Risk management
Quantifying technical analysis
In the last of our series of tutorials on risk management tools, Richard Weissman provides an overview of technical analysis for the energy business
At the end of the tail
When fat tails are present, extreme value theory provides a framework for estimating value-at-risk at higher confidence levels with greater accuracy than traditional Var methods. Naveen Andrews and Mark Thomas explain
Covering the threat
Since September 11, energy companies have had to re-assess the threat of terrorist attack. Despite the insurance industry introducing new terms and products, some companies remain unprotected, as Joel Hanley discovers
Building blocks for complex probability distributions
Brett Humphreys demonstrates how to construct more accurate return distributions and use them to price options
Counterparty concerns
Following the California crisis and the fall of Enron, energy firms are finally paying more attention to credit risk. Here Fred Cohen, Satyan Malhotra and Rafael Cavestany present some overarching issues senior management must address in implementing an…
Dealing with price risk
FAME Information Services outlines the main issues currently affecting power prices and looks at how companies should be covering themselves against the risks posed by the continuing process of deregulation
Navigating a troubled road
Don Stowers finds the online energy trading market place as competitive as ever, with several new platforms ready to enter the fray
Hedging ahead
Continuing our series of tutorials on risk management tools, Dan Rowe looks at how physical positions can be hedged with exchange-traded futures and options contracts
Growing quietly
The liberalised German markets now allow large industrial end-users to manage their energy price risk. But, while the competition to manage their exposures is large, these firms are playing their cards close to their chests, reports Joel Hanley
Clearing the way?
The German over-the-counter market has been growing quickly in recent years, but a series of shocks has sparked fears of credit risk exposure. Can trading regain recent highs and save the OTC market from credit-wary traders, asks Joel Hanley
Controlling power
Maggi Shippy-Ksionsk and Stefan Ulreich explain how portfolio risk management gives a company control over its energy procurement
Knowing your limits
Value-at-risk limits are widely used risk management instruments. But issues over the allocation of Var limits remain, says Brett Humphreys
Not just a quick fix
Real options are an accepted risk management technique in the energy sector. Kevin Foster takes a look at how are they being used and what factors are affecting their development and implementation
When the wind doesn’t blow
In light of the increased interest in investing in renewable energy following the publication of the EU renewables directive in September, David Pethick, Rebecca Calder and Chris Clancy suggest a method of reducing wind risk
