This paper presents a comprehensive analysis of optimizing risk management in the oil and gas trading sector, emphasizing the importance of effective risk management in mitigating uncertainties and ensuring operational stability and profitability. The analysis covers various aspects of risk management, including market risk, credit risk, operational risk, and compliance risk. Key strategies include the use of financial instruments such as futures, options, and swaps to hedge against price volatility, advanced analytics and data-driven decision-making, and a robust risk assessment framework. The paper also highlights the importance of fostering a risk-aware culture and staying informed about regulatory changes to manage compliance risks effectively. Case studies from major oil companies, such as Chevron, TotalEnergies, ExxonMobil, and Shell, illustrate successful risk management practices. The challenges and solutions in risk management are discussed, including the need for continuous improvement and innovation. Finally, the paper provides recommendations for future directions, emphasizing the integration of advanced technologies, the importance of ESG factors, and the need for supportive regulatory policies and stakeholder collaboration. The conclusion underscores the critical role of optimized risk management in achieving stability and profitability in the oil and gas trading industry.This paper presents a comprehensive analysis of optimizing risk management in the oil and gas trading sector, emphasizing the importance of effective risk management in mitigating uncertainties and ensuring operational stability and profitability. The analysis covers various aspects of risk management, including market risk, credit risk, operational risk, and compliance risk. Key strategies include the use of financial instruments such as futures, options, and swaps to hedge against price volatility, advanced analytics and data-driven decision-making, and a robust risk assessment framework. The paper also highlights the importance of fostering a risk-aware culture and staying informed about regulatory changes to manage compliance risks effectively. Case studies from major oil companies, such as Chevron, TotalEnergies, ExxonMobil, and Shell, illustrate successful risk management practices. The challenges and solutions in risk management are discussed, including the need for continuous improvement and innovation. Finally, the paper provides recommendations for future directions, emphasizing the integration of advanced technologies, the importance of ESG factors, and the need for supportive regulatory policies and stakeholder collaboration. The conclusion underscores the critical role of optimized risk management in achieving stability and profitability in the oil and gas trading industry.