Risk management is the process of identifying, analyzing, and limiting loss.
The first step in managing your firm’s risk is to recognize the potential for loss in an investment or business practice and then to adjust your actions to reduce that loss. Limit your market price exposure as well as your clearing risk at CME Group, where the world goes to manage risk. At CME Group, we help firms manage their market price risk through our suite of futures and options products and their clearing risk by acting as counterparty to every trade.
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Clearing Risk Management
- By serving as the counterparty to every trade, CME Clearing becomes the buyer to each seller and the seller to each buyer, limiting credit risk and therefore mitigating risk of default. Our financial safeguards and operational standards provide an effective set of risk management tools.
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Price Risk Management
- By trading CME Group’s product suite of futures, options, and cleared swaps, firms are able to lock-in prices and avoid adverse market price moves. The establishment of prices in advance of purchases and sales enables firms to manage their costs, revenue, and ultimately their profit.
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