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Basic of Power Risk Management

Nivel 4

Risk-Managment-Phoenix-AZ.jpg
5 iunie 2025

This course is about the concept of energy trading risk management. Right management of  trading related risk can make the diference between a succesfull or disastrous deal. More then that, due to energy trading specificity where most of the transactions are with forward delivery, a correct risk hedging is esential in order to assure as much as possible a corect contractual performance.

Curriculum
 

  • Policies, methodologies and organisation of risk management

  • Risk appetite

    • risk tolerance and risk acceptance

    • risk & reward ratio

  • Market risk – Probability distribution curves

    • normal, log-normal & other distributions

    • skew, tail risk & one-time events

  • Price volatility

    • different types of volatility (e.g. historical & implied)

    • calculate volatility & how to interpret outcomes

  • Counterparty credit risk

    • external clearing and internal credit limits

    • collateralization & margining

  • Liquidity risk

    • trading activity in markets (or the lack of it) & the consequences for market participants

  • Alpha & Beta

    • capital asset pricing model of Markovich

    • market & company risk; systemic vs. non-systemic risk

  • Analyzing & Modeling

    • modeling of (energy) asset-related businesses

    • fundamental, technical, statistical & psychological analysis

  • Correlation & linear regression

    • statistical price relationships

    • Model risk, incl. normality & linearity+

  • Value at Risk (VaR) – The concept

    • quantification of risk; risk metrics

    • probability distribution, time horizon & confidence

Cost

  • 2600 lei/pers;

membrii AFEER:  

  • 1690 lei/pers

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