Special series risk management reporting: Where's the 'RM' in ETRM?

Energy trading and risk management (ETRM) systems tend to have far better ‘ET’ than ‘RM’ functionality, a problem that will only be magnified by the move towards increased regulatory oversight, writes Chris Strickland in the third article of this series

The production, distribution, trading and hedging of commodities has long been a complex business. The larger companies that operate in this space do so in multiple physical markets, across multiple geographies and currencies, dispatch a range of physical assets, trade in various types of complex commodity contracts (power purchase agreements, tolling agreements, transportation contracts, virtual storage contracts and so on), as well as in standard hedge contracts. Increasingly, energy and