Case Studies/Energy Trading Entity
Trading & Market RiskEnergy Trading

How an Energy Trading Entity Achieved Clear Market Exposure Visibility

An energy trading desk active in crude oil, refined products, and emerging electricity markets built a dedicated trading risk register with scenario-tested market exposure and improved liquidity governance.

4Scenario stress tests
1Dedicated trading risk register
100%Counterparty visibility

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.

Ready to see similar results?

Start managing risks in minutes with Dimeri — no credit card required.