The New Hedging Environment

Executives today are faced with a seemingly unprecedented combination of economic risks and uncertainty. Exposure to commodity price volatility adds another layer of risk to an already uncertain environment, and companies with commodity exposure should be seeking to find ways to mitigate this risk.

Hedging remains a tool companies can use to help manage price risk, reduce budgetary uncertainty, and enhance working capital and liquidity management. Companies should understand how changes in the economy and commodity markets affect the hedging environment and could require adjustment to their hedging strategies.

This podcast discusses the changes in the hedging environment and the new elements of an effective hedging program.