Risk management in vertically integrated energy companies

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There is no standard definition of risk management within the energy industry and many different views exist on the reach that a risk management function should have. The Energy Risk Glossary 2009 defines risk management as the “control and limitation of the risks faced by an organisation due to its exposure to changes in financial market variables, such as foreign exchange and interest rates, equity and commodity prices or counterparty creditworthiness”. We take a wider view of the risk

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