Master the Knowledge to Manage Energy Risk

Transcription

1 Master the Knowledge to Manage Energy Risk The Value of ERP Certification Global Association of Risk Professionals January 2014

2 Introductions and Agenda GARP and its role in Risk Management Energy Risk Management and the ERP Certification Perspectives on the role of the ERP in individual careers Everything you wanted to know about the ERP but were afraid to ask Need photo Chris Donohue, PhD Managing Director, Research and Educational Programs GARP Questions & Answers Ben Baglin, ERP Head of Market Risk EDF Trading NA Shaun Connell, ERP Head Trader, Eastern Energy TransAlta Corporation Andrew Tudor, ERP Energy Resource Planning NMPP Energy Michael Sell SVP, ERP Program Manager GARP 2

3 GARP s Risk Management Certification Programs Energy Risk Professional (ERP ) program Launched in 2009 to address the growing importance of energy Program objective assess an individual s ability to measure and manage physical and financial risk in the energy industry Financial Risk Manager (FRM ) program Leading global professional designation program for risk management Administered by GARP since 1997 Program objective assess an individual s ability to measure and manage risk in a real-world environment 3

4 Fundamental Forces are Driving Demand for Energy Risk Managers Energy companies are increasingly globalized and interconnected Technological innovation is driving growth in reserve development Relationship between physical and financial markets is evermore complex Transactions are happening faster and market data sets are getting larger Regulatory initiatives and requirements are increasing Growing awareness and implementation of ERM initiatives 4

5 The ERP Certification Prepares You for a Career in Energy Risk A unique professional designation that is gaining industry recognition A practitioner driven exam curriculum guided by an oversight committee comprised of CROs, commodity traders, risk managers and consultants from energy sector The ERP Exam is designed to assess an individual s ability to measure and manage physical and financial risk in the energy industry. Continuous learning opportunities through GARP s CPE Program Positive signaling to colleagues and employers that will differentiate you Access to a global network of like minded energy market and risk professionals 5

6 6 Validity and Reliability

7 Practitioners Inform Exam Curriculum and Development The ERP is overseen by an Energy Oversight Committee (EOC) EOC is comprised of high-level practitioners with expertise across a range of risk management topics that impact the global energy markets. Regular job task analyses and curriculum surveys are performed to identify current industry demands and specific exam topics. The ERP curriculum is reviewed and revised annually in conjunction with the EOC The ERP curriculum is described in the 2014 Study Guide and AIMs documents The AIMs summarize the knowledge points contained in each required reading ERP item writers and other Subject Matter Experts (SMEs) rely on the AIMs to develop examination items (questions) 7

8 2014 Energy Oversight Committee Ken Abbott Morgan Stanley & Company Richard Apostolik GARP Dr. Lawrence Austen Trafigura Gordon E. Goodman* Alliance Risk Group Jeff Jewell DTE Energy Glenn Labhart (EOC Chairman) Labhart Risk Advisors Alessandro Mauro Litasco SA Mark D. May Philips 66 Shawnie McBride Direct Energy Ken Robinson Calpine Michael Sell GARP Jonathan C. Stein Hess Corporation Dr. Chris Strickland Lacima Group Dr. Glen Swindle Scoville Risk Partners John Wengler Hess Corporation * Retired Occidental Petroleum 8

9 The ERP Exams Are Designed to Be Fair but Rigorous Psychometric testing is completed on each exam Positive results indicate the ERP reliably measures competence in energy risk skills Historical Pass Rates Nov 2009 May 2010 Nov 2010 May 2011 Nov 2011 May 2012 Nov 2012 May 2013 Nov % 62% 49% 54% 51% 50% 45% 45% 47% 9

10 10 Market Acceptance of the ERP

11 Candidate Registrations Are Growing 11 * November 2009 only

12 Awareness is Global Countries with the Highest Percentage of ERPs Canada 8% USA 36% UK 11% Germany 5% Switzerland 7% India 7% Singapore 6% 12

13 ERP Highlights Over 700 Certified ERPs globally More than 60 organizations with two or more ERPs ERPs come from more than 50 countries Organizations with the most ERPs 13

