Risk Aggregation: Enhancing Energy Risk Management with Data Integration and Advanced Analytics
Posted: 15 September 2010 | Source: SAS
The unprecedented speed and economy-wide reach of the market’s last major credit event require prudent companies to prepare their energy trading and risk management (ETRM) systems today as though the next credit crisis is imminent.
Ideally, the energy company challenged by today’s low liquidity or tomorrow’s looming crisis will seek out technology solutions that aggregate in a single platform all available data from counterparties, markets, prices, volatility, credit risk reports, receivables and potential future exposure. Integrating data enables risk aggregation, facilitated by embracing high-performance computing for real-time number crunching of billions of data inputs. With such a system in place, a company can react quickly and appropriately to the next crisis, whatever it might be, whenever it might come.