Over at the Learning Corporate Finance Blog, I posted a new free online course on risk management within the Oil, Gas and Petrochemical. A short six session introduction to a risk management framework for the Oil, Gas and Petrochemical industry focused on managing crude oil
A short six session introduction to a risk management framework for the Oil, Gas and Petrochemical industry focused on managing crude oil price volatility. Master Class: A Risk framework for Crude Oil and Petrochemical industry: Short Course: Session I Master Class: A Risk framework for
Limits and Control process Risk models only have value if they are used effectively in combination with limit management and control process. While a control function requires and relies on reports, the key is not generation of quantitative numbers, formatted in ten different variation and
Hedging Example. Risk Metrics and Sensitivities A VaR based model can be extended to frame a number of questions for commodity consumers concerned about extreme price changes. For any change in price levels of a given commodity or a change in market level risk factors
This paper presents an extension of well accepted risk models in the financial services space to the risk management needs of the oil, gas and petrochemical industry in the region. We primarily extend the Value at Risk (VaR) framework and apply it to estimating refinery margins and inventory losses using crude oil price volatility as an input.
Good Data and a first look at models The second element in our list deals with data and models. While it is not directly visible in the risk mindset diagram above, when it comes to calculation of exposures, estimation of capital losses and allocation of
Risk Policy A policy document identifies roles, responsibilities and occasionally the outline of a process to review, set and evaluate limits. It is the source document that drives the behavior of the other seven components of a risk management framework and is generally approved by
A framework for risk management Any effort to create a framework for managing risk should start by asking the following questions What is the metric that we use for measuring risk? How frequently do we monitor it? How sensitive is this measure to changing prices