Brno, Czech Rep, December 2010

CommodityPoint, the European energy industry analyst today announced that it is making available its white paper, “The Commodities Risk Management Challenge.”

Improving risk management processes and systems is a critical area of focus for many commodity trading firms. A wide range of stakeholders increasingly require more detailed information about trading activities, exposures and risks. This increased scrutiny is exposing many significant issues around both the processes and systems that are used to understand, manage and report on risks.

Unfortunately, solving the “risk issue” is not at all straight forward. Many, if not most, commodity trading firms have a significant number of, often poorly integrated, systems and many sources of “risk” data to deal with. This is exasperated by increased merger and acquisition activity which has resulted in energy companies conducting business in multiple countries and across multiple segments of the energy markets. Commodity traders who deal in physical commodities face further problems as commonly available risk analytics were often developed for markets other than commodities or commodity derivatives; they lack the specificity to deal with complex aspects of physical commodity trading and trade valuation.

In this white paper, Dr. Gary Vasey of CommodityPoint discusses the key areas where commodity trading and risk management systems are falling short, and proposes solutions for energy companies to consider to address these issues.

If you would like to download a copy of the white paper, please visit:

www.ctrmblog.com/reports-and-articles