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Navigating disruption: The CFO role in a volatile world
Stephan Jansma, CFO at Trafigura, discusses the evolving role of finance in commodities trading, how geopolitical shifts are reshaping financial strategy, and the attributes CFOs need today.
Finance at the heart of commodity trading
In commodity trading, finance extends beyond accounting and controls; it serves as a growth enabler, enabling operational agility and long-term strategic positioning. Unlike industries where the CFO office focuses on long-term asset investments, commodity finance revolves around sourcing, trading, and logistics. From securing liquidity to structuring deals that ensure long-term supply, finance plays a pivotal role in securing access to commodities, risk management, capital deployment, and supply chain optimization.
Trafigura has an equity base of over $16bn and access to around US$75bn of credit lines provided by a network of around 150 banks. “A traditional CFO will probably have 10% finance and 90% accounting,” explains Trafigura CFO Stephan Jansma. “My balance of focus is 70% finance, 30% accounting. That is unique to our industry.”
A physical trading model creates a financial structure fundamentally distinct from asset-intensive industries. Commodity traders operate with a highly liquid balance sheet, a significant portion of which is inventory and receivables. Unlike capital-intensive businesses that rely on fixed assets, for commodity traders, the flexibility of short-term financial arrangements is crucial.
“Eighty percent of our balance sheet is current assets – stock, receivables – while only 20% is fixed,” says Jansma. “That’s the reverse of most companies, which typically have a lot of fixed assets and a small portion of current assets.”
This structure allows Trafigura to respond rapidly to price movements, demand fluctuations, and geopolitical disruptions. However, it also requires access to scalable, diverse funding sources. The ability to raise financing across multiple jurisdictions is a defining characteristic of leading commodity trading firms.
For us, supply chain disruptions – whether caused by tariffs, sanctions, or extreme weather conditions – only increase the demand for our services.
Managing capital and liquidity in a high-stakes industry
Commodity trading requires significant capital, and CFOs must ensure that financing structures can absorb price volatility. For example, when oil prices surge, inventory values rise sharply, meaning an accompanying rise in funding requirements. A well-designed financial strategy provides both flexibility and resilience to support growth without exposing the company to excessive risk.
“Liquidity is super important to me,” emphasizes Jansma. “For instance, if the oil price goes from $70 to $140, our $22bn inventory becomes $44bn. I need to make sure we can continue to trade.”
This ability to scale financing dynamically is one of the attributes that distinguishes commodity finance from traditional corporate finance. It requires constant engagement with lenders, investors, and risk managers to ensure the business remains capitalized.
Engaging policymakers in uncertain times
Geopolitical disruptions in the form of tariffs, sanctions, regulatory shifts, or global conflicts can significantly impact commodity flows. But commodity trading firms use market disruptions as opportunities to reposition supply chains and optimize trading margins.
“If you take a step back and consider what we do – physical commodity traders connect consumers and producers through a global logistics network,” explains Jansma. “For us, supply chain disruptions – whether caused by tariffs, sanctions, or extreme weather conditions – only increase the demand for our services from customers.”
Recent geopolitical events have demonstrated how commodity traders must stay ahead of shifting regulations and policy changes. CFOs play a crucial role in ensuring that financing structures remain compliant while adapting to new market realities.
However, finance leaders must look beyond internal risk management to engage directly with policymakers and regulators, explaining how global supply chains function and ensuring that regulations are practical and enforceable.
“We regularly visit governments to provide guidance and understanding of the industry,” says Jansma. “For example, when governments are considering sanctions, we might engage with government offices to explain how they could be implemented effectively – and where they might not work.”
This proactive engagement fosters policymaking that supports global trade while maintaining compliance and financial stability.
The importance of transparency
As global regulations tighten and stakeholder expectations rise, financial transparency is non-negotiable.
“We were one of the first privately-owned commodity houses to publish an annual report in 2013 and a sustainability report in 2015,” says Jansma. “The sustainability report has come to be as important as our annual report, as transparency has become a [way to secure] strategic advantage.”
This shift toward transparency has not only strengthened stakeholder relationships but has also enhanced access to funding by meeting the evolving requirements of banks and institutional investors.
Building a CFO skillset
Thriving as a CFO in commodity trading demands a unique career path and skill set. Many finance leaders come from banking backgrounds, with a strong foundation in capital markets, structured finance, and liquidity management.
“I have the expected career path for a commodity finance CFO,” explains Jansma. “I’m not a registered accountant and spent 15 years in banking. That background in banking helps me understand how to raise and use money effectively to generate commodity flows.”
But finance acumen alone is not enough. Modern CFOs must balance IQ and EQ to manage complexity, drive change, and engage stakeholders effectively. “Once you get to Executive Committee level, you need management skills, but also leadership skills,” says Jansma. “The higher you rise in a company, the more balanced IQ and EQ become.”
The evolution of the CFO role is reflected in the close relationship between CFOs and CEOs. Many finance leaders now act as key advisers to the overall leaders, influencing broader business decisions and strategy.
“It’s a partnership where [CFOs and CEOs] challenge each other,” Jansma says.
“To adapt, you need to make tough decisions. The best teams are those with diverse skillsets and ambition levels.”
Driving change: The CFO as strategist
Finance functions must be as agile as the trading business itself. CFOs need to ensure that financial systems, compliance frameworks, and funding models can keep pace with every shift of global markets.
Going forward, adaptability will be the key characteristic of CFOs, who will have to navigate technological advances, sustainability regulations, and geopolitical risks while maintaining financial discipline.
“To adapt, you need to make tough decisions. The best teams are those with diverse skillsets and ambition levels,” Jansma says. “The right call is rarely the easy one, but I’ve never regretted making a tough decision,” he adds.
The CFO role sits at the heart of commodity trading. From securing liquidity to navigating global disruptions and shaping policy engagement, today’s finance leaders must operate with speed, insight, and adaptability. As geopolitical complexity and regulatory scrutiny increase, those who can balance financial discipline with strategic foresight will lead their companies to success in the coming era of commodity supply chain management.
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