Natural Gas & Electricity Trading

Market Risks & their Operational Management

GER/GET

Who should attend?

  • This training provides participants a global and synthetic view on the risk management of the various trading activities of gas and electricity.
Audience :
  • All managers who need to learn the ways of managing risk in the market of natural gas and electricity.

Level : Proficiency

Course Content

  • MARKETS

      • Main features of gas and electricity markets.
  • RISK MANAGEMENT

      • Basic statistics.
      • Risk typologies:
      • Credit risk.
      • Market risk.
      • Operational risk.
      • Value at risk.
  • HEDGING & MODELING

      • Nature.
      • Products:
      • Futures, forwards, swaps, options.
  • CASE STUDIES

      • Compute sensitivities on a gas procurement contract.
      • Compute the V@R of the contract using Monte Carlo and parametric methods.

Learning Objectives

  • Upon completion of the course, participants will be able to:
  • assess the risks associated with each phase of the gas trading and electricity,
  • understand the different hedging tools of the financial markets and assess their efficiency and limits,
  • put in place means of detecting, measuring and controlling the risks through a proper trading organization (procedures, segregation of duties),
  • implement control measures, including market risk and credit risk.

Ways & Means

  • Case studies and examples.