Risk Management

Risk ManagementEnergy trading market participants, trading in both physical commodity markets and financial derivatives markets, encounter a variety of risks and exposures in the marketplace. These exposures are not limited to underlying price volatility, but include credit, market, regulatory, legal, and cash flow risk. In order to define, control, manage and report these exposures in a manner consistent with their financial and operational goals and objectives, we help our clients create and maintain a robust risk management function.

Kolobara Law Firm utilizes our extensive in-house experience to assist our clients’ middle office personnel with identifying, quantifying, and managing a variety of trading and hedging related risks. Our approach is to reconcile the company’s appetite for risk with the best industry practices related to risk management.

Kolobara Law Firm can assist market participants with effectively evaluating a clearly defined appetite for risk, from a corporate viewpoint, including the exposure and position limits, stop loss limits, approved trading strategies and products, as well as regional markets. Also, we help our clients define and manage a clear directive and authority governing the trading and exposure management activities. Miki Kolobara, our founder and managing attorney, has drafted and implemented risk management and trading policies and procedures for several energy companies.

Energy market participants need to ensure that there is a clear segregation of duties on the trade floor including up-front deal flow analysis, independent monitoring including independent valuations, price curves, models, stress testing, and effective reporting. Kolobara Law Firm offers extensive in-house expertise assisting middle office professionals with legal and compliance aspects of enterprise-wide risk management. We also offer guidance with transaction analysis, price modeling, system input, internal evaluation of the exposure profile of the product, including detailed stress testing of the product over a broad range of market scenarios and the associated exposure implications.
Energy Trading Law
Transactions Energy Trading Law Risk Management Energy Trading Law Compliance