the analysis in this paper raises the question of whether private information is communicated effectively in the German bank-based corporate governance system.implementing strong risk management practices such as thorough assessment and evaluation of risks associated with hedging strategies is essential.These financial difficulties facing the company led to the closure of MG's access to financing sources in the market and to counterparties in transactions as well as excessive hedging, this analysis indicates the belief that MG management's choices of contractual terms (such as lock-in options) and hedging ratio should have led to intensified interest among MG's stakeholders in obtaining first-hand information, Among the reasons for failure is also weak administrative performance and poor monitoring of ongoing operations.private and public disclosures by the Board of Directors regarding the management of exposure to risks carried out by MG's activities, It was only found that MG's public disclosures were limited and less informative, also the transfer of information was very limited, Also one of the reasons for the loss is that the company made long-term commitments and fixed its prices for a period of 15 years or more for each buyer and seller, the highest return occurred with the coincidence of the rise in the price of oil and the continuous rebound of the futures curve to backwardness, more than 800 million dollars were obtained through direct and indirect loans from the German parent company.regularly re-evaluating hedging goals and monitoring market conditions is crucial to ensure alignment with objectives and adapt strategies as needed.adopting a longer-dated futures strategy can help reduce rollover pitfalls.[7:57 ??