Capital calculations

h In September, the Committee of Chief Risk Officers (CCRO) released its newwhite paper Emerging Practices for Assessing Capital Adequacy. The paper notesthat, while capital calculations are widely used by banks, most energy merchantshave not implemented similar procedures. The paper goes on to describe analyticaltechniques energy merchants might employ for this purpose. More pertinent isthe question: why should energy merchants perform capital calculations? To gaininsight into this question

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