Training the tiger

Derivatives are finally beginning to gain wider acceptance in Taiwan, but senior executives remain wary, associating them with the collapse of Barings and, more recently, China Aviation Oil’s huge trading losses, finds David Hayes

Providers of risk-management solutions are eyeing Taiwan closely as interest increases in the country’s fledgling risk-management industry. Taiwan’s rapid economic expansion and increased demand for energy at a time of high oil prices has been the catalyst for much of the recent interest in energy risk management.

Although there are still some deep-rooted cultural reservations about the use of derivatives and hedging, risk management looks set to play a bigger role in the coming years in the