Olam’s capacity to identify, capture, measure, monitor, manage and control various risks which confront the business, underpins its risk management competence and has enabled the company to scale and grow its business.
Olam’s activities in multiple geographies and agricultural products exposes it to a variety of political and market risks, including prices of commodities, exchange rates and credit risk. Olam has implemented a comprehensive risk management system to ensure that risk exposures do not lead to financial distress and that shareholders obtain a fair return on the equity risk capital.
While supply chain is the core business activity, Olam has a selective presence in upstream plantations and midstream processing segments. The company also participates in market making and volatility trading, provides risk management solutions and fund management through its Commodity Financial Services business. Olam has selectively deployed the best risk practices to measure and quantify the risks in these new areas of business.