Does your trade floor have a separation of powers?
Our Enverus team members focused on trading and risk always attend the Energy Trading Risk Summit to soak in the thinking and logic of risk analysts. It’s inspiring and fascinating to see the lengths risk managers will go to protect data integrity and implement mitigation strategies.
Now that we know market events like negative WTI prices are within the realm of possibility, pricing data integrity and a single source of truth in forward curve data management have become more integral than ever. Risk managers are tasked with identifying every risk and must maintain a mitigation strategy that is constantly updated and provided to executive teams.
With risk management as a priority during an ongoing hit to global oil demand and a global pandemic, we’ve seen energy traders emerging with a demand for automation and risk resilience tools to execute on complex trade ideas.
Risk managers’ roles go hand in hand with the implementation of new technology in the trade floor. As these professionals strive to implement the risk management culture throughout the entire company, they are fostering a culture of compliance.
I personally loved hearing the way these managers strive to see risk as an enabler, as a way of improving and bettering the company’s practices and values.
So, how do risk analysts take on the massive task of identifying every risk? And how can risk analysts managing forward curves for commodity trading firms implement appropriate checks and balances within the trade floor?
Enter: CurveBuilder, a web-based forward curve management system that is accessible from any remote working location.
Here’s a quick review of what we believe it means to democratize forward curve generation at Enverus:
- No technical coding skills required to build complex forward curves
- Complete audit trail transparency – track every change in the history of your curves
- All holiday calendars are equal – line up market holidays perfectly across geographies
- Traders and risk analysts alike can quickly create forward curves on the fly
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