Editor's letter - the importance of communicating hedging objectives
The importance of communicating hedging objectives
Managing a successful hedging programme involves more than prudent execution and careful monitoring of positions – companies should also be prepared to explain, both to investors and the media, the programme’s objectives, experts say.
All too often hedging ‘gains’ and ‘losses’ are reported in the mainstream financial press as headline figures with no context. For example, losses on derivatives are often publicised with no reference to the fact that physical fuel prices have dropped, offsetting
More on Risk management
Energy Risk reaction: Impact of Middle East conflict on hedging and longer term risk
Energy Risk talks to Riccardo Rossi at Centrica Energy and Rob McLeod at Hartree Partners about the impact of the Iran crisis so far on firms exposed to energy
Iran strikes a stress test for CCP margin models
CME’s Span2 and Ice’s IRM2 are performing as advertised. The next few days could test their mettle
Energy Risk Debates: the role of the risk manager
Panellists discuss the different roles of the risk manager, how much standardisation there is across firms and whether the role is ever clear
Interest in battery and flexibility soars in European energy markets
Energy traders are structuring bespoke contracts around Bess and flexibility that facilitate new ways of managing and sharing risk in this nascent market
Interview: Abaxx’s Joe Raia on LNG, Corsia and wind contracts
Abaxx’s Joe Raia talks to Energy Risk at E-World 2026 about the performance of its LNG and Corsia contracts and its latest wind contracts
Axpo interview: the rise of flexibility contracts in European power
Axpo’s Domenico Franceschino talks to Energy Risk about flexibility contracts, battery optimisation and the role of risk management in valuing these bespoke products
Energy firms revisit CTRM systems as tech advances
Energy executives mull how to tap into the explosion of new technologies entering the risk space, but systems selection must consider future business needs, writes Yefreed Ditta at Value Creed
CRO interview: Brett Humphreys
Brett Humphreys is head of risk management at environmental markets specialist Karbone. He talks to Energy Risk about the challenges of modelling outcomes in unpredictable times and how he’s approaching the risks at the top of his risk register
