Operating Environment
An energy trading desk active in crude oil, refined products, and emerging electricity markets. Exposure includes price volatility, counterparty settlement risk, liquidity management, and regulatory reform.
The Challenge
Market risk exposure was not fully scenario-tested. Electricity trading reform created new uncertainty. Counterparty exposure lacked structured visibility. Hedging governance required strengthening. Reporting focused on transactions, not structural risk.
Trading Risk Workshops
Sessions were facilitated with trading and finance teams. Scenario modelling was conducted covering commodity price shocks, counterparty default, liquidity stress, and electricity price volatility.
Risk Register Development
A dedicated trading risk register was built. Market and liquidity exposure was embedded. Risks were mapped to financial statement sensitivity.
Control & Governance Review
Hedging controls were assessed. Counterparty approval processes were evaluated. Settlement oversight was reviewed and strengthened.
Formal Reporting
Structured trading risk reports were produced. Executive-level market exposure dashboards were developed for decision support.
Impact
Clear market exposure visibility was achieved. Liquidity governance was improved. Trading controls were rationalised, and executive decision support was strengthened.
About Energy Trading Entity
An energy trading desk active in crude oil, refined products, and emerging electricity markets, managing price volatility, counterparty settlement risk, liquidity, and regulatory reform exposure.
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