WHAT IS RISK MANAGEMENT?
Risk management is a set of tools that help limit exposure to price swing by using physical or financial contracts to shift risks to others who are more comfortable with this price swings. Risk management includes physical options ( buying gas at fixed price) or financial options (futures, SWAPs, options etc.)

Sunrise Propane Industrial Gases is knowledgeable and active in all areas of risk management and ca help businesses manage the volatility of propane prices. We want to take all your worries about the volatility of propane prices away so you can concentrate on growing and managing your business.

HEDGING VS SPECULATION
While Sunrise Propane is active in risk management, we are not active in speculating on the markets. We are active in hedging and will not recommend to customers whether they should buy or not buy. Customers constantly ask us what to do and if we knew where energy prices were going, we would be sitting on a beach somewhere. The bottom line is that there is a major difference between speculating on the market and hedging

Hedging
Used to reduce risk and manage margins Reduces the fluctuations in propane prices for retailers and end users Used to “back to back” sales to residential/commercial customers at a fixed profit margin. An important part of managing and growing your business.

Speculation
“Betting” the market will move in one direction Retailers have bought product on fixed price but charge market based prices to their customers Speculation increases risk and creates uncertainly on retail margins Can literally put out of business

TOOLS FOR HEDGING/RISK MANAGEMENT
There are several tools that are available to hedge against rising propane prices. Sunrise Propane Industrial Gases does not have a black and white program that customers are forces to use. We will design the program that fits your needs and goals.