Managing extreme volatility in commodities

The persistent volatility in energy and commodity markets in recent years is bringing more banks and trading houses back into these markets, but new ways of managing the risk are now required, says Valerie Fontaine-Aubry, Amer head of market risk practice at Murex. 

In this interview with Energy Risk, she discusses the need to manage risk holistically, the demands that puts on technology infrastructure and the areas in which artificial intelligence is likely to deliver most for risk management.

00:13 — Volatility across energy and commodity markets has become structural rather than episodic. What does that mean for managing risk?

2:27 — Power and gas markets are often considered tough to manage and hard to support – why is that?

4:04 — Where do firms most often go wrong when it comes to modernising their infrastructure?

6:45 — Is technology architecture itself becoming a source of risk?

7:59 — Where is AI delivering actual value today in pricing and risk?

9:30 — What are you seeing when it comes to the metals market, and especially precious metals?

10:50 — What is the toughest problem the industry hasn’t solved yet?