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This hands on and very practical in-depth two-day course covers, • Risk management in three steps: - Identification of risk factors - Measuring or quantification of exposures - Controlling risk in unacceptably high exposure • Value at Risk is covered intensely, as well as the application of derivatives: - Forwards - Futures - Swaps - Options Incorporation of asset-backed trading including proprietary trading as well as optimization of assets. CONTACT INFORMATION: Email: Telephone: +46 (0)727 115 367

Vv Website:

Energyforum .se

This hands on and very practical in-depth two-day course covers the main themes of Risk Management. It touches on various risks, though with a focus on market risk. During this course you’ll experience the factors which influence the quantification of risk and different ways to calculate exposures. In the course you’ll be shown how to control risk and you have to apply derivatives yourself to mitigate risk. Practical exercises provide you with thorough understanding of Forwards, Futures, Swaps and Options. Simulations make this course very much hands-on and show you how to implement asset-backed trading and optimization of assets.

Who Should Attend This intensive two day training course has been designed for the following audience working in energy companies, banks and energy authorities: • Energy risk managers • Portfolio and risk managers • Energy traders • Risk controllers • Compliance officers • Internal auditors • Energy regulators • Asset developers • Back office staff • IT Experts Some companies that have attended Energyforum’s courses in the past:

DONG Energy E.ON Benelux Statoil BP GDF SUEZ Nuon E.ON Energy Trading AG Norsk Hydro Produksjon Endesa Vattenfall Energy Trading

UAB AS Latverenergo Wingas Statkraft Energi AS Electrabe l RWE Supply & Trading Shell EDF Energy Energinet EnBW Trading

About the course leader Jerry de Leeuw is founder and Managing Director of Mercurious (2004). After completing his study in Economics in 1995 he became a Market Maker on the trading-floor of the European Option Exchange (EOE) in Amsterdam. He was employed by Curvalue on EOE, Amsterdam Exchanges (AEX) and Euronext. In 1999 he established his own Market Maker company, which was licensed under the supervisory body AFM. This firm became a Member of Euronext Liffe, and had clearing-contracts with Fortis, KBC bank and Goldman Sachs. Over the years, Jerry has traded by open out-cry on the floors of various exchanges and has a great deal of experience in screen-based trading. He has extensive experience in a variety of products, (amongst others) ranging from stocks, currencies and commodities to futures, options and structured products. With the Anglo-Dutch energy exchange APX-Endex Jerry was (on an interim-basis) responsible for the development of the continental gas markets in Belgium and The Netherlands (2007). In this role he visited the dealing rooms of their members throughout Europe. Jerry delivers lectures at universities and high schools and was also project manager for the development of a new oil index. This global price basket and its underlying scientific research paper was first presented the symposium Energy & Value, organized by Multinational Finance Society, in cooperation with Rijks Universiteit Groningen and Energy Delta Institute. In 2008 and 2009 Nyenrode Business University embraced the project and this meant that Jerry was connected to this university in that period. Last but not least, he is columnist for several media, amongst which is Jerry is author of the books ‘Milkshakes & Butterflies’, ‘Hit & Lift’ and ‘Energy problems & future perspective’.

IN-COMPANY TRAINING Energyforum offers in-company training to accommodate your needs. By bringing the knowledge to you we can offer cost effective high quality training and customize the content for your requirements. We design the case studies to enable you to receive the practicle hands-on knowledge you need. Vv CONTACT INFORMATION: Email: Website: Telephone: +46 (0)727 115 367

Energyforum .se


Introduction to risk and risk management • Return is only half the equation • The risk management process (Identify, Measure, Control) • Risk versus reward • Optimizing portfolios • The risk management process

Financial trading, derivatives & market impact

Types of risks • Operational risk • Geo-political risk • Regulatory risk • Market/price risk • Counterparty/credit risk • Currency risk • Liquidity risk • Legal Risk • Natural risk, weather risk & transport risk

EXERCISE: Spark & Dark Spreads, optimization and associated risks • Swaps

Market overview • Market participants (Traders, Hedgers, Speculators) • Types of products (Gas, Power, Oil and other products) • Market efficiency in energy markets SIMULATION: Speculation – Margining & VaR Energy trading and trading risk • Physical trading & associated risk • Bottlenecks in delivery and capacity (and associated risks) • Nominations (shippers and program responsible parties) • Clearing and settlement • Physical versus financial risk (Location risk, Time risk, Quality risk, Political risk)

• Futures and forward curve risk • Remote hedges in correlatedmarkets • Spark, Dark spreads etc. gross processing margin spreads

EXERCISE: Gas swap • Options (conditional products) • Risk parameters (Greeks)


CASE: Trading screen – Trayport, credit lines, sleeving & masters Quantifying (market) risk • Regulations (top down) • Stress testing (CvaR, Event risk, Subjective approaches) • Skew, kurtosis and black swans • Non-financial risk and incompletemarkets • Financial Risk & loss • (Log)normal distribution and standard deviation • Value-at-Risk concept (bottom up) (Variationco-variation method, Historical method, Monte Carlo method,Why use VaR and why not)

SIMULATION: Options risk management – Managing Greek variables

EXERCISE: Value at Risk calculations in Excel (Variance/ Covariance & Monte Carlo)

• Weather, freight and emission products • Trading and hedging strategies • Clearing, settlement and margin requirements

Risk management and the organization • Structure of risk management in the organization • Policies and procedures around market risk, credit risk and operational risk • Risk management systems

More risk issues • Listed versus bilateral (OTC) • Portfolio management and balancing regime • Prop trading, arbitrage and market risk • Marking-to-Market valuation, allocation, compliance & regulations (IAS39) • Dynamic hedging or accepting and limiting risk • Trade management and psychology of trading • Contract management (EFET, ISDA) • Order flow and straight- through-processing

CONTACT INFORMATION: Email: Telephone: +46 (0)727 115 367

Vv Website:

Energyforum .se

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+46 (0)727 115 367

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What happens if I have to cancel? If you wish to cancel your attendance at an event, and you are unable to send a substitute, then we will issue a voucher for the rate paid, providing that the cancellation is made in writing and received at least 28 days prior to the commencement of the event. Regretfully cancellation after this time cannot be accepted. We will however provide electronic access to the event documentation to any delegate who has paid but is unable to attend for any reason. No other forms of refund or credit will be available. CONTACT INFORMATION: Email: Telephone: +46 (0)727 115 367

Vv Website:

Energyforum .se

In-Depth Energy Trading & Risk Management