Sep 26, CCRO 3Q Meeting - Part 1


The First Day's Topics Include...

Summary of Timing:
The day starts at 11:00 - 
with members catching-up over lunch,
12:30 to 5:00 - General round-table discussions regarding current initiatives
5:30 - 7:00 - Cocktails
7:00 'till - Member & Guest Dinner


Nearing Publication: Our Industry Risk Function Survey Study Report

Final Draft of Detailed Study Report

  • Attendees will together be reviewing & commenting on this final draft of our comprehensive survey report.  

    • In advance of the meeting, we plan to provide a group of attendees with on-line viewer access to preview the expansive report of over 200 pages and 100+ charts.

-->Please notify us by CLICKING HERE if you would like to preview this on-line report
and share your thoughts and ideas at this meeting...

1. Participant demographics- The business characteristics of our thirty-one participant companies, in special groups used to draw additional insights from survey results

2. How have companies designed their risk function? - Risk function purview over businesses and transaction types; Positioning the risk function in the Corp; Complexity of the risk function

3. How do companies ensure governance over risk?- Duties of the risk function; Internal and regulatory compliance; Independence of the risk function; The internal risk management committee;

4. How do companies manage credit risk?- Credit function operations; Organization, staff, reporting; Internal policies related to credit; Limits, mitigation instruments; Credit systems 

5. How do companies ensure robust risk analysis?- Market and credit risk limits; Validating forward curves, back-testing; Scenario analyses, stress-testing; at-risk metrics; Risk-capital based metrics

6. How do companies staff with & design compensation for risk professionals?- Staff size; Base & bonus; Risk compensation design versus other functions; Organizational levels

7. Risk Systems- System types for various stages of the transaction lifecycle; Use of a data warehouse; Settlement systems; Trade entry and confirm systems; Market & credit risk systems

Full Draft: Sec 3. of our Retail Risk Management Standards White Paper

After reaching an ideal overall structure for this comprehensive paper, and completing fifteen webinars with interested CCRO members, the retail risk management group has been aggressively developing section 3.  This section addresses the "Creation of Retail Risks", for power and gas retailers and provides for an organized taxonomy of all risk types and discussion of them.

We will take a close look at this robust draft and focus on of several key areas, each hosted by participant members.  To get a sense of the scope of his section 3, it is organized into:

  • Creating market risks for retailers

    • For example risks: price, basis, volumetric, market liquidity, shape, ISO costs, Utility costs, forecasting both long and short term, specific product risks, and more...
  • Creating operative risks for retailers

    • For example: Internal controls, customer on-boarding, transaction pricing, supply & delivery optimization, billed cost & revenue mgt, cash & collateral mgt, gas & power delivery, regulatory compliance, curtailments, and more...
  • Creating credit risks for retailers

    • For example: Forecasting receivables, measuring credit exposure & risk, mass market credit risk, C&I credit risk, and more...
  • Creating business risks for retailers

    • For example: Competitor activity risks, technological disruption risks, market design risks - federal, regional, state
  • Creating capital adequacy risks for retailers

    • Intro to adequacy for economic value and liquidity, cash conversion cycle risks, settlement process and liquidity risks, and more...
  • What’s next for the retail project?  Who’s been most involved; how can others get involved?

    • The group wants to reach-out to retailers of all sizes, and their suppliers, to join us in this initiative.
      Please notify us of your interest by CLICKING HERE and we'll arrange a conversation about next steps...
CCRO RetailRisk Sec3 - Google Docs.png

Discussion Hosts:

Amir Anani, Just Energy

Amir Anani, Just Energy

Joe Pokalsky, Prosumers Energy

Joe Pokalsky, Prosumers Energy

Feature 3

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