Quick answer: Risk management in physical marketing and scheduling addresses price and basis risk, volume and imbalance risk, counterparty credit risk, and operational risk — using contracts, buyer diversification, accurate scheduling, and controls to protect netback.

What risks arise in physical marketing?

Producers face price and basis risk, imbalance penalties from mis-scheduling, credit risk from buyers, and operational risk — all part of physical marketing and scheduling.

How are these risks managed?

Through disciplined contract management, accurate scheduling, buyer diversification, and credit controls — complemented by price hedging where appropriate.

Where does advisory help?

Advisors design controls and integrate physical and financial risk. Mobius Risk Group helps producers manage marketing and scheduling risk end to end.

Frequently asked questions

What is imbalance risk?

The risk of penalties when delivered volumes differ from nominated or contracted quantities.

How is credit risk managed?

Through counterparty screening, credit limits, and terms such as prepayment or collateral.

Can price risk be hedged here?

Yes — physical marketing is often paired with financial hedges to protect price.