Financial Risk Tolerance at Turkish Commodity Exchanges

Abstract This study aims to make a comparative analysis over commodity exchanges with and without a sales hall to measure the financial risk tolerance of commodity exchanges. The study also identifies the risk perceptions of the commodity exchanges, the risks that may affect their activities in the next five years, risk strategies and instruments they use, and examines the relationship between risk strategies and instruments used. This study is important in the context of delivering guiding results for analyzing the risk awareness of the commodity exchanges and preventing the loss of registration fee, managing the resources of exchanges efficiently, improving the quality of the products and services offered and bringing together exchanges under the regional exchange to provide sustainable competitive advantage. Based on the findings, production risk ranks first and human resources risk ranks last for the risks regarding affecting the operations of commodity exchanges in the next five years. Financial risk tolerance levels of commodity exchanges are moderate. There is no significant difference between the financial risk tolerances of the exchanges that have sales halls and those that do not have a sales hall. Risk is often perceived as uncertainty. Analytical methods are not preferred in risk measurement methods.