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Oil and gas
exploration and production (E&P) companies are increasingly
focused on risk management due to the constant rise and fall of
energy commodity prices. E&P companies can stabilize cash flow
volatility with a well-constructed risk management program,
which requires an energy risk software solution to identify,
measure, monitor and mitigate their exposure to price
fluctuations. An effective Energy Trading & Risk Management
(ETRM) solution allows an E&P company
to have easy access to accurate, real-time information in order
to make timely business decisions based on reliable cash flow
forecasts supporting capital expenditure decisions behind future
drilling initiatives.
E&P companies’ ETRM systems must be
sensitive to credit, counterparty and collateral requirements
while operating within the boundaries created by fluctuating
business cycles and a growing level of regulatory restructuring
that adhere to changing environmental standards for emissions
and impacts. New regulatory regimes, like the Dodd-Frank Act,
require new technology configurations and capabilities to create
the necessary transparency and reporting.
Taken together,
these risks demand a precise and reliable solution to identify,
measure and monitor exposures – and to generate the necessary
reports and audit trail.
RiskAdvisory’s
energy risk solutions provide those analytic capabilities,
either as an integrated suite or operating as independent
modules. From position management and “what if” trading
scenarios to data analysis and multi-currency integration, SAS
BookRunner provides the complete toolset for the oil and gas
trader and risk analyst.
Features include:
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Risk factor
modeling |
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Scenario & stress
testing |
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Delta-normal
Value-at-Risk |
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Monte Carlo
simulation |
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Cash-Flow-at-Risk
analysis |
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Portfolio
optimization |
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Current & potential
exposure |
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Liquidity
analysis |
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