Industries / Oil & Gas

Energy Trading and Risk Management

Proactively capture, analyze and simulate market and credit risks

While oil and gas companies know that extreme price volatility is the norm, no one can predict exactly where prices are headed or when they will spike or fall. Reducing risk on each commodity is a challenging task, but the difficulty is magnified when using a different application to manage each different commodity and refined product. Trading organizations need real-time information and the analytic ability to make smart assumptions about all future transactions that will occur along a very extended value chain.

SAS provides energy trading and risk management (ETRM) solutions that let you proactively capture, analyze and simulate market information so you can minimize the impacts of severe price volatility, regulatory compliance and confusion caused by disparate systems. To learn more about how our ETRM solution can help your business, visit RiskAdvisory.

" Creating a holistic ETRM approach for understanding marketplace risks and the credit stature of counterparties affects how oil and gas companies operate up and down the value chain. The task is to consolidate risk measures into one consistent analytical picture that can inform business decisions."

— Louis Caron, RiskAdvisory

Risk Aggregation: Enhancing Energy Risk Management with Data Integration and Advanced Analytics

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How SAS® Can Help 

To operate successfully, upstream and downstream oil and gas companies need a solution that combines advanced analytics and superior data management, along with deal-capture capabilities for the full range of energy commodities and transaction types. With SAS, you can:

  • Centralize your risk modeling and reporting functions by consolidating exposures across business units and trading books – from a variety of disparate transaction and market data sources – into a common risk data store.
  • More easily comply with external regulations through internal ETRM policies that let you register critical proprietary algorithms previously stored in spreadsheets within a secure and auditable database that gives you the flexibility inherent in spreadsheets without the business control issues.
  • Reduce your reliance on spreadsheets and increase risk modeling and reporting activities by using powerful analytical and data management capabilities to conduct your operations holistically around commodity risk management.
  • Track current and potential risk exposures using advanced analytics to quantify and run exposure analysis metrics, including value at risk (VaR), earnings at risk (EaR), cash flow at risk (CFaR), gross margin at risk (GMaR) and potential future exposure (PFE) on your portfolios.

How SAS® Is Different 

SAS ETRM solutions streamline the process of deal capture, enabling quick and accurate assessment of market and credit risk. The same data is simultaneously available for scenario modeling and advanced analytics. With SAS, you get:

  • A complete risk management solution that:
    • Manages multiple commodity portfolios of any size or complexity.
    • Enables deal capture (any energy commodity, any transaction or trading in any region) and physical and financial position reporting.
    • Provides market risk and credit risk analytics – including an array of reporting options – that help risk managers monitor overall exposure.
    • Includes specialized features for crude oil, gas and electricity markets.
  • Superior data management capabilities, including a data model that is capable of storing all commodity trades and physical positions.
  • Domain expertise and in-depth industry knowledge derived from SAS and RiskAdvisory's long history in the ETRM market.

Related Products and Solutions

RiskAdvisory, a division of SAS

RiskAdvisory, a division of SAS, provides commodity trading and risk management (CTRM) solutions and business intelligence tools that enable organizations to proactively capture, analyze and simulate market and credit risks in volatile energy and commodity markets. Our innovative energy commodity risk aggregation and analysis (ECRAA) approach blends world-class risk analytics, modeling and reporting capabilities in an integrated framework, offering a holistic portfolio-wide view that enhances risk management and strategic decision-making.

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SAS® BookRunner®

SAS BookRunner provides organizations with the ability to proactively capture, analyze and simulate market and credit risks associated with energy commodity price volatility. Through an integrated energy trading and risk management (ETRM) framework, SAS BookRunner delivers a portfolio-level view to measure, manage and control energy risk. This front-to-back-office solution includes deal capture, data integration, advanced predictive analytics, compliance reporting and a full suite of sophisticated risk modeling tools.

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SAS® for Enterprise Risk Management

Enterprise risk management can help your organization get where you want it to go while avoiding hazards and shocks along the way. Only SAS delivers unified, quantitative risk management software that includes comprehensive data management, the most powerful predictive analytics available and user-friendly reporting.

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Call us at 1-800-727-0025 (US and Canada) or request more information.