Welcome To Protorisk
Advisory, risk management and reporting services on every aspect of managing price risk with derivatives.
Providing advice on commodity derivative transactions
Like many consulting companies, Protorisk’s value derives from our staff – and our staff know commodities markets and commodity derivatives. From quantitative modelling and systems development, structuring and pricing to financing and trading we have a wealth of knowledge and experience. These skills, combined with this level of specialization, have led to a truly original business geared to advise, identify and assist our clients to capitalise on opportunities they have in the commodities sector.
Protorisk focusses on specific transactions which we know can be dramatically improved, either from a risk or profit perspective, with the use of commodity derivatives. We supply all the expertise, systems and technology to allow our clients to participate, as equals, in the commodity derivative markets without the corresponding commitment in time and effort.
If you have a direct or indirect exposure to commodities and want to know why you should do more than simply “ride it out” or “back it out”, we can help. We are about more than just doing deals, we aim to share market insight, best practice and knowledge because we believe that we will only be successful if our clients build and maintain profitable, sustainable businesses first.
Banks
Creating and developing in-house commodity derivative capabilities
Protorisk assists financial institutions that have commodity exposure. From clients with no prior commodity derivative experience and only simple debt portfolios to those who already have established trading books with residual derivative exposure. We are confident that we can provide solutions that can significantly improve risk and profitability.
Emerging Market Banks are often reliant on corporate lending as the key driver of their profitability. When lending to the Resource Sector, commodity hedging is a perfect example of an ancillary business since it both reduces risk and increases profitability on the financing.
Carrying out this business correctly however is not as simple as it may seem. The market is littered with examples of how this business can go wrong. We believe that hedging is a business for the long term, and needs to be approached as such.
The Protorisk Approach to Commodity Derivatives
Banks with existing, in-house capabilities know that the commodity derivative business is an important source of revenues and risk mitigation. The challenge for smaller institutions is to contain the costs and still run the business professionally.
Protorisk advocates a unique approach to this challenge which enables revenues to translate more directly into profitability.
Corporates
Experience in every aspect of commodity price risk management
Protorisk offers corporate advisory and reporting services on every commodity derivative related issue. This includes risk within borrowing facilities as well as the direct hedging of commodity exposures.
Turning Complexity into Clarity
We make risk management analysis easily accessible, customisable and understandable to non-specialists in order to facilitate informed macro business decisions.
World-Class Risk Support
Our Hedge Intelligence Service provides clients with all the information, insight and support they need to run a world class risk management operation.
Protorisk provides five main advisory services.
​Advice on formulating a tactical or strategic hedging programme.
​Advice on best execution practice and counterparty relationships.
​Advice on reconciling bank derivative valuations to internal valuations.
​Advice on optimally structuring physical offtake contracts from a pricing point of view.
​Advice on commodity price linked finance structures.
We believe that risk managers and other stakeholders should be provided with all the information they need to manage their activities, not just the information that's easy to produce, therefore enabling informed robust business decisions.
Team
Team with years of experience in the commodity derivative markets
​Protorisk’s consultants have participated in the commodity derivative markets for many years, covering the full range of specialist sub-disciplines from systems development and quant modeling to structuring, financing and trading. They have been involved with a wide spectrum of commodity counterparties and are highly experienced and motivated. The group firmly believes a transparent professional commodity structuring capability is achievable for all participants.
About Us
Providing structuring and price risk management advice
Protorisk started life in early 2010, in London, by providing price risk management advice to a FTSE 100 oil producer under the regulation of the FSA. At that point we provided services related to the valuation of commodity derivative products.
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In late 2010 we began work with our first banking client. We began advising them on how to professionally manage the price risk associated with their commodity related lending activities. Subsequently, we have advised large and medium sized banks and financing companies, particularly in Nigeria, on issues relating to the structuring, execution and management of commodity hedges. This has resulted in dramatically improved risk profiles and profitability for our clients.
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In 2013 Protorisk (DIFC) Ltd was set up in Dubai, regulated by the DSFA, to replace the UK based entity.
Our Values
Our values define who we are as a global organization.
Success comes from hard work, learning from the experts and paying attention to the details.
We will always behave with integrity, respect and fairness to our clients and our colleagues.
We will always highlight any or potential conflicts of interest and strive to manage any that may occur.
We strongly oppose discrimination in any form and strongly oppose corruption in all its forms and will play our part in identifying and reporting corrupt practices without exception.
Contact Us
General Enquiries
Business Location
​Dubai International Financial Centre | Dubai