A capital adequacy primer
A summary of the Committee of Chief Risk Officers’ (CCRO) emerging guidelines on capital adequacy, by Cinergy’s Antonio Ligeralde, Kenneth Robinson of El Paso Merchant Energy and CCRO head Michael Smith
As part of its drive to introduce standardised best practices across the energy industry, the Committee of Chief Risk Officers (CCRO) is introducing a set of emerging practices that energy firms can use to measure capital adequacy.
Capital adequacy has been a topic of debate for many years. By its simplest definition, capital adequacy is the availability of funds necessary for a company to meet its foreseen and unforeseen obligations – both short- and long-term. Capital should be large
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