14 14 Insights from ERPs

15 Market Risk Management: Ben Baglin Ben Baglin, ERP, Head of Market Risk, EDF Trading North America Ben has 16 years of experience in trading and risk management in the global oil market, and the European and US Gas and Power markets respectively. He has held trading, portfolio management and risk manager roles at Shell Trading, Graham Capital Management, Merrill Lynch and EDF Trading in the US and Europe. Describe the types of activities you are typically involved with in your role at EDF Trading. What are some of the most important trends in energy markets and the role of risk management? What differentiates energy market risk from traditional financial market risk? What do you consider to be the underlying value in becoming a Certified ERP? 15

16 Power Trading: Shaun Connell Shaun Connell, ERP, Head Trader of Eastern Energy, TransAlta Shaun has more than 10-years of power trading experience at TransAlta. As Head Trader of Eastern Energy, he is responsible for achieving gross margin targets for Eastern Trading Operations through asset optimization, origination, and proprietary trading in physical and financial energy markets. Shaun has recently taken the business lead on development and implementation of an Energy Trading Risk Management (ETRM) platform that will replace current business processes and legacy systems. What knowledge and skills have been most instrumental in your career success? How did you hear about the ERP? A number of your colleagues at TransAlta have taken the ERP what feedback have you received? Describe the benefits you envision from the integration of the ERP into TransAlta s risk culture? What advice would you give ERP candidates who are interested in pursuing a career in energy trading? 16

17 Quantitative Modeling and ERM: Andrew Tudor Andrew Tudor, ERP, Energy Resource Planning, NMPP Energy Andrew recently joined the Municipal Energy Agency of Nebraska (MEAN) as energy resource planner. Prior to joining MEAN, Andrew held a variety of risk roles at the Tennessee Valley Authority (TVA) where he was engaged in enterprise risk, operational risk, quantitative risk modeling, commodity forecasting, and long-term enterprise planning. Before transitioning to the energy markets, Andrew was a statistician at the United States Census Bureau. What knowledge and skills did you find the most useful in your transition to energy risk? Describe the risk management tools and modeling projects you have helped implement. What have you found most appealing about working in the energy markets? How has the ERP Certification added value to you personally and in your career progression? What advice would you give ERP candidates considering a transition to energy risk management? 17

18 ERP Program Offering

19 The Path to Becoming a Certified ERP Pass the ERP Exam 140 question multiple-choice exam Two 4 hour sessions with a break for lunch Fulfill required work experience Can be completed prior to or after sitting for the exam Candidates have 5 years to fulfill requirement after passing exam Participate in Continuing Professional Education (CPE) 40 credit hours earned over 2 years GARP provides monthly listing of CPE opportunities Pass ERP Exam Demonstrate Two Years Relevant Work Experience Certified Energy Risk Professional (ERP ) Mandatory Continuing Education 19

20 Exam Curriculum Covers the Entire Energy Value Chain Physical Commodities Oil, Gas, and Coal markets (25%) Electricity Markets and Renewable Generation (25%) Financial Markets and Risk Management Financially Traded Energy Products and Structured Transactions (15%) Energy Commodity Price Formation and Market Risk (15%) Credit, Counterparty, and Country Risk Assessment (15%) Enterprise Risk Management and Business Ethics (5%) 20

21 Download Resources for Exam Preparation Study Guide (Free) AIMS (Free) Exam Preparation Handbook (Free) ERP Core Readings Course Pack (US$295 + shipping) Practice Exams (Free) Register with a GARP approved ERP Exam Preparation Provider 21

22 Mandatory Continuing Education for ERPs Earning the ERP is just one step in building your energy risk career; maintaining your knowledge and skills is equally important. Certified ERPs are required to earn 40 hours of CPE credit every 2 years GARP helps ERPs stay abreast of current industry trends and risk management knowledge through our Continuing Professional Education (CPE) Program. The CPE program is global, flexible and delivers an extensive range of highly relevant programs from webcasts and training programs to live conferences and seminars. GARP has partnered with a broad range of global providers of education and training to bring you the most up-to-date information and share best practices in risk management In addition to structured activities, GARP shares an extensive list of articles, journals, whitepapers and other published materials on a monthly basis 22

