Risk management is an essential part of Western Bulk’s DNA. It is fundamental in all our operations.
More than a set of systems and models, risk management is a way of thinking that permeates the organisation from top to bottom and across departments and offices. In Western Bulk, a decision is always considered on a risk-adjusted basis.
Our risk management infrastructure includes various models to quantify risks, as well as policies and procedures to limit and control the various risks we face. At the core is a sophisticated in-house risk management system, largely inspired by the models seen within the financial industry but adapted to the realities of a highly physical and imperfect freight market. The risk management system is crucial to ensure a robust downside protection on the Company's earnings and to evaluate commercial decisions on a risk-adjusted basis, but the real value driver is not primarily the system itself, but rather the people that use the system to improve our understand of risks and value drivers.
Therefore, our risk management infrastructure is continuously updated to remain relevant to the current risk environment.