Risk and risk safeguards
The 4-eye-principle is applied consistently. Not only is there a separation of Trading and backoffice, but also of the trading sector and logistics, whose processing is based on each other´s data. Every trade in the system is visible for everyone involved.
The risk in an increased number of deals?
All trades are transparent. Deals are concluded for the demand of the company or to cover the ability of the buyer to deliver to his final customer.
If a company is trader only, i.e. it does not receive physical delivery of goods, a cover should exist between purchase- and sales contracts.
If, for example, for deliveries by seagoing vessel the delivery period is two months, the flow of goods has to be optimized in this period. If over-capacities are realized at a certain time, goods have to be sold. In case of later additional demand, this will be covered by new purchase contracts. The flow of goods can be optimized through Commodities@icm and therefore the ability to deliver at the right time frame can be secured. Thus the risks of delivery and price as well as storage cost can be minimized.
No system can prevent misuse. How is Commodities@icm secured against misuse?
Each deal is entered into the system. The integration of all areas into SAP very quickly shows any differences in volumes. Deals closed by telephone are additionally confirmed in writing and are processed by the backoffice (not the traders). Additionally, there is the possibility to permit large contracts only by authorization of an additional person. Further manual processing of a contract which is already entered into the system is not permitted. Incoming goods can only be booked against a purchase contract. Issuance of the final invoice is initiated by the release of the closing analysis, not by the trading department. Payment is made by order of the audit department. There the payment amount of the incoming invoice is checked against the values established in the system.