A rewarding Risk Management approach

In a sea of risks, the risk factors that management can perceive are sometimes limited, like the visible tip of an iceberg.
Our experienced risk team will help identify the risks management requirements associated with your businesses, to introduce the best-practices and technologies.

Our specialties:

We base our risk decisions and strategies on the full understanding of the client risk/reward profile.
As we value our clients’ effort in building up their physical trading activities, our scope is to mitigate risk while optimizing the intrinsic value of their assets.
We direct to our clients the best resources with strong experience in developing, modelling and implementing business processes in various areas like the one shown in the info graphics.

Our clients:

We developed trustful relationships with Physical and Financial trading houses in Europe, Asia and Middle East.
By guiding our clients through Risk Management best practices, we provide unique customized hedging solutions, each one geared solely towards the needs of one individual customer in the sectors below.

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OUR SECTORS

Consulting_ikbrokersOil producers

  • Forward price hedging
  • Long term contract optimization
  • Virtual Refinery contracts

Consulting_ikbrokersPower & Gas

  • Portfolio optimization
  • Cross-commodity hedging
  • Virtual Power Plant
  • Virtual storage

Consulting_ikbrokersShipping

  • Cargo hedging
  • Bunkering hedging
  • Chartering price management

Consulting_ikbrokersRenewable energy

  • Energy management
  • Production/ volume risk
  • Price risk / fixing
  • Scheduling and dispatching

Consulting_ikbrokersAviation

  • Fuel management
  • Supply price hedging
  • Contract management

Consulting_ikbrokersIndustry and transport

  • Power and heat price risk / fixing
  • Metals hedging
  • Fuel management / hedging
  • Interest rate and credit risk

Risk Management “as a Service”

A dedicated team ready to manage your Energy and Commodity Trading risks

Trading activities are at the heart of your business. You are exposed to energy and commodity price volatility and you are aware that managing risk is not easy, time consuming and capital intensive. Developing dedicated business processes and technology infrastructures can be very challenging. Last but not least, Risk Managers, C/ETRM technologists and Quant hires can be extremely expensive.
On the other hand, the drawdowns of ignoring market risk and other risk factors can be disastrous.

To tackle all of this, we designed a new innovative service that will enable your company to get continuous Risk Management support from the best risk professionals at a fraction of a cost, and let you fully concentrate on your business objectives.

We offer full Risk Management as a Service (RMaaS) to Industrial and Energy Trading companies ranging from Physical Trading shops without structured Risk Management desks activities/resources, all the way up to vertically integrated Commodity Trading firms and Energy intensive industries. The service level depends on the sophistication of Trading and Risk activities, and on the size of the company.

Early Risk set-up

Objective of the service for companies with limited Risk Management activities is to set up the basic processes and functions. We will offset the main risks and ensure a smooth cash flow of your operations.

Risk Mapping of the existing business structure

Full Hedging solutions of production assets, cargoes or commodity supply/sales portfolios

Daily position management of the Hedging exposures (MtM, PnL)

Daily and final reporting of the Hedging Performance on Flat Price

 
 
 

Steady Risk activities

Objective of the service is to improve your existing processes and functions. We aim to introduce cost saving on your hedging and efficiency on position management.

Risk Mapping of the existing business structure and process optimization

Customized Hedging support to save hedging costs:
o Direct counterparty hedging
o Set-up of Clearing accounts
o Set-up of Credit lines /Margin facilities for trading via Exchange
o Hedge execution optimization

Continuous position management and risk calculation:
o Hedging exposures (Basis, PnL, MtM)
o Basic risk metrics calculation (VaR)

Daily and final reporting of the Hedging Performance on Flat Price

 
 
 

Advanced risk activities

Objective of the service is to extract the most out of the market opportunities by leveraging market intelligence, advanced hedging techniques and flexible financial instruments, while complying the risk control policies.

Risk Mapping of the existing business structure, process optimization and IT system clinic

Customized Hedging support to optimize hedging costs and extract market volatility value:
o Direct Market Access / Market Making
o Hedge execution optimization with Market intelligence
o Greek hedge optimization via options and options structures (like Caps, Floors, Three-Ways, Options Spreads, Fences, Collars)

Continuous position management and risk calculation:
o Hedging exposures (Basis, MtM, PnL)
o Advanced risk metrics calculation (VaR, ES, CVaR)

Advanced Top Management reporting of the Hedging plan, performance, historical exposures, scenario stress-testing

Design of long-term physical supply/sales contracts, related credit facilities and forward curve hedging

Valuation, Adoption and Hedging of Synthetic Assets like:
o Virtual Refinery
o Virtual Storage
o Virtual Power Plant
o Interconnection

Integration of Front Desk/ Execution with Middle Office and Risk Control:
o Risk Metrics/Risk Aggregation live streaming
o Risk Control procedures for open exposures management

Risk Management technologies

By working closing with trusted Risk Management systems providers and top Risk professionals, we integrate and develop complex projects with our clients, starting from the Functional Analysis and Due Diligence, up to the implementation phases.
We work in Risk System integration with the main vendors, and we can provide a full decision matrix to assess independently the best investment in ERM and C/ETRM technologies.

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