A capital adequacy primer

As part of its drive to introduce standardised best practices across the energy industry, the Committee of Chief Risk Officers (CCRO) is introducing a set of emerging practices that energy firms can use to measure capital adequacy. Capital adequacy has been a topic of debate for many years. By its simplest definition, capital adequacy is the availability of funds necessary for a company to meet its foreseen and unforeseen obligations – both short- and long-term. Capital should be la