Risk Controls

Hedging and Commodity Risk Management

1. Develop a detailed hedging program with specific price targets, volumes and tenor based on total demand and implied risk

2. Provide training in derivatives and risk management for senior management and the board of directors

3. Conduct a corporate risk – self assessment

4. Establish written policies for hedging

5. Develop a Decision - Chain of Command and define roles and responsibilities

6. Mark-to-Market existing positions daily with a specific distribution list

7. Provide adequate financial reserves to manage hedge risk

Kodiak Fuels Client Hedging Strategies

Our objective is to develop, with you, a cost effective, risk adverse hedge program that keeps you competitive in the industry. Clients are utilizing several different programs that are very specific to their corporate and fiscal needs and managed within their financial tolerance. We provide an outside accountability source to satisfy management’s need for assurances of checks and balances on transactions and Daily Mark-to-Market valuations. We assist in insuring that Corporate Accounting requirements (like FASB 133) are satisfied.

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