Operational Risk Management for Energy Companies

Transcription

1 Energy Risk magazine presents David Hirst on Operational Risk Management for Energy Companies Led by David Hirst, Director, Ainsty Risk Consulting Ltd incisive-training.com/opriskenergy

2 About the course Since the mid-1990s financial institutions have made progress in the identification, measurement and management of market and credit risk. As a result, these risks are better understood as are the limits to modelling them and active management of these risks possible in many areas. However, events such as; terrorist attacks, rogue trading losses at Société Générale and UBS, the Deepwater Horizon accident, volcanic eruptions and flooding have served to highlight that the scope of risk management - particularly in the energy sector, extends beyond merely market and credit risk. With its dependency on capital intense assets, complex systems and processes, and an ever changing regulatory and legal framework, the energy sector is particularly exposed to operational risks. The identification, measurement and management of operational risks are therefore vital to survival and success in the energy sector. Energy Risk Magazine is delighted to present this thought provoking two day training course on operational risk management tailored to the needs of energy companies. Led by former Head of Operational Risk Management at RWE Npower, David Hirst, this course will provide delegates with the relevant tools and techniques to enable them to better understand how to tackle operational risk in their day to day roles. Coming up in 2012: Operational Risk for Insurers: Developing an effective oprisk framework New York 7 8 May OIS Derivative Discounting: present and future challenges New York 25 May Also in 2012 Nexus Program series: Dynamic Hedging Essentials, Master Class & Workshop Chicago, April Enterprise Risk Management Montreal, June Asset Liability Management Techniques and Practices Chicago, October 2012 Asset Liability Management Seminar Chicago, October 2012 Please contact nexus-risktraining@incisivemedia.com for more information

3 About the tutor David Hirst Director, Ainsty Risk Consulting Ltd David Hirst is a Professional Engineer and Risk Manager with over 15 years of energy and commodity risk management experience. Working with national and global companies including ED&F Man, RWE npower, Drax Power and EDF Energy he has developed and implemented market, credit and operational risk policies. He is a Director of Ainsty Risk, a commodity risk management consulting firm. David is a member of the Joint Institution of Civil Engineers ( ICE ) and Actuaries working group developing best practice guide to Enterprise wide risk management. Past chairman and honorary Editor of the Proceedings of the ICE The Energy Journal. Member of the ICE s Steering Group that produced the acclaimed 2010 Defending Critical Infrastructure report. He is also a chartered Engineer and Fellow of the ICE and has an MBA from the University of Bradford. Working knowledge Delegates to this advanced operational risk course should be familiar with energy markets, understand typical transactions and contractual relationships and be aware of how financial models are used. Learning outcomes Upon attending this two day programme delegates will be able to support the development of a rational and considered approach to risk taking in energy companies by; Being able to assess, quantify and apply risk appetite Understanding regulatory and legal compliance framework Understanding some of the tools for managing operational risks Recognise how human behaviour critically affects risk Being able to apply standards and best practice guidelines to mitigate operational risks Taking lessons from financial services and applying to energy companies. Who should attend? Chief Risk Officers Energy Risk Managers Energy projects Investor, developers and advisors Internal and External Auditors Compliance Officers Energy Regulators and Civil Servants in Energy Roles

4 Day one Tuesday 29 May 2012 Understanding the Operational Risks faced by Energy Companies :00 Course Introduction and Networking Essentials of the Energy and Power Markets and Operational Risk Energy Companies - Objectives and Risk Appetite Energy Companies Licence to Operate Energy & Power in society; dependency and complexity, risk of interruption Fundamentals of Electricity systems: sensitivity and need for perfect balance Susceptibility of Gas and Oil to changes in Supply and Demand Dependency on systems and processes, complexity and vulnerability Defining Operational Risk Definitions inclusions and exclusions, Basel 2 Describing and Understanding Risk ; Symbolic Risks, False witness and what really happened? Human Behaviour and the Psychology of Risk Psychology of Risks Risk taking phenomena Risk as a function of individuals behaviour Prospect Theory and its impact on risk taking Group and team mechanics, behaviours and decision making Case Study Fatal Flaws in Group Decision Making Compliance, Regulation, Government Changing and reforming market structure = Market in-stability Case Study - Western U.S. Energy Crisis ( ) Compliance Risk Risk to individuals and energy companies REMIT, EMIR, MiFiD2 Bribery Act, Anti-Money Laundering etc. Environmental Legislation Renewable support mechanisms Reputation and Brand Risk Case Study Ratners, Perrier and the Energy sector Difficulties and successes in Energy Sector branding Case Study - npower brand development Fraud, Theft and Deception Case Studies Enron, 2001 Strategic Risks in Energy and Power White elephants Capital tie-up and efficiency of scale Barriers to market Risks and opportunities in market entry and exit

