Design a risk-adjusted hedging policy for [Company] across key lanes and fleets over [Hedge_Horizon]. Map exposures to [Fuel_Indices] and quantify basis risk, margining, and credit constraints. Propose hedge ratios aligned to [Risk_Appetite] and a liquidity cap of [Liquidity_Limit] in [Currency]. Stress test against price spikes and demand shortfalls; define governance (limits, approvals, breach responses).
Output format: 1) Summary. 2) Table: Month | Exposure (units) | Benchmark | Proposed Instrument | Hedge % | Cash Flow at Risk | VAR (95%) | Liquidity Usage. 3) Policy statements: objectives, instruments allowed, limits, reporting cadence. 4) Exception playbook for volatility regimes.