Increased competition, the growing sophistication of customers and investors have forced many organizations to introduce more complex trading products and strategies. With this increase in complexity comes an increase in the associated risks. We have identified eight red flags that could indicate increased risks for stakeholders of commodity trading companies.
On 23 December 2011 the Swiss Parliament enacted the new accounting law, which became effective on 1 January 2013. The new accounting law includes some changes that are relevant for commodity trading companies, particularly with respect to the application of valuation principles.
Trading commodities has been the foundation of human economic activity through the ages, fundamental for our survival as individuals and fundamental for the sustainability of our economic and social systems. It is understandable that the attention and interest of civil society in the way we manage these important resources is increasing.