Approaches to strategic risk for energy risk managers

Pauline McCallion looks at the challenges the energy risk manager faces when dealing with strategic risk

Today’s energy risk managers face unprecedented external change from various quarters. Regulatory, macroeconomic and geopolitical changes are all impacting on energy firms’ businesses. Derivatives regulation under the Dodd-Frank Wall Street Reform and Consumer Protection Act, for example, will transform hedging strategies and affect relationships with counterparties; supply and demand issues continue to put upside pressure on most energy prices; while new technologies, such as electric vehicles