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

CPE Credits Awarded: 8
Categories: The Natural Gas Industry , Other Energy Resources, Trading, Derivatives, Hedging and Risk Management, Oil Industry, Online Training, Oil Supply and Trading

Course Date Duration Venue Price Registration Deadline Register
02 Nov 2020 4 Days Globally Online - New York City & London Time Country: us
$ (USD)999.00
2 Oct 2020

UPCOMING SCHEDULE DETAILS:

2-5 November 2020 - New York City Timezone
Session 1: 2 November 2020 at 10:00am - 12:00pm EST
Session 2: 3 November 2020 at 10:00am - 12:00pm EST
Session 3: 4 November 2020 at 10:00am - 12:00pm EST
Session 4: 5 November 2020 at 10:00am - 12:00pm EST

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.

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, competitive quizzes, breakout sessions and much more!  See recorded demonstrations here.  The program will also include several self-study assignments to maximize the time with the instructor.

WHO SHOULD ATTEND?

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.).

MANAGER'S RETURN ON INVESTMENT

Upon completion of this course your employees will understand:

  • The sources of best practices for energy trading and risk management
  • Roles and responsibilities of the front, middle, and back offices
  • The key types of risks which need to be controlled
  • Various types of limits, and control mechanisms and approaches, for managing and controlling a variety of risks
  • The process for establishing and maintaining a best practice-compliant risk management operation and related control structure
  • Details of recent and important controls failures, including how and why
  • Regulatory requirements for trading controls and compliance

COURSE CONTENTS

Prerequisite to Session 1 Self-Study Assignments:  2.5 Hours Self-Study

  • Introduction to Trading Risk Control (2 hours)
    • Why is risk control important?
    • Key legal requirements for risk control
    • Groups involved in a trading organization (front, mid and back office) and their involvement in risk-taking and risk control
    • Major trading risk categories – market, operational, liquidity, credit, legal, reputational, systemic
    • How companies control specific risks
    • What risks can be measured and the tools used
    • An independent risk management function
  • Pre-class case study reading (30 minutes)

Virtual Instructor-Led Session 1:  2 Hours Live

  • Market risk
    • Different types of market risk
    • Measurement methods
    • Risk limits
  • Operational risk
    • Sources of operational risk
    • Mitigation techniques
  • Regulatory and legal requirements
  • Additional risks to control: systemic, liquidity
  • Discussion of key industry case studies (pre-reading for class)

Prerequisite to Session 2 Self-Study Assignments: 30 Minutes Self-Study

  • Pre-class case study reading (30 minutes)

Virtual Instructor-Led Session 2:  2 Hours Live

  • Developing trading and risk management controls
    • Risk management control structure and the chain of command
    • Risk tolerance
    • Understanding types of risk, and setting trading authority limits and procedures
    • Trading room controls
    • Effective risk management systems
    • Best practice guidelines
  • Regulatory and legal compliance
    • Key regulatory organizations and their requirements
    • Sarbanes-Oxley
    • Dodd-Frank Act
    • Other key regulations and their implications
  • Trader ethics
    • Definitions – market manipulation and misconduct
    • Shades of gray
    • Organizational perceptions
    • Ethics in energy trading
  • Discussion of key industry case studies (pre-reading for class)

Prerequisite to Session 3 Self-Study Assignments:  2 Hours Self-Study

  • Understanding the Value at Risk Concept (2 hours)
    • What is VAR?
    • The uses and benefits of VAR
    • Risk measurement and key VAR parameters
    • Choosing and using certain calculation techniques

Virtual Instructor-Led Session 3:  2 Hours Live

  • Market price risk management and controls
  • Foundations for risk measures
  • Risk modeling methods
    • Types of stress testing
    • Stress testing versus “at risk” measures
  • Price volatility issues
  • Application and strengths/weaknesses of value‐at‐risk
  • Other uses of value‐at‐risk
    • Risk adjusted performance measurement

Prerequisite to Session 4 Self-Study Assignments:  2 Hours Self-Study

  • Introduction to Credit Risk Management
    • The difference between credit risk and market risk
    • Internal credit risk ratings and agency credit risk ratings
    • Credit risk limits and the significance of breaching those limits
    • Management’s role in the credit risk management process
    • Portfolio-level credit risk monitoring
    • Key methodologies used to measure credit risk
    • Methodologies and products used to manage and hedge credit risk

Virtual Instructor-Led Session 4:  2 Hours Live

  • Credit risk management and controls
    • Calculating credit exposure
    • Portfolio credit risk measurement
    • Forward‐looking credit models
    • Determining credit thresholds and limiting exposure
    • Key measures of capital adequacy
    • Cash-flow-at-risk
    • Impact of margin on working capital
    • Capital adequacy framework
    • Key issues with credit and collateral annexes
    • Credit mitigation and use of credit derivatives

FACULTY

Mary Jackson has over 15 years of experience in the energy industry. She began her career at BP working in the information management group, then later rose to a trading analyst in the supply and trading department. She subsequently joined Saladin as an energy consultant to provide consultancy advice and training on energy market analysis, trading and risk management to clients throughout the world. 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, including the development of a new internet based trading system. After leaving Saladin, Mary worked as an independent energy market consultant until she formed Kingston Energy Consulting in 2002. She 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 and Power Risk Management, Global Energy Business and Petroleum Review. Mary obtained a bachelor's honours degree from Bristol University and a master's degree from London University.

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.

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