23 ERP Program Registration Timeline and Fees ERP Program Enrollment and Exam Registration Fee May 17, 2014 Nov 15, 2014 Enrollment Fee US$300 Valid for 4 years Early Registration US$450 Dec 1, Jan 31, 2014 Jun 1, July 31, 2014 Standard Registration US$575 Feb 1, Feb 28, 2014 Aug 1, Aug 31, 2014 Late Registration US$750 Mar 1, Apr 15, 2014 Sep 1, Oct 15, 2014 Enrollment fee includes 1-year complimentary GARP Individual Membership Register for the May 2014 exam at 23

24 2014 ERP Exam Sites Africa Jordan, Amman USA, Colorado, Denver Ireland, Dublin Ghana, Accra Korea, Seoul USA, D.C., Washington Italy, Milan Kenya, Nairobi Kuwait, Safat USA, Florida, Tampa Luxembourg Nigeria, Lagos Lebanon, Beirut USA, Georgia, Atlanta Poland, Warsaw South Africa, Cape Town Malaysia, Kuala Lumpur USA, Illinois, Chicago Russian Federation, Moscow South Africa, Vanderbijlpark Oman, Muscat USA, Louisiana, New Orleans Spain, Barcelona Pakistan, Karachi USA, Massachusetts, Waltham Spain, Madrid Asia Philippines, Manila USA, Michigan, Ann Arbor Sweden, Stockholm Bahrain, Manama Saudi Arabia, Riyadh USA, New York, New York Switzerland, Geneva China, Beijing Singapore USA, NJ, New Brunswick Switzerland, Zurich China, Chengdu Taiwan, Taipei USA, North Carolina, Charlotte The Netherlands, Amsterdam China, Guangzhou Thailand, Bangkok USA, Ohio, Columbus Turkey, Istanbul China, Hong Kong United Arab Emirates, Dubai USA, PA, Philadelphia Ukraine, Kiev China, Nanjing USA, Texas, Dallas UK, England, London China, Shanghai Americas USA, Texas, Houston UK, Scotland, Edinburgh China, Wuhan Bermuda, Paget USA, Washington, Seattle India, Bangalore Brazil, Sao Paulo Oceania India, Chennai Canada, Alberta, Calgary Europe Australia, Melbourne India, Hyderabad Canada, BC, Surrey Austria, Vienna Australia, Sydney India, Kolkata Canada, Ontario, Toronto Belgium, Brussels New Zealand, Auckland India, Mumbai Canada, Quebec, Montreal Bulgaria, Sofia India, New Delhi Jamaica, Kingston Czech Republic, Prague Indonesia, Jakarta Mexico, Mexico City France, Paris Israel, Tel Aviv (Sunday) USA, California, Los Angeles Germany, Frankfurt Japan, Tokyo USA, California, San Francisco Germany, Munich 24

25 Questions & Answers Use the Ask a Question feature to submit webinar questions ERP Facebook chat January 29, 2014, 11AM EST Opportunity for additional Q&A before early registration ends Learn more about the ERP Program, including Exam preparation resources at: memberservices@garp.com Connect with other Certified ERPs and ERP Exam candidates at: Energy Risk Professional group Follow GARP on 25

26 Contact Us Directly Anytime Chris Donohue: Michael Sell: 26

27 Creating a culture of risk awareness Global Association of Risk Professionals 111 Town Square Place 14th Floor Jersey City, New Jersey USA nd Floor Bengal Wing 9A Devonshire Square London, EC2M 4YN UK + 44 (0) About GARP The Global Association of Risk Professionals (GARP) is a not-for-profit global membership organization dedicated to preparing professionals and organizations to make better informed risk decisions. Membership represents over 150,000 risk management practitioners and researchers from banks, investment management firms, government agencies, academic institutions, and corporations from more than 195 countries and territories. GARP administers the Financial Risk Manager (FRM ) and the Energy Risk Professional (ERP ) Exams; certifications recognized by risk professionals worldwide. GARP also helps advance the role of risk management via comprehensive professional education and training for professionals of all levels Global Association of Risk Professionals. All rights reserved.