Risk Management

Digital Risk Management System

Risk management is an essential part of Handysize Chartering Pool corporate DNA. It is fundamental in all our operations. More than a set of systems and models, risk management is a way of thinking that permeates the organization from top to bottom and across departments. A decision is always considered on a risk-adjusted basis. Our risk management infrastructure is continuously updated to remain relevant to the current risk environment.

Relationships are crucial for our business. Handysize Chartering Pool depends on our customers and tonnage providers to maintain and develop our large and diversified trading pattern, and we are always working hard to strengthen and grow our customer base.

The risk of working with you will determine the value of the service we give you. The levels we use in determining the risk ratio of the vehicle are as follows.

Low-Risk Levels

In this level of risk, we act as shipbroker for spot dry bulk markets. Here we serve as a broker between the Shipowner and the Charterer. At the same time, we provide you with reliable customers, and we inform you instantly through the platform in all operations.

Medium-Risk Levels

Tonnage Chartering, we define as Medium-Risk services which book vessels instead of clients with guaranteed Freight indications on the platform. Handysize Chartering Pool books shipment at this risk level with The Freight Exchange guaranteed indications on vessels. Handysize Chartering Pool also carries this service as a disponent owner for your cargo to our T/C operation. According to market conditions, we can relet shipment to a reliable operator. According to the terms of the day, we are moving towards the satisfaction of our customers.

High-Risk Levels

Handysize Chartering Pool is ensuring the entire risk by playing on FFA trade. In this way, they can fix vessels at low-risk levels without being affected by volatility in the market. Handysize Chartering Pool strongly recommends FFA trading to customers. It is the safest way to protect from any imbalance that may occur in the market.

Risks we manage

Conduct Risk

Handysize Chartering Pool defines conduct risk as the risk of improper, unlawful, or unethical behavior or action that may have a negative impact on Handysize Chartering Pool’s clients or counterparties or the fair and effective operation of the markets in which Handysize Chartering Pool operates.

Conduct risk may arise inadvertently or deliberately in any of Handysize Chartering Pool’s activities or businesses, both Physical Freight and Hedging.

The Freight Exchange designed to the highest standard of maritime ethics practice. To keep our credibility at the highest level, system users should first get approval to use our membership community. We have priorities such as reference, insurance.

Market Risks

Handysize Chartering Pool is also exposed to the correlation of market prices and rates within and across markets. Spot tonnage markets involve a continuous risk. The possibility of having fewer ships in the loading zone causes the freight to rise unexpectedly. As well as a seasonal upsurge in global markets and volatility in fuel prices.

Handysize Chartering Pool protects himself against an unexpected rise in the market and bunker rates with FFA on Hire and Bunker Prices. This strategy support company credibility against any losses on particular shipments. Handysize Chartering Pool has long favored transparent scenario analysis over complex statistical modeling as the cornerstone of risk measurement.
The risk of loss from incorrect or inappropriate Freight and hedging models is mitigated by the requirement for all new Freight models to be independently tested by the specialist Quantitative Applications Division within The Freight Exchange.

Operational Risks

Handysize Chartering Pool defines operational risk as the risk of loss resulting from inadequate or failed internal processes, people or systems, or from external events.

Handysize Chartering pool uses insurance products against unexpected situations fail on payments or during operations, sailing. The products we use for insurance are Freight, Demurrage, and Defense (FD&D) Insurance and Charterers Liability Insurance.

If there is a foreseeable risk, our brokers and operations staff will protect you from any kind of risk that may arise by warning you on time.

Cyber and information security risk

Cyber and information security risk is the risk of accidental or intentional unauthorized use, modification, disclosure or destruction of information resources, which compromises their confidentiality, integrity or availability. It also includes the potential for a threat-source to successfully exploit a particular information system vulnerability.

Handysize Chartering Pool continues to invest in frameworks, policies, procedures and technical capabilities, to ensure we protect the confidentiality, integrity, and availability of our data and systems.

Our strategy includes:

designing IT security to enable a safe and scalable business
protecting our data and preventing cyber issues
detecting and analyzing cyber threats and incidents
business awareness and staff education.