Risk management
Amaranth losses puts risk management in the spotlight
As well as spooking players in the natural gas markets, the $6 billion losses of multi-strategy hedge fund Amaranth have put the issue of risk management, and particularly capital-at-risk, under closer scrutiny than ever
Surveying risk management
How is risk management viewed in your company? Are there risks you would like to measure but don''t? Which methodologies are most commonly used? What should the discipline tackle next? Our latest survey reveals all
Antoine Halff
Antoine Halff talks to Oliver Holtaway about the pivotal role that political risk should be playing in energy risk analysis
Do energy hedge funds need cutting down to size?
Energy hedge funds have made public over $10 billion worth of losses in recent months, once again calling into question their impact on energy markets and raising concerns of systemic risk. Catherine Lacoursiere investigates
Using options theory for commodity spreads
Market risk for a real option asset can be effectively managed using a spread option model. Raymond Cheng and Walt Tyrrell demonstrate the enhanced risk-adjusted performance of optional refinery capacity with a historical back test
Risk management for LDCs
US Gas Distribution Companies, long experienced in managing volumetric risk, now face market risk, high commodity prices and credit risk. Matthew Frye looks at strategies to model these risks in aggregate
Hedge fund technologies
Energy markets continue to attract hedge funds - but, as recent high profile losses have shown, operating in them is challenging. Having the right trading and risk management IT is essential. Stewart Eisenhart reports
Risking it in Russia
When attempting to assess energy risk in Russia today, traditional methods of risk analysis are no longer sufficient; they mustbe accompanied by detailed political risk analysis, writes Robert Amsterdam
Accurate options pricing for all
SuperDerivatives has entered the energy world with big aims - to bring transparency and increased liquidity to options markets. Oliver Holtaway looks at the company model, and asks how big a splash it's likely to make
5% salary growth continues for energy risk execs
Salaries and total compensation for risk professionals at energy companies continued to grow at an average of 5% in 2005 over the previous year, according to the Professional Compensation Survey.
Vultures in Congo
Energy companies have long accepted a degree of country risk when investing in developing nations. But oil and gas companies now face a new threat to their international investments - and its origins lie closer to home. Andrew Derman, Andrew Melsheimer…
Kick-start for coal futures
Ice Futures and the European Energy Exchange have gone head-to-head in the latest attempt to kick-start coal derivatives trading. Oliver Holtaway investigates
Amine Bel Hadj Soulami
Amine Bel Hadj Soulami talks to Stella Farrington about his rise to global head of commodity derivatives at BNP Paribas
Delta hedging the load-serving deal
In this article Andrew Klingler takes a closer look at the residual risk when a load-serving contract is hedged with forwards. The residual risk components are described quantitatively and a formula for the minimum variance hedge is outlined
Jaime Roman, risk managing director, Endesa, Spain
Jaime Roman is chief financial officer and risk managing director at Spanish utility Endesa. Holding a PhD in Electrical Engineering, he was in academia before being approached to join Endesa in 1997
Valid Assumptions Required: Volatility
Brett Humphreys reviews the assumptions associated with calculating volatility based on historical data.