Managing commodity risk has emerged as a key issue in today’s economy. Consider airlines which have seen fuel costs rise seven-fold over the last few years says Bob Tevelson a partner and managing director at BCG. In this interview Tevelson says commodity risks are associated with both price volatility and supply availability. More and more companies may wish to turn to hedging strategies to manage commodity risk he notes but such strategies can pose risks themselves unless they are properly implemented.
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