Risk Management
Effective Risk Management is a core principle and a competitive advantage for Petrafos
Based upon a full awareness and understanding of risks, clear accountability and responsibility, and pro-active communication and escalation of issues
Full Risk Awareness
Clear Accountability
Pro-active Communication
Continuous Monitoring
Risk Management Principles
Our comprehensive framework for managing and mitigating risks
Core Principle & Competitive Advantage
Effective Risk Management is a core principle and a competitive advantage for Petrafos. Risk Management culture is based upon a full awareness and understanding of risks, clear accountability and responsibility, and pro-active communication and escalation of issues.
Every Function Has a Key Role
All functions have a key impact and every function within the business has a key role to play in the overall Risk Management of the business. Cornerstones of control environment comprise of full, daily, independent marking to Fair Value of every position, providing the most important indicator of performance and changing risk that the company has.
VAR & Risk Allocation
VAR is used for risk allocation and measurement across the Group's trading positions, as is standard in the industry. The company reports to the senior management various daily risk metrics and measurements recognizing no single metric can capture all risks effectively e.g. Stress / scenario tests, Credit exposures, Liquidity metrics, Position limits.
Multiple Risk Metrics
We recognize that no single metric can capture all risks effectively. Our comprehensive approach includes Stress testing and scenario analysis, Credit exposure monitoring, Liquidity metrics tracking, and Position limit controls to ensure robust risk management across all operations.
Processes & Controls
Strict credit and compliance systems ensuring operational integrity
KYC Due Diligence
Comprehensive Know Your Customer procedures for all counterparties
Vessel Vetting and Tracking
Rigorous vessel inspection and real-time tracking systems
High Risk Country Trade Approval
Special approval policy for transactions in high-risk jurisdictions
Payment Controls
Including third party payment verification and authorization
Support Staff Training
Continuous training programs for all team members
Management & Compliance Initiative
Executive oversight and compliance monitoring
Compliance Integration
Compliance is deeply integrated into our operations, ensuring that every transaction meets the highest standards of regulatory requirements.
Key Principle
Compliance interacts with the traders and is involved in day to day activities and transactions. Interaction with Compliance is non-negotiable.
Compliance Touchpoints
- Compliance and the new joiner process
- Compliance interacts with traders in day-to-day activities
- Interaction with Compliance is non-negotiable
- Current compliance themes and regulatory updates
- Global sanction advisory monitoring
Compliance Systems
Industry-leading tools and technologies for comprehensive compliance
Infospectrum
Comprehensive vessel and counterparty intelligence platform
Lloyd's List Intelligence
Maritime intelligence and risk assessment tool
Ocean Intelligence
Real-time vessel tracking and monitoring system
D&B Reports
Dun & Bradstreet business credit and risk reports
Thomson Reuters Accelus
World-Check for sanctions and PEP screening
Accuity
Financial crime compliance and payment screening
Advanced Monitoring Capabilities
Our compliance systems provide real-time monitoring and comprehensive screening to ensure all transactions meet international regulatory standards and internal risk policies.
24/7 Monitoring
Continuous surveillance of all operations
Key Features
Risk Metrics
Multiple metrics for comprehensive risk capture and management
Stress / Scenario Tests
Comprehensive stress testing across various market scenarios
Credit Exposures
Continuous monitoring of counterparty credit risks
Liquidity Metrics
Real-time liquidity position and cash flow analysis
Position Limits
Automated alerts and controls for position management
Value at Risk (VAR)
VAR is used for risk allocation and measurement across the Group's trading positions, as is standard in the industry.
The company reports to the senior management various daily risk metrics and measurements. We recognize that no single metric can capture all risks effectively.
Daily Reporting Includes: