2 Questions You Should Ask to Ensure Your Portfolio is Primed for 2019

2 Questions ImageFrom ongoing supply/demand balance changes, to trade war threats, to natural disasters – and everything in between – 2018 has served as a reminder that anything can happen at a moment’s notice, exposing commodity businesses to risk. This uncertainty has sent companies in search of new ways to remain competitive in an ever-changing global market.

As the year comes to a close, we want to provide you with some strategic commodity trading and risk management (otherwise known as CTRM software and ETRM software) questions that can help you ensure your portfolio is ready to take on the uncertainty 2019 is sure to bring:

1. How do you keep your bottom line from suffering the human error element?

A recent Commodity Technology Advisory survey found that 68 percent of commodity trading companies know of at least one incident where a spreadsheet created operational or financial issues for their company. Of those companies ComTech surveyed, at least one cited an incident where a spreadsheet caused a $2 million error, which was traced back to the replacement of a cell formula with a fixed value. That’s a lot of money to lose for a seemingly small error.

The reality is, when your business relies on spreadsheets or other manual processes for commodity trading and risk management, you are 1) exposing your portfolio to unnecessary risk and 2) spending valuable resources on manual processes that should be automated.

So, how do you protect your margins from human error? We’re glad you asked! Allegro’s enterprise CTRM and ETRM software can help eliminate those manual processes with real-time, automated portfolio management capabilities that will offer your business greater controls, improved data management, and enhanced visibility across your entire portfolio. An added bonus: our software is cloud-ready and can be used to speed up implementation time, provide full redundancy to ensure successful disaster recovery measures, and/or allow you to move production to the cloud.

2. Are you wasting valuable data?

We get it; this question may be daunting. After all, Forrester reports that between 60 percent and 73 percent of company data within an enterprise goes unused, despite the fact that more companies are talking about big data and using technology to capture more data.

The volume of data in the world is growing at an unprecedented rate, and many businesses are mastering the art of data collection. For example, a number of companies are now using equipment to record vast volumes of sensor data. But, as research shows, many of them are missing this next critical step: properly analyzing that data and applying technology that can help them use data findings to optimize their portfolios.

So, how do you maximize the data available to your business? Research has shown that 94 percent of commodity businesses believe advanced analytics are key to future growth. Today, companies that want to maintain a competitive advantage in commodity markets are investing in advanced analytics in conjunction with enterprise CTRM and ETRM software. Advanced analytics can help you decipher what your data means, providing you with enhanced decision-making capabilities and ultimately giving you the power to take greater control of how your business grows.

Allegro Analytics, powered by Financial Engineering Associates (FEA), is the leading provider of risk analytics software for traders, risk managers, and quantitative analysts. We offer a full suite of comprehensive analytics tools in conjunction with world-class analytical support provided by seasoned Ph.D. industry professionals.

The Bottom Line: If you feel uncertain about your answers to one or both of these questions, we understand. But today is the day to change that. Contact us today to learn how Allegro can help you ensure your portfolio is primed for the new year with automation and advanced analytics capabilities.

 

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