Storage Logistics LLC
LBL Shipping & Tanks

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Risk Management

Storage Logistics LLC has a robust risk management framework and control environment in place to mitigate the inherent risks of trading to a tolerable level for the organisation and the appetite of Storage Logistics LLC's shareholders.  The shareholders and Board of Directors set risk appetite through:

    ~ A group economic capital limit.

    ~ Portfolio risk limits for different risk classes.

    ~ An approved risk limit registry comprehensively documenting active trading mandates.

The risk management framework at Storage Logistics LLC contains a suite of risk management policies, procedures and delegations. We rigorously apply the following key principles:

   ~ Compliance with all relevant risk policies and limits are monitored daily by the risk management function.

   ~ We act on breaches of policy and employ strict escalation procedures to ensure that both Storage Logistics LLC and the businesses it operates in are adequately protected.
   ~ We ensure management have sufficient timely quantitative and qualitative information regarding the risks within the businesses through daily, weekly and monthly risk reporting.

   ~ We appraise risk in our transactions and wider business activities on an on-going basis to ensure that actions are taken to address any changes in the risk profile of the group.

Through day-to-day trading activities, Storage Logistics LLC assumes commodity price risks.

Residual basis risk assumed is managed within approved limits. Storage Logistics LLC takes a very prudent approach to counterparty credit risk. Limits are assigned by the credit function for all trading counterparties, supported by additional concentration limits across the portfolio.

First class security or adequate risk cover is our priority, ensuring the risk of significant financial loss is negligible.

At Storage Logistics LLC we have a structured and risk aware approach to conducting business, acknowledging the inherent challenges present in the industry in which we operate. Combined with the depth of expertise and experience within the company, this allows for effective management of exposures, resulting in a reliable and trustworthy trading partner for our counterparties.

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