Total Risk Management in the International Oil and Derivatives Market - TRM 

CPE Credits Awarded: 16
Categories: Trading, Derivatives, Hedging and Risk Management, Oil Industry, Oil Supply and Trading, Global Association of Risk Professionals (GARP) Approved Course

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Open date - Not scheduled. Please enquire.

Gold Course This course provides a comprehensive summary of the markets together with the techniques and range of trading instruments that are typically employed. The primary focus is the identification and management of the wide variety of risks that arise from the trading activity. The purpose is to enable delegates to design, critique and implement a control and monitoring regime within their own trading organisation; information from which could be utilised to report to senior management. Case studies are used to learn the techniques involved, which will be reinforced in syndicate groups where risk arising from a portfolio of positions is assessed.

Case studies will address each technique used in the management of risk. A continuous theme case study will also allow each syndicate to manage a portfolio of their own group positions. It is recommended that delegates should have attended TR1 or have a reasonable working knowledge of the subjects covered in that course.

The course commences with a recap of the markets and trading techniques, the instruments used, and the methodology of trading oil and derivatives. Within each trading area the risks are identified and available management tools are discussed in detail. The theory and mechanics of advanced instruments including swaps, CFDs, traded and OTC option are explained and the application of VaR in assessing a variety of risk is discussed in detail. Along with price risk, other areas of exposure will be addressed such as counterparty, credit exposure, trading limits and mark to market in-house position management.

Overall delegates are trained in the concept of identification, management and reporting of the total risk confronting their trading group.

Case studies will address each technique used in the management of risk. A continuous theme case study will also allow each syndicate to manage a portfolio of their own group positions.

Please note: a laptop and up-to-date version of Office would be an advantage in order to engage in market data; however it is not essential.

What you will learn

  • The oil trading markets covering physicals, forwards, futures, swaps and traded and OTC options
  • How to assess and monitor credit lines and use VAR in assessing a variety of risks
  • Trading methodology as it relates to the identification and management of price risk
  • How to structure credit and counterparty risks and implement a credit management programme
  • Operational and market risks
  • Futures, traded options, OTC swaps and options
  • How to monitor and confirm trading positions and calculate P&L by marking to market
  • Freight risk management
  • Use the forward and futures markets to manage price risk including the use of EFPs
  • Application of Value-at-Risk techniques to assess trading exposure and position limitss

Maximise your learning experience by signing on to a Diploma Programme for our Gold Level Supply and Trading courses. Click here for further information.

GARP rgbMennta Energy Solutions is registered with GARP as an Approved Provider of Continuing Professional Development (CPD) credits. Mennta Energy Solutions has determined that this program qualifies for 16 GARP CPD credit hours. If you are a Certified FRM or ERP, please record this activity in your Credit Tracker at

Trading managers and those managers to whom trading groups report, personnel responsible for monitoring and reporting the activity of the trading group to senior management within the organization and controllers, financial, back and middle-office personnel, compliance officers.

Introduction to Risk

Understanding the Oil Trading Markets

  • Physicals
  • Forwards
  • Futures
  • Swaps and CFDs
  • Traded and OTC Options

Design and Implementation of a Credit Management Policy

  • Counterparty evaluation/selection
  • Assessing and monitoring credit lines
  • Use of VaR is assessing credit lines
  • Market to market exposures
  • Performance risk
  • Financial security

Market Risks

  • Liquidity
  • Volatility

Exchange Traded Options and Futures

  • Risks and obligations of buying versus selling
  • The impact of margin funding on cashflow

OTC Swaps and Options

  • Risks and obligations of buying versus selling
  • The Impact of Margin Funding on cashflow
  • The use of Freight Forwards

Position Risk

  • Establishing trading limits
  • Monitoring trading positions
  • Market to market - P&L
  • Portfolio management
  • VaR - value at risk

Case Studies and Exercises

  • Price Risk
  • Hedging Risks
  • Arbitrage
  • Generating the Forward curve
  • Swap valuation
  • Option Valuation
  • Margin Risk
  • Freight Forwards
  • Use of VaR on individual and group positions
  • Use of VaR on credit exposure
  • Option obligations and exposures


DR IAN HOLDAWAY is an international consultant in the downstream oil industry and Partner / Technical Director of Cambrian Marine Reprocessing, a company specialising in the on-site reprocessing of contaminated petroleum and petrochemical cargoes. After graduating with a PhD in industrial chemistry, Dr Holdaway joined Esso working in Research, Marketing and Corporate Planning before transferring to Refining, where he was responsible for Refinery Operations Planning and subsequently Supply Logistics, where he was responsible for the management of import and exports to Esso's two UK refineries and the transportation of refined product to Esso's mainland marketing terminals. In this role Dr Holdaway was also responsible for product tanker chartering, including, when necessary, outchartering of Esso's five GP product tankers. After 11 years he joined J Aron, the commodity trading division of Goldman Sachs, where, as Trading Operations Director, he was responsible for all aspects of J Aron's International Trading Operations within the European and Far Eastern Offices.

DR CARLOS BLANCO is an expert in energy, commodity, and financial risk management and modeling. He has been a faculty member of Mennta Energy Solutions since 2004, where he teaches the Derivatives Pricing Hedging and Risk Management Certificate Programme as well as courses on Counterparty Risk Management and Gas and Power Trading and Risk Management.

He has published over 100 articles on financial, energy, and commodity trading, hedging and risk management. He is the founder and managing director of a risk management advisory firm with clients in North America, Europe, Africa and Asia. Carlos is a former VP, Risk Solutions at Financial Engineering Associates. There, he worked over six years as an essential contributor in the development of the energy derivatives valuation and risk management models of the firm. He also provided leading-edge risk advisory and educational services to over 500 energy and commodity trading firms and financial institutions worldwide. He also managed the world-class support and professional services department within the firm. Prior to FEA, Carlos worked for a hedge fund in the Midwest and an asset management firm in Madrid, Spain. He is a former regional director of the Professional Risk Managers’ International Association (PRMIA).


“Excellent presentations by both internal and external speakers.” M.D., ChevronTexaco

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Mennta Energy Solutions (formerly The Oxford Princeton Programme, Inc.) is not affiliated with Princeton University, Oxford University, or Oxford University Press.