisory services

KYOS CCA aims to decrease commodity costs and avoid negative surprises by:

• Providing insight in company wide exposures, resulting from different commodities, countries, business units and/or periods
• Improving Risk Management by setting up a practical strategy, calculating volatilities & historical analysis, performing Monte Carlo simulations and create Cashflow-at-risk reports
• Advising on effective procurement and hedging strategies by selecting appropriate products, appropriate contract structures, appropriate volumes & durations while maintaining the necessary flexibility
• Monitoring by aggregating exposures into understandable reports and risk statistics, while taking into account the various interactions and implementing a clear monitoring and risk management process
• Incorporating IFRS: when hedge accounting is applied, commodity hedges need to be in line with physical contracts. Therefore it is essential to have the ability to allocate commodity hedges to physical contracts

Corporate segments

KYOS CCA advisory services are most valued in sectors where energy or commodity costs have a substantial impact on the overall business performance. Examples include:

Chemical Construction

Packaging Glass

Steel & Metal Paper