5 Day two Wednesday 30 May 2012 Mitigating and Managing Operational risks :00 Performance and Operating Risks Systems and Process Risk in Energy Markets, Case Study - Challenger Operational Effectiveness - avoiding the risk of doing the wrong thing Business Continuity and Disaster Recovery Modelling, Quantification and measurement Case study Measuring, Funding and Financing Risk in the Energy Markets Interest and Foreign Exchange rate risk Scenarios and Stress Testing Risk Reporting and Key Risk Indicators Case Study Operational Risk Monte Carlo modelling Innovation and Technology Risks Case Study - Innovation Risk in Energy (Samson Fox and Water Gas) Developments in the use and management of energy Generation technology developments Changing energy consumption patterns Corporate and Social Responsibility and Risk The challenge in society s expectation of energy companies risk management a. Conflicting pressure: Sell Energy or Providing Heat & light? b. Reputation and Compliance Risks (Environmental / Fiscal) Reporting and Prioritisation Why it is important? Developing a Risk Aware Culture Role of Corporate Governance in managing operational risk Explaining the benefits of quantifying risks Participatory risk communication and management Future Trends in Operational Risk Management and Energy Wrap Up Risk in Energy Projects Approval of capital projects long /short term risk Retaining optionality Managing Project Risks

6 Registration details Early Booking Rate (before 20 April 2012) Standard Rate (after 20 April 2012) 1700* 2000* Your registration fee includes morning/afternoon refreshment, lunch and your documentation pack. Book online or fax the completed form with your credit card details, or follow up the provisional reservation with a cheque payable to Incisive Financial Publishing Ltd. In order that we process your registration with maximum efficiency, we request that a copy of this booking form accompanies your payment. Please complete the form below in BLOCK CAPITALS. * Please note, prices do not include VAT which is charged at 20%. Discounts cannot be combined and must be made at the point of booking. Please complete your details below when you book onto this course TITLE FIRST NAME JOB TITLE/POSITION DEPARTMENT ADDRESS CITY POST/ZIPCODE TELEPHONE APPROVING MANAGER Payment details LAST NAME COMPANY COUNTRY FAX TRAINING MANAGER I enclose a cheque payable to Incisive Financial Publishing Ltd. New York 4992/12 Please debit my MAESTRO AMEX VISA MASTERCARD DINERS CLUB Valid from (mm/yr) CARD NO Please supply account address if different from above SIGNATURE Expiry date (mm/yr) DATE Security Code Please note your place is not guaranteed until your payment has been received Incisive Financial Publishing VAT No: GB For companies in EU member states only: Please write your VAT/TVA/BTW/IVA/ MCMS/MWST/FPA number here We accept company cheques, credit cards and bank transfers. Please allow a minimum of seven working days for a bank transfer to reach us and phone or fax us when it has been sent. Please state the event name and delegate name to which it relates. T O R E G I S T E R By mail Conference Administration, Incisive Media Haymarket House, Haymarket, London, SW1Y 4RX, UK By tel +44 (0) By fax +44 (0) (646) By michael.squibb@incisivemedia.com Subscriber s to Energy Risk magazine save 20% Visit the Incisive Media web site for an update on our forthcoming conferences and courses at: Special Group Discounts: Group Discounts available. Please contact customer services for further details. Warning: Risk is a registered trademark, and the title, contents and style of this brochure are the copyright of Incisive Media. We will act on any infringement of our rights anywhere in the world. Incisive Media. Cancellation: A refund (less 10% administration fee) will be made if notice of cancellation is received in writing three weeks before the event. We regret that no refunds can be given after this period. A substitute delegate is always welcome at no extra charge. Disclaimer: The programme may change due to unforeseen circumstances, and Incisive Media reserves the right to alter the venue and/or speakers. Incisive Media accepts no responsibility for any loss or damage to property belonging to, nor for any personal injury incurred by, attendees at our conferences, whether within the conference venue or otherwise. *All discounts must be redeemed when booking, discounts will not be valid or applied after this time. Incisive Financial Publishing Ltd reserve the right to decline any discount offers and this offer cannot be used in conjunction with any other offer. Incorrect mailing, data protection: If any of the details on the mailing label are incorrect, please return the brochure to our database administrator at Incisive Media so that we can update our records and ensure that future mailings are correct. Please find our mailing address and fax details above. By registering for James Lam on Banking ERM Incisive Media* will send you further information relating to this event. In addition we will send you information about our other relevant products and services which we believe will be of interest to you. If you do not wish to receive other relevant information from Incisive Media via a particular medium please tick the following relevant boxes: Mail Phone Fax Incisive Media will also allow carefully selected third parties to contact you about their products and services. If you do not wish to receive information from third parties via any of the following media please tick the relevant boxes: Mail Phone Please tick if you are happy to receive relevant information from carefully selected third parties by and Fax Please remember that if you choose not to receive other literature you may miss out on some exclusive offers. *For a list of companies included in IncisiveMedia please see our website Venue details The Kingsley Hotel Bloomsbury Way London WC1A 2SD Hotel Front Desk: