Front to Back Office: Trading Controls, Risk Measurement and Modelling - FTBOE 

CPE Credits Awarded: 16
Categories: Trading, Derivatives, Hedging and Risk Management

Course Date Duration Venue Price Registration Deadline Register
18 Mar 2019 2 Days Houston, TX Country: us
$ (USD)1,700.00
15 Feb 2019
01 Apr 2019 2 Days Calgary TELUS Convention Centre Country: ca
$ (USD)1,700.00+5%GST
1 Mar 2019
04 Nov 2019 2 Days Calgary TELUS Convention Centre Country: ca
$ (USD)1,700.00+5%GST
4 Oct 2019

COURSE SUMMARY

This fascinating and interactive two-day workshop 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.  

Through interactive group case studies, delegates will analyze examples of control inadequacies leading to:

  • Expensive trading mistakes
  • Liquidity crises
  • Market manipulation
  • Misuse of leverage

Includes Online Pre-study Module
This course is accompanied by a preparatory course available online. Delegates will receive a web voucher as part of their joining instructions upon confirmation of registration. By taking advantage of this "blended" learning approach, in-class time and learning are optimized.

PRE-REQUISITES

Fundamentals of Energy Futures, Options I - Fundamentals of Energy Options, and Introduction to Hedging in Energy Markets or equivalent experience.

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

WHO SHOULD ATTEND?

Class delegates include everyone from support staff to management from trading, risk management, operations, accounting, credit, and contracts groups. This one-day 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.).

COURSE CONTENTS

  • Key types of risk (faced by management and the trading room)
  • Details of recent spectacular failures
  • What happened and why
  • Same company or different planets?
    • Front Office
    • Mid-Office
    • Back Office
  • The overall controls process
  • Trading controls "Best Practices" guidelines
    • Executive management
    • Trading management
    • Traders
  • Trading authorities - limits and layers
  • Prioritizing more deals vs. better controls
  • Trading room controls
  • Capital Adequacy
    • Credit risk management and controls
      • Calculating credit exposure
      • Portfolio credit risk measurement
      • Forward-looking credit models
      • Determining credit thresholds
      • Key issues with credit and collateral annexes
    • Market price risk management and controls
      • Foundations for risk measures
      • Risk modeling issues
      • Price volatility issues
      • Application and strengths/weaknesses of value-at-risk
      • Other uses of value-at-risk
    • Additional risks to control: operational, regulatory, others
    • Stress Testing
      • Types of stress testing
      • Stress testing versus “at risk” measures
    • Determining adequate capital
      • Key measures of capital adequacy
      • Cash-flow-at-risk
      • Impact of margin (collateral) on working capital
      • Capital adequacy framework
    • Risk adjusted performance measurement
    • Determining risk tolerance
  • Regulatory and legal compliance
    • Regulation of trading and market manipulation
      • Overview of regulatory organizations
      • Market manipulation defined
    • Dodd-Frank Act
      • Overview of the new regulatory regime
      • Swap Dealers and Major Swap Participants
      • End user exemptions
      • Clearing, margining, reporting and credit risk issues
      • Implications of Dodd-Frank
  • Ethics
    • Definitions
    • Shades of gray
    • Organizational perceptions
    • Ethics in energy trading

FACULTY

Larry G. Lawrence, President of Enterprise Risk Consulting, LLC, has 25 years of experience in energy risk management and trading. His experience includes financial trading in energy and equity markets, risk management and trading consulting, derivatives portfolio management, technical and options analysis, corporate education, advisory service publishing, and institutional sales.

TESTIMONIALS

“Speaker was extremely knowledgeable, examples were relevant, materials were very effective.” R.D., Agrium

UK: (+44) 1865 250521   |   USA: (+1) 713 343 1699   |   Singapore: (+65) 6722 3845

 

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Mennta Energy Solutions (formerly The Oxford Princeton Programme, Inc.) is not affiliated with Princeton University, Oxford University, or Oxford University Press.