The major market upheavals of the past two years starkly illustrate the need for a holistic view of risk to counter the rapid emergence of unexpected external events. Remaining nimble in the face of extreme commodity price volatility, systemic credit issues and the collapse of large counterparties and market makers requires both enterprise-wide risk strategies and the Energy Trading & Risk Management (ETRM) solutions capable of helping risk managers and senior executives make better decisions faster.
Most energy and commodity trading organizations are confronted with an increasing flood of disorganized data from IT systems, market feeds, exchanges, accounting and scheduling systems. They attempt to manage this data with a range of disparate systems cobbled together from separate vendors over a period of decade or more. Not only does this approach limit their ability to successfully and accurately integrate data, it degrades the potential to perform advanced analytics and turn the data deluge into actionable information.
Forward-thinking companies have embraced a risk aggregation approach to this issue. Consolidating all data streams into a centralized data store, regardless of the data source, enables seamless interaction with any input, and allows a range of predictive models, reports and dashboards to be generated on the fly. The result is an increased level of analytics and insight that help companies manage their credit exposures, mitigate impacts of counterparty default and quickly react to major market shifts.
Join us to learn about:
- Determining enterprise-wide net exposure across multiple units, books and markets.
- Successful data integration strategies.
- Methodologies for market and credit risk aggregation: how much is possible?
- Creating a unified system for credit issues and understanding net credit exposure.
- Hedging and asset optimization: aggregating net exposure of physical and financial assets, including offsetting positions.
- Inappropriate aggregation and over-simplified netting.
- Correct methodologies and standards for aggregating risk.
- The value of Value-at-Risk metrics.
- Aggregating intangibles: reputational risk, corporate risk and message control.
- The Risk Grid: an approach to high-level calculations and complex model simulations for large, diverse energy portfolios.
James Goforth, Commodity Trading Risk Manager, Xcel Energy
Max Syed, Senior Manager, Energy Services, Sapient Global Markets
Louis Caron, Global Lead, Energy Commodity Risk Management, RiskAdvisory