risk management

Our group policies and procedures are based on best practices and principles that safeguard our business operations and reputation.

Our business is built upon understanding and managing risk. Its ownership structure incentivises the preservation of capital and a measured approach to risk, and creates a culture of responsibility and accountability. In addition to statutory audits, internal auditors are engaged to assess and improve the internal control systems of the company. We believe checks and balances are key to good corporate governance. We aim to consistently reach the highest standards with regard to our safety, health, environment and quality (SHEQ) activities, and maintain the highest standards wherever we operate.

Financial Risk

Northfield employs a wide range of techniques and metrics at corporate, portfolio or trading level to gauge risk. A robust control process covers the entire life cycle of risk from inception to settlement. Credit risk is assiduously managed by our Credit Department, providing a vital link between corporate risk and the front office trading units, providing necessary checks and balances to facilitate new trading opportunities and mitigate counterparty, sector and country credit risks.

Use of Value at Risk

Value at Risk (VaR) is a widely used tool for monitoring risk in our industry. We use it to measure, manage and allocate risk across our business. Individual sub-limits are set and enforced by senior management. VaR is only one of a series of tools available, that typically include, position limits, market depth, concentration and liquidity considerations, as well as stress and worst-case scenario metrics.

Operational Risk Management

Northfield pay extraordinary attention to detail in ensuring the operational suitability of the vessels that we use to transport commodities. Shipping, cargo management, loading and unloading is overseen by dedicated experts together with independent inspection companies. Products in storage and the storage assets themselves are continuously monitored.