Risk Management:What Companies Must Know

Companies must understand threats before going into a market,said Chris Torrens,director of global risk analysis at Control Risks.It's just about mitigating against that risk.There's a clear security risk in many markets.The longer term risks may be less obvious to begin with.There's corruption and social risk of the need to work with local communities or face security risk.*
The challenge arises when you have unforseen events such as the crash of MH-17 in Ukraine or an ash cloud.We tend to be drawn to those areas where conflict occurs or is likely to occur.As a company,we focus on political,operational and security risk.Many companies are just used to the bad headlines.Different risks cause different problems for different companies.*
The risk environment feels at this moment to be around a 7.5 or an 8,but many of these are recurring,ongoing crises.Ukraine is a major worry,but it's about being prepared,Mr.Torrens explained.*
One example of a current European risk is the possibility that,if natural gas is shut off from Ukraine,Germany will run out of it in February.

Seeking Alternatives:Hedge Fund Insights

I still am expecting this market to crack,said Uri Landesman,President and Managing General Partner at Platinum Partners Multi-Strategy Hedge Fund.Anything to do with Europe,people are really scared.At some point,the Euro situation will clarify,and their equities are now more cheap than US equities.People probably should buy Euro equities.
It's a terrible risk-reward in the US market,in my opinion.Natural gas is getting clobbered again.It's very,very cheap.The Chinese will step in and try to buy assets.There will be significant Chinese purchases in the emerging markets even in 2012.Given natural gas trading in the 2.60s,that's very cheap for countries like China that are very short on natural gas.
Specific biotech companies are totally exogenous if they have an event coming up.If the US economic data come out significantly better,I would change my view on housing and lending.I think some of the industrial metals are interesting here.
We are still very bullish about China long term.The engine that is China will roar again in coming years,Mr.Landesman predicted.
Platinum Partners are affiliated alternative investment managers located in New York.In addition to hedge funds,they offer advisory services exclusively for qualified investors.Mark Nordlicht is Chief Investment Officer at the firm.

Nature Note:Seasonal Change

This morning I scheduled the fall furnace check-up.It's crucial for a natural gas appliance.A malfunction could mean an explosion-or at least higher energy bills.A few monarchs have been spotted.In recent years,their local numbers have been down.Perhaps their summer habitat was diminished greatly,their milkweed patches cleared for development.These migratory butterflies are on their way to Mexico,to the mountains outside Mexico City.
Maintaining a cold weather appliance;watching a wildlife transition:simple actions that signal the progress of seasonal change.

Gas Cartel Takes Shape

Qatar,Russia and Iran are well on the way to forming a natural gas cartel.Meeting in Iran recently,the countries intend to consolidate the largest gas reserves in the world as well as their general strategic interests,and cooperate on three-party projects.Two more meetings,to be held in Qatar and Russia,will finalize the agreement.The three nations own 60% of the world's natural gas reserves.The European Union is concerned about the cartel,since higher gas prices could result.As oil reserves dwindle,the cartel's natural gas reserves will increase in importance.

Nature Note:Cool Pattern

The Canadian air is back.I can leave the air conditioner off,saving on the electric bill.I am wondering if this pattern will persist into fall and winter.Regular surges of Canadian air would cause a cold winter.Of course,that would mean a higher natural gas bill.Last winter,we only got 15.3 inches of snow-or about 39 centimeters.The day is refreshing,but the economics of weather are not forgotten in its relaxation.