Suppose you are a risk management professional working for iManageRisk firm which is located in Melbourne. iManageRisk provides consulting services to firms such as airline companies and mining companies on their risk management. Mr. Robert Lee, the treasurer of Hilditch Pte Ltd, approaches you today (assume it is now March 2020) to ask you for advice on the financial risk management of his company.
Hilditch (Australia) Pte Ltd is mining company which specializes in base oils, fuels and other refined oil products. In the decades, Hilditch has grown and evolved to supply many more products and services to markets around the world. Hilditch trades with groups in Korea, Japan, China, Singapore, Indonesia, Thailand, Malaysia, Taiwan, United Kingdom, Europe, South Africa, USA and of course Australia. As a growth company, Hilditch’s reveue is positively related to oil price and it aims to a growing cash flow from expanding oil trading operations and seeking to define up to 20 million gallons of jet fuel.