Risk management
Energy trading primer
Chris Bowden says large industrial and commercial buyers could learn from energy traders’ experiences in dealing with volatile energy markets
Softly, softly in the western US
Wary Californian power traders have reverted to tried-and-tested trading strategies. But, asks Catherine Lacoursière, will the new, apparently stable market hold up to another long hot summer?
What’s the worst that could happen?
Brett Humphreys discusses how using a standard credit value-at-risk measure may be misleading for credit risk decisions
The software needs of the credit-wary
After a difficult year that shows few signs of getting any easier, it looks like every energy company needs an effective risk system. The software vendors hold the key, but what do energy players need, asks Joel Hanley
EPRM’s list of software vendors and selected client firms
As we have done in previous years, EPRM asked all the companies in this directory to provide a list of their clients. While some have too many to provide an exhaustive list of them here, others have preferred to name a select few or just the types of…
Enel waits on liberalisation
While Italian energy major Enel Group has systems in place to manage its individual market risks, it is delaying any decision on enterprise-level risk management software until Italy decides how it will proceed with energy liberalisation, finds Clive…
Techno prisoners
IT disasters can bankrupt companies, so software vendors should be available 24-7. But often mergers and sales mean the software supplier no longer exists in its original form. What can the buyer do then? Joel Hanley reports
APB Energy’s winning formula
Kentucky-based APB Energy is one of the leading energy brokerage firms in North America. It has maintained its growth despite Enron fallout, perhaps due to its diverse range of services and locations. Kevin Foster reports
The value of volatility
Brett Humphreys and Tim Essaye seek out the best method for calculating volatility by comparing different measures, and find that complex approaches aren’t necessarily the best ones to use
Building a bridge to Var
Value-at-risk (Var) is a technique often applied to the energy industry. But there are limitations to its use. Here, Leslie McNew aims to bring these limitations to light, and thereby give practitioners confidence in the use of Var
Rating agencies raise the bar
Confidence in energy traders has never been lower, and the metrics the rating agencies apply to their business are changing. James Ockenden assesses the damage
Tools for the trade
Ken Nichols examines the mechanisms available for incorporating credit risk management into an energy company’s portfolio
Avoiding over-exposure
Eurof Thomas finds the European energy market is increasing its focus on credit risk mitigation in the wake of Enron’s demise
Higher or lower?
Kevin Foster looks at how credit rating agencies assign a rating to companies in the energy sector and what kind of factors are taken into account