March 2012 - Business Briefing Series: Where is the RM in ETRM?

21/03/2012

Lacima is delighted to introduce the first paper in its new Business Briefing Series. In this series, we intend to provoke your thinking on how the unique attributes of energy and commodities drive risk and valuation issues, and offer guidance for management on how to more effectively manage risks and increase profitability of their organisations in fast changing energy markets of today.

Is your organisation experiencing any of the following challenges?

  • Modelling market volatility
  • Complex portfolios combining physical assets and financial contracts
  • Consolidating risk metrics whilst going through mergers and acquisitions
  • Increased oversight in risk management by stakeholders

Energy organisations need to establish rigorous and disciplined processes to identify, measure and report risks and to ensure that they are utilising relevant market and credit risks metrics.

This paper discusses why most people find that the majority of ETRM systems alone are not sufficient to address the comprehensive risk and valuation needs of an energy organisation, the obstacles faced in attempting to overcome these deficiencies internally, and proposes alternative approaches for consideration.

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