How to be top of the class

Brett Humphreys discusses the attributes that combine to create a best-in-class market risk management division within an energy company

How do other companies approach the risk management function? How do they measure risk? How do they control risk? Such questions are difficult for a firm to answer. While it would be impossible to thoroughly describe every potential risk management method in a short article, we can specify messages that are typical of certain levels of market risk management sophistication.

The first step is to separate the risk management function into three areas: exposure measurement, which