Is risk modelling keeping up with the energy market?
Lean times in energy and commodity derivatives trading have caused a cutback in the amount of time and resources spent on energy risk modelling – a worrying trend that could leave firms unprepared for future market challenges, argue some experts. Mark Pengelly reports
There is no shortage of books, training courses and conferences on the topic of energy risk modelling. A simple Google search for the term returns approximately 49.4 million results. Despite this, energy risk practitioners complain the field is being neglected due to a wider retrenchment from energy trading by banks and a lack of investment from other participants, such as utilities. This lack of investment could leave energy risk models lagging the fast-developing physical energy market, they
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