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Faces and Portraits

NKG Holding “who is who”: Risk Control Unit

Faces and Portraits

NKG Holding “who is who”: Risk Control Unit

Neumann Gruppe in Hamburg is composed of departments with a broad range of functions and expertise. These departments not only support NKG’s overall strategic direction but also offer tailored assistance to the group’s companies. In our INSIDE NKG MAG, we aim to examine what unique capabilities are present within the holding company, who might benefit from them, who holds responsibility for various tasks, and much more. In this issue, we shine the spotlight on the Risk Control Unit (RCU).

Meet the Risk Control team:
 Lyuben Chernev, Heidi Ühleke, Mauricio da Rocha Calado (f.l.t.r.)

It’s surprising to learn that until recently, this crucial department was staffed by only two people. The team has now grown to three, which still seems remarkable given the breadth of their responsibilities and the significance of their work. Let’s take a closer look at the RCU at Neumann Gruppe. Heidi Ühleke, who leads the team, brings over 30 years of experience in the coffee industry. She is joined by Lyuben Chernev, CFA and, most recently, Mauricio Calado, who together manage risk for the group.

Core Responsibilities of the RCU

So, what are the central tasks of the RCU? “The RCU monitors, validates, and consolidates risk exposures relating to market, credit, and liquidity risk,” explains Heidi. “For example, we deal with coffee-specific differential risk.” Many have heard about this term before, but it’s worth exploring further: The coffee differential refers to the price gap between physical coffee and exchange-traded futures. Influenced by supply, demand, quality, and origin, it often fluctuates independently of the main ‘C’ market price. Since it is negotiated between buyers and sellers and – unlike the market price risk – “non-hedgeable” with standardized financial instruments, managing this risk is particularly challenging and can affect costs differently. The RCU addresses these and other concerns about liquidity and market price fluctuations in close coordination with the Treasury Department team.

Legal Collaboration and Contract Management

In addition to managing financial risks, the RCU also plays a vital role in legal matters. The team collaborates closely with NG’s Legal Department. As Heidi puts it, she sometimes feels like “half a lawyer” herself: “We deal with contracts a lot, for example, contracts with banks or insurers. In doing so, the RCU often acts as a bridge between what the contract says and the reality of the coffee business. Sometimes it may only be one or two words that make a difference.” Ultimately, contracts must fit both the legal framework and the practical realities of the coffee industry to be enforceable.
The RCU is also deeply involved in trade credit insurance, bank assessments, and projects such as the Revolving Credit Facility.

The Coffee
Risk Report

Twice a week, the team compiles the “Coffee Risk Report” from data gathered worldwide and from a variety of sources. This report consolidates risk findings from group companies and forms the foundation for management decisions. As Lyuben explains, “Somehow, we have to incorporate data from Papua New Guinea to Seattle into our report.” The challenge is to make sure the report is ready every afternoon Hamburg time, which requires the team to be well-connected outside Hamburg and to communicate with colleagues across departments. The RCU works with all NKG export and import companies, engaging daily with traders, finance officers, and risk managers across the globe.

The team’s focus is always on validating the data. As Lyuben emphasizes, “It is essential to get data correctly. With wrong data we would make the wrong decisions.”

As global markets grow ever more complex, the RCU remains crucial for making sound, data-driven decisions every day. Whether it’s market volatility, contracts, or global data flows, with deep expertise, sharp judgment, and a strong team spirit, the RCU ensures that informed decisions remain at the heart of NKG’s coffee business.

Tasks of
Risk Control Unit (RCU)

  • RCU validates all kinds of risk exposure which refer to market-, credit- and liquidity risk
  • RCU consolidates the risk exposures at group level using an extensive management-reporting portfolio (coffee risk, consolidated futures/options/EFS-positions dashboard, receivables/payables exposure and ageing, credit risk, prefinancing risk etc.)
  • RCU supports our export- and import companies with reference to the coffee business as well as the colleagues from different departments in Hamburg
  • RCU facilitates and overviews the whole commercial credit insurance

Get to know the members of Risk Control Unit

Heidi_01_web

Heidi Ühleke,
Head of Risk Control Unit

Lyuben01_web

Lyuben Chernev,
CFA Risk Analyst

Mauricio_02_web

Mauricio da Rocha Calado,
Credit Insurance Specialist

What was your career path to the Risk Control Unit at Neumann Gruppe?

The beginning of my career was at a bank. I learned to be a banker. I was bored after three years. Mister M.R. Neumann himself offered me a job in the Treasury Department of Hanns R. Neumann. I changed to Bernhard Rothfos’ “Futures Desk” and from there back to the Treasury Department. In 1996, I organized the Risk Department at Bernhard Rothfos. And in 1999, I got an offer to join Neumann Gruppe. I love the coffee business, because it is never boring. 😊

Please describe your exact responsibilities and what you are in charge of.

I am responsible for the little team as team head. My function as risk analyst is to validate the risks and chances in our coffee business. I educate new colleagues around our coffee world. I support our CFO as well as the Director Finances. Sometimes it is a challenge to manage the high volatility in our coffee business.

What was your career path to the Risk Control Unit at Neumann Gruppe?

Influenced by some 90’s movies, books and video games I went for a master’s degree in business administration, and right after university I started my career in the capital markets world as a trader. Fast-forward - a couple of decades later: unlimited curiosity, continuous learning and the substantial experience I’ve gathered upon my path helped me leave behind the romanticized notions of my youth, open my eyes to the real world and start contributing to it. But to wake up (to reality) - you just need a good cup of coffee…or maybe six… per day, since I am cutting back.

Please describe your exact responsibilities and what you are in charge of.

As it also happens to be the case in life - I am primarily responsible for myself, and I try not to get in the way of my colleagues. I even sometimes help – for example by not only learning from my great boss Heidi, but also by trying to take the more technical and data-science related tasks off her shoulders. Cross-team projects and daily collaboration with colleagues from all over the world are both great experiences and fun (for me, not so sure about the others).

What was your career path to the Risk Control Unit at Neumann Gruppe?

I have been a banker since 2012 and most recently worked in factoring. There, I worked in accounts receivable management for nearly seven years. This involved resolving overdue payments with customers and reviewing our company’s trade credit insurance as well as numerous third-party trade credit insurance policies. There is always room for optimization when customers close new deals or contracts change over time. I am now with the Neumann Gruppe because I am looking for an exciting change of perspective in the green coffee service group.

Please describe your exact responsibilities and what you are in charge of.

I will be managing credit insurance Master Agreement. My main responsibilities include improving the utilization of insurance limits and helping trading companies provide optimal coverage for their customers. In addition, we plan to update the risk matrix in the future to provide a more current overview.

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