Shell employs risk management systems for recording and valuing. There is standard assessment of authorized dealing restrictions by higher management, regular observation of market risk exposure using value-at-risk (VAR) techniques, daily monitoring of operating points against limits and marking-to-market of trading exposures with a department independent of traders reviewing the market values applied to trading exposures. All these methods ensure that Shell’s exposure to significant trading losses is carefully limited.
4.1 Economic Policies:
Economic policies are those that are shaped by the government from time to time and every organization has to comply with these policies. These policies are generally formulated for the purpose of ensuring that all businesses run in the same manner and act responsibly towards all its stakeholders including the community and environment as well. The sudden shift to renewable sources of energy has been the major challenge that Shell has had to face because this upsets the company since producing and manufacturing oil and related products is more and more becoming ineffective and inefficient and this is mainly Shell’s core business. Shell has obtained majority of its products from theMiddle Eastregion and there are quite a few international conflicts and dilemmas regarding ethics and labor in that particular area which are affecting Shell and its business. Issues like proper waste disposal in oil refineries are still a major issue that Shell has to face. Moreover, cross border products delivery adds to the total expenditure of fuel, diesel, gas and oil.