Introduction

In the realm of modern enterprises, risk plays a pivotal role at the core of every organization. Despite its significance, many companies still prefer to leave risk management to fate, ignoring the imperative need to manage risks as dictated by regulatory and prudential management requirements. Risk can either be a potential for loss or contribute to underperformance. However, when properly understood and strategically managed, risk can propel an organization towards success and excellence. Risk management is essential across all operational stages, from regulatory adherence to strategic planning and project transformations. Effective risk management not only captures but also leverages value to foster a sustainable, performance-driven culture within the organization.

Course Objectives

• Construct and implement robust energy risk management frameworks and methodologies.
• Accurately identify, analyze, and quantify risks.
• Create appropriate structures for managing risks.
• Adopt and apply internationally recognized risk management practices.
• Discuss risk management confidently within the context of the energy sector.
• Understand and apply energy trading and risk management systems effectively.
• Explore the role of risk in fostering value creation and sustaining business growth.

Target Audience

• Managers
• Financial Managers
• Teams involved in Energy Strategic Planning & Investments
• Energy Transition Teams
• Operations Managers
• Purchasing Managers
• Risk Management Professionals
• Energy Analysts
• Project Teams
• Plant Operations Managers in the Energy Sector
• Marketing Managers
• Health, Safety, & Environment Personnel
• Professionals in the energy industry interested in risk management

Course Outline

Day 1: Introduction to Energy Risk Management

• Basics of risk and its management
• Standards in risk management
• Essential definitions
• Key factors for successful risk management
• Examining organizational attitudes towards risk (Risk culture)
• Structural considerations in organizations
• Roles and responsibilities in risk management
• Integrating risk with business strategy
• The influence of organizational culture

Day 2: Exploring Risk Categories

• Financial Risks:

• Market risk
• Credit and counterparty risk
• Liquidity risk
• Managing limits

• Operational risks
• Systemic risks
• Emerging and strategic risks

Day 3: Reporting and Mitigating Risks

• The concept of materiality
• Key Risk Indicators (KRIs)
• Crafting effective risk reports
• Strategies for risk mitigation and control
• Aligning risks with opportunities and business strategy
• Risk integration across the energy sector
• Accountability and ownership in risk management

Day 4: Implementing Risk Management Practices in Energy Businesses

• Comparative analysis of risk management across different sectors
• The strategic role of risk management in value creation
• Enhancing existing operational risk management frameworks within ERM
• Structures for risk accountability
• Advanced tools and techniques for risk management
• Coordinating risk management with compliance and regulatory frameworks

Day 5: Advanced Topics in Energy Trading

• Insights into energy trading: fundamentals and advanced concepts
• Comprehensive overview of energy trading and risk management
• Implementing and utilizing energy trading and risk management systems
• Technological integration in risk management frameworks
• The role of Enterprise Risk Management (ERM) systems
• Navigating complexities in energy trading
• Environmental, Social, and Governance (ESG) considerations: Emerging frontiers in risk management
• Future trends in risk management and value creation