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Course Level
Intermediate
Delivery Method
Live Instructor-Led Virtual Course
Professional Development Credit Hours
12
Pre-requisites
Recommended: Fundamentals of Energy Futures or equivalent knowledge.

"Extremely applicable topic with an equally effective and knowledgeable instructor. I wish I would have taken it earlier in my role. I will be sending my entire team to this class!" Avista


Faculty

Nigel Harris is a director and principal consultant at Kingston Energy Consulting, which he founded with Mary Jackson in 2002. He has been helping energy traders to analyse and understand the markets for over 25 years, initially as a developer of market analysis software systems, and more recently as a consultant. At Kingston Energy Consulting, his main focus is on providing education and information transfer to participants in the energy trading business, through instructor-led classroom training, web-based training development, research projects, workshops, briefings and research-based report writing. In his work with Mennta Energy Solutions, he has created a library of new instructor-led and web-based courses on European gas and power markets and trading. In 2005, he worked with Mary Jackson to develop the popular Oil Trading Orientation course, which has since been presented at venues all over the world. He has also extensively revised and updated many existing courses on derivatives, hedging and risk management.  He regularly presents this material both at public venues and as in-house, often customised, courses. He is co-author of a series of highly regarded reports on European natural gas trading and has also contributed to reports on power markets and oil trading. In previous roles, he was a key member of the team that initially designed and developed Saladin's innovative Petroleum Analysis Workstation, a system that became an industry standard for historical price analysis during the 1990s and remained in use in the industry for two decades. During this period, he worked closely and extensively with oil and gas traders around the world to understand their information and analytical requirements. He also spent some years as an independent consultant, working mainly with software and information providers to help them better understand the oil and gas trading sectors.


Mary Jackson has over twenty-five years' experience in the energy industry. After university she began her career at BP, working in the information management group, before joining the Manufacturing, Supply and Trading department. She subsequently worked at Saladin as a consultant, working closely with clients throughout the world and providing consultancy advice on energy market analysis, trading and risk management. In several senior roles at Saladin, she managed the energy consulting team, ran the energy market information service and directed strategy for new software and information product development.

Since 2000, Mary has worked as an independent energy market consultant and she formed Kingston Energy Consulting with Nigel Harris in 2002. Kingston Energy provides consultancy services to companies involved in energy markets and trading. A key area of work has been the European natural gas market - Kingston Energy has researched and authored a well-respected report on European natural gas trading which has been published annually since 2004.

Mary has lectured regularly for Mennta Energy Solutions on energy markets, trading and risk management and is also a regular speaker and panel member at public conferences. She has written articles for industry publications including Harts Energy Markets, Energy Risk, Global Energy Business and Petroleum Review.


Accreditations

NASBA: Mennta Energy Solutions is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its web site: www.nasbaregistry.org


CPD Certification Services: The CPD Certification Service works with Mennta Energy Solutions to ensure valuable knowledge is structured to complement the universal guidelines of Continuing Professional Development. Mennta Energy Solutions courses are approved by CPD at one credit per training hour.

Front to Back Office: Trading Controls, Risk Measurement and Modelling (VIRTUAL) - FTBOEV


Course Schedule

Date Time Location Price* Registration Deadline**
18-21 Mar 2024
Register
8:00-11:00 (London) / 4:00pm - 7:00pm (Singapore)
Zoom: Europe to Asia-Pacific
USD 1,805 (FTBOEV-VILTAP24-03)
23 Feb 2024
15-18 Apr 2024
Register
10:00am-1:00pm (New York) / 15:00-18:00 (London)
Zoom: Americas to Europe
USD 1,805 (FTBOEV-VILTNA24-04)
15 Mar 2024

*Prices do not include VAT, GST, or any other local taxes. All applicable taxes will be added to the invoice.
**Please register by the deadline to help us ensure sufficient attendance and avoid postponing the course.


Course Summary

Front to Back Office: Trading Controls, Risk Measurement and Modelling is a VIRTUAL classroom course presented by the energy training experts at Mennta Energy Solutions that is open to the public.

This fascinating course will give delegates a thorough understanding of best practice controls to be applied in commodity trading activities. It also offers in-depth coverage of systems requirements, credit risk management best practices, risk and performance measurement, and a strong focus on capital adequacy issues. Subject areas covered include recent developments in regulatory and legal compliance, and ethics.

This virtual solution is comprised of four live instructor-led sessions hosted on state-of-the-art training software with video, audio, chat, live polls, breakout sessions and much more!  The program will also include several self-study assignments to maximize the time with the instructor.



Who Should Attend?

This is basic level course and there are no prerequisites.  Class delegates include everyone from support staff to management from trading, risk management, operations, accounting, credit, and contracts groups. This workshop is perfect for those concerned with "front office", "mid-office", and "back office" functions for international and domestic energy commodity companies (crude oil, petroleum products, natural gas, electricity and coal) and other commodities (grains, metals, etc.).


Course Content

  • Front, middle and back office functions
    • Key responsibilities in each area
    • Relationships between the areas, segregation of duties
  • Market risk
    • Outright, spread and options risks
    • Marking to market
    • Risk mitigation by hedging
    • Trading limits for market risk control
  • Operational risk
    • Scope of operative and operational risks
    • Factors that can accentuate operational risk 
    • Approaches to reducing operational risk
  • Other risk types 
    • Credit risk, liquidity risk, legal, compliance and regulatory risk
    • Systemic risk, reputational risk
  • Risk management implementation
    • Identification and quantification of risks
    • Establishing policies and risk appetite
    • Choosing and implementing risk systems
  • Regulation of trading
    • Regulatory regimes for exchange, OTC and physical trading
    • Regulatory authorities in North America, Europe and elsewhere
    • Major US, EU and international regulatory regimes
  • Trading ethics
    • Government and corporate objectives in trading constraints
    • Speculation, insider trading, market manipulation
    • Rogue trading and key failures
  • Foundations for measuring risk
    • Basic theoretical frameworks
    • Modeling Price distributions and movement; behavior of energy prices
  • Value-at-Risk
    • Definition and key characteristics of VaR
    • Using VaR in risk control
    • Choice of holding period and confidence interval
  • Volatility and correlation
    • Implied and historical volatility
    • Volatility term structure and the volatility surface
  • Estimating Value-at-Risk
    • Parametric, historical simulation, and Monte Carlo approaches
    • Strengths and weaknesses of VaR
  • Stress testing
    • Approaches, including sensitivity and scenario analysis
    • Potential pitfalls
  • Liquidity risk
    • Sources and implications of liquidity risk
    • Liquidity-adjusted Value-at-Risk
  • Setting risk limits
    • Approaches to setting VaR limits
    • Other market risk limits in trading
  • Credit risk
    • Key concepts (default, exposure, etc.)
    • Creditworthiness and its assessment
    • Approaches to credit risk mitigation
  • Measuring and modeling credit risk
    • Credit risk distributions, expected and unexpected loss
    • Estimating credit exposures for contracts and portfolios
  • Quantifying operational and other risks
    • Qualitative and quantitative analysis approaches
    • Tools for risk assessment
    • Banking regulatory approach to operational risk
  • Risk analysis beyond the trading floor
    • Risk-adjusted performance measures
    • Assessing economic capital requirements
    • Banking regulatory approach to capital adequacy
    • Applying VaR methods to corporate earnings and cash flows


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