CCRO Meeting September 26th & 27th, 2018
Our Venue for Both Days:
OFFICE OF BROOKFIELD RENEWABLES
41, Victoria Street, Gatineau, QC J8X 2A1
Evolution board room, ground floor
Want to be a CCRO guest?...
This meeting will be primarily CCRO members. However we encourage guests that are interested in the CCRO and in this meeting in-particular. If you would like to request an invitation to join us - please contact Bob at firstname.lastname@example.org
~ Afternoon Sep 26 ~
Day 1: CCRO Initiatives Day; Summary of the afternoon's timing:
5:30 - Cocktails (Venue TBD)
- Continue unfinished discussions / start new ones, informally
7:00 - CCRO Member & Guest Dinner (Venue TBD)
- Enjoy a dinner together with new & old friends
The day starts at 11:00 eastern time
- ...with members catching-up over lunch
12:30 to 5:00 Members Discussions
- General round-table discussions regarding topics below
12:30 - 1:30 Eastern Time
Our 2017 Industry Risk Function Survey Report
Final Draft of Detailed Report is Nearing Publication
Attendees will together be reviewing & commenting on this final draft of our comprehensive survey report. Our goal is to publish before the next CCRO meeting.
In advance of this 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. Interested in seeing this on-line preview? Just click the learn more button.
1:30 - 2:30
Our Retail Risk Management Standards White Paper
A Full Draft of Section 3: "Creation of Retail Risks" is Emerging
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, and more details, click learn more ...
What’s next for the retail project? Who’s been most involved? How can others get involved? The group leaders will make clear the path forward for this fascinating initiative by the CCRO to establish recommended/standard practices for retail.
2:30 - 3:30
Credit Risk Management Practice Standards
A new CCRO Initiative Gets Under-way
The CCRO membership agrees that since our first credit risk publication in 2002, credit risk management practices have evolved in a number of important directions. In these past fifteen years:
New technologies have emerged making complex analyses more practical
New mitigation instruments are now offered by new service providers; while others have faded in use
New sources of credit risk have emerged, particularly from emerging industry segments such as retail energy
This new CCRO group is forming quickly, by first establishing the leadership group of credit-practitioner members. In addition, we want to invite the appropriate credit solution providers as CCRO advocate members to provide expertise and resources needed to tackle research and carry-out case-example credit analyses for the paper. The wider team of credit professionals participating as editors is expected to incorporate a wide cross-section of industry and specialties.
CCRO welcomes the International Energy Credit Association (IECA) to this initiative.
CCRO and IECA will be working together to advance development of this set of white papers as well as related events & training...
3:30 - 4:00
Benchmarking Key Risk Indicators
The Leadership Shares their Best Practice Procedures and Policy for this Benchmarking Service
Many members have indicated they do internally measure and report their own KRIs. They also indicated that the value of these measures is limited because they can only be inward-looking, measuring only their own numbers and trends. However, benchmarking to industry peers would dramatically increase the value of KRI measures by bringing a sense of what numbers and trends may be "best" or "worst" in-class KRI results. With external KRI benchmarking, a CRO's reports can make a much more compelling case for internal change initiatives.
For Discussion at this meeting: Our CCRO Member-driven Solution. Taking constructive action towards solving this situation, the CCRO's KRI working group is striving to create an entirely new database of anonymous industry KRI benchmarking statistics, particularly in the area of operative risks. Proof of concept of this database and an associated cloud-based reporting tool has already begun.
At this meeting, the group's leadership team will be hosting discussions about the latest developments in this initiative and reaching-out for more participant companie. By joining as a participant in this group the KRI benchmarks become more robust overall, and your company will gain access to the results data through the cloud-based viewer.
Current status: participants, access to viewer, clarifying data being submitted, periodicity of data,
Practices for gathering the necessary internal data
4:00 - 5:00
New Initiative: Best Practices for Trade Area Monitoring
Compliance with CFTC regulations related to commodity trade orders and related patterns
We are excited to be proposing a very important initiative addressing the broad subject of trade area monitoring as part of managing operational risks. Today’s discussion will focus on risks of non-compliance with complex CFTC regulations concerning trading tactics. These regulations cover exchange trades AND all swaps, companies with trading activity of any size, and retailers as well as their credit providers…this area is for virtually all CCRO member companies.
The discussion Jack and Mike have developed is an interactive exercise that is designed to help members:
Understand what they are up against and what they can do about it
Gain a real sense of the urgency associated with addressing this specific risk
Better appreciate how much we don’t know right now to be able to do this effectively
Identify how the CCRO can help advance industry practice in this area
A note: Our November CCRO meetings will be centered around compliance issues, with this being an important one of those. Join in this engaging and informative discussion to kick off our next steps in this area.
5:00 - 5:15
Tour of the Brookfield Renewables Trading Floor
Frederic has volunteered to open the trading floor for us to have a walk-through and Q&A session...
Evening: Cocktails followed by dinner
5:30 - Cocktails at Andaz Hotel’s rooftop bar
Head upstairs to Copper Spirits & Sights and take in a view like no other. Located on the 16th floor of the hotel, this premium lounge boasts the title of city's tallest rooftop bar.
7:30 - Dinner at the “Social” restaurant
Continue discussions at our members and guests dinner, just down the street from the Andaz.
Our dinner is sponsored by
Advocate Members & Invited Solution Providers:
~ Full Day Sep 27: ~
Day 2 Symposium: Risk Management Methods for Renewables
Want to be a CCRO guest at this Symposium?...
This symposium will be primarily CCRO members. However, we welcome guests that are interested in the CCRO and in this meeting in-particular. If you would like to request an invitation to join us - please contact Bob at email@example.com
Summary of the day's timing:
Coffee at 8:30 - If you weren't too late last night...
9:30 to 2:00 - Symposium
9:30 - Quick update on the CCRO Survey of Industry Practices…
A brief look at how the expansive analysis report is being distributed. Objective: Publish in October through subscription…
9:45 - Risk Management Processes for Large Renewable Energy Capital Projects
CCRO members have expressed interest in exploring best risk management practices when developing large scale renewable energy projects (e.g., wind, solar, geothermal, and battery storage projects). This discussion explores the similarities and differences between more conventional energy project risk management practices and those necessary to ensure the success of large scale renewable energy projects.
Following are several project management topics we’ll explore:
Assessing Project Drivers (Customer Demand, Public Policy, Other)
Business Strategy and Decision-Making Criteria
Project Planning & Administration
Financing, Credit, Market Pricing & Currency Issues
Vendor Due Diligence, Selection & Contracting
Regulatory Pre-Approvals (Cost Recovery, Siting, and Permitting)
Construction, Third Party & Contract Administration
System Energizing and Delivery
Post-Construction Reviews & Approvals
10:45 - Managing the Risks of On-going Renewable Energy Operations
(Risks that may need to be addressed during the project planning stages to secure financing)
Accept: Assessing Capital Adequacy to do so
Offset: Commodity trading & hedging, strategies for
Transfer: Contracts, Derivatives, Insurance-like Instruments
11:30 - Case Study: Risk Tolerance and the Holtwood Dam Safe Harbor Rules
Brookfield Energy’s risk group has helped the company optimize revenues while managing risks at this large renewable asset… Join the discussion as the leader of this risk analysis project walks through the challenges and results.
12:30 - Risk Systems that Handle Renewables Exposures...
What are the challenges to ETRM systems when a renewable asset, or portfolio of assets, is involved?
What approaches are available to tackle these challenges?