The INTL FCStone Integrated Risk Management Program (IRMP®) is a unique customer-centric approach to commodity risk management. We begin by working with our customers to identify and quantify all commodity risk that they may have in their business. We then construct a strategic and systematic approach to manage that risk, with a view to protecting and enhancing the net margin and bottom line of the business. This is a rigorous and time-consuming process, but results in deep and lasting relationships that can help our customers enhance their bottom-line results. Why Incorporate a Risk Management Program? More than ever, the marketplace for producers and users of commodities is global in scope. As a result, supply-and-demand factors that once caused barely a ripple in the domestic market now are capable of creating high degrees of unpredictability and price volatility. This volatility, in turn, poses more difficulties than ever for the profitability of virtually all businesses that are vulnerable to commodity price fluctuations – including producers, processors, importers, exporters, manufacturers, distributors, and end users. It isn’t only the commodities that companies directly produce, process, or distribute that create these challenges. Businesses also must be able to predict and control the cost of other factors that directly impact their bottom lines, such as interest rates, foreign currencies, and fuel.
Why the INTL FCStone IRMP? The INTL FCStone IRMP offers a comprehensive strategy that helps companies not only survive but thrive in today’s difficult commodity environment. The INTL FCStone IRMP was created by and is managed by our consultants, who have in-depth expertise in the supply-and demand situation for specific commodities, access to our extensive proprietary database and detailed historical knowledge, and substantial experience in creating and using innovative risk-management tools. Selecting the best tools for the job – including exchange-traded futures and options, cash and forward-market contracts, and customized over-the-counter products – our consultants construct a risk-management program that is tailored to your company’s specific needs, and then work closely with you to execute it.
The objective? To limit risk and uncertainty, and improve margins and bottom-line results, so you can concentrate on what you do best: Running your business.
How IRMP Works
Your INTL FCStone consultant collects historical purchase data on your specific commodity usage and conducts an in-depth analysis of the current and projected global supply-and-demand situation. INTL FCStone will develop a comprehensive strategy to manage the risks we identify, as well as make ongoing recommendations for the use of standardized or customized risk-management tools to help you meet your objectives. As a clearing member of all major North American futures exchanges, FCStone, LLC has experience in all major commodity markets and access to all appropriate financial over-the-counter instruments through our affiliate INTL FCStone Markets, LLC to manage your commodity price risk. One of the benefits of engaging an INTL FCStone consultant for an IRMP® is that much of the risk management work is done for you, allowing you to focus on other priorities. You don’t need to be concerned with day-to-day market analysis; the INTL FCStone consultant will do that for you. At all stages of the process, we will execute programs only upon your approval.
Any organization with exposure to fluctuating commodity prices can potentially benefit from the IRMP®. Our consultants currently work with producers, distributors, manufacturers, processors, wholesalers, retailers, importers, and exporters – in short, any company that is reliant on, and vulnerable to price volatility in, commodities.
In addition to our extensive experience in all of the agricultural markets, we also have an in-depth understanding of the global foreign exchange and energy markets. Whatever your commodity needs, your INTL FCStone Consultant can evaluate and manage these needs as part of the IRMP.
Whether you realize it or not, many of your toughest competitors are actively managing their commodity price risk. We can provide you with the expertise and knowledge required to level the playing field and help your business be more competitive than ever.
The trading of commodities and derivatives such as futures, options, and swaps involves substantial risk of loss and may not be suitable for all investors. Advisory services as well as the trading of futures and options is available through various subsidiaries including but not limited to FCStone, LLC. The trading of swaps is available through subsidiary INTL FCStone Markets, LLC to eligible counterparties. Please click here for the full disclaimer