The Importance of Enterprise Data Management in Managing Risk

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We were most fortunate to be invited to sponsor and participate in Triple Point’s Global User Conference, Focal Point, which took place recently in New York, NY. Myself and Shilpa Mullan, our Sales Director based in New York, attended the event. I really appreciated taking part in the Thought Leadership panel, which allowed the panelists to discuss the challenges associated with risk management and the deployment of enterprise software for Trade and Risk Management (ETRM) side and Data Management (EDM). Naturally, ZE falls under the EDM category and Triple Point, ETRM.

Data Discovery and Management

The panel consisted of Jim Caffrey, Director at The Structure Group, Travis Nadelhoffer, VP of Commodity Products at Morningstar, and Dr. Josh Gray, a Senior Derivatives Specialists at FEA. Greg Leck, Triple Point’s VP of Global Business Development, moderated the discussion, which resolved itself into a healthy debate about how risk management really starts with the discovery portion of data management in the front office and culminates in the back office as all the dust settles.

Considering the downstream implications, corporations are under considerable pressure to solidify and formalize the data discovery process, taking it out of the hands of analysts and traders and codifying data management as a unique corporate function. Since the deregulation of North American energy markets and the Californian Energy Crisis, risk control is paramount, necessary, and mandatory. The new best practice for risk control is to automate the collection and validation of data from sources like vendors, ISOs, brokers, and government agencies and combine that with internal data within a corporately accessible and secure database.

The Curve Management Challenge

While the external data management and warehousing problems can be solved, the curve management problem can be just as – or, even more – challenging. During our panel discussion, I suggested that curve development and risk management are the most critical aspects to understanding corporate solvency. The panelists all agreed that companies are beginning to realize that curve management has to be automated and the process owned and validated by the corporation, if it is to evade the risks associated with isolated and manually intensive processes. Naturally, the next step in comprehensive data management is making the connection to downstream business, which is where the folks like Triple Point enter. EDM and ETRM ideally connect seamlessly, joining curve building with risk analytics in order to optimize and protect corporations.

Finding a Solution

The ZEMA Suite has been specifically designed to meet these analytical and reporting needs of those in the energy and commodities industries. It offers robust functionality around the automated collection, validation, and analysis of data. ZEMA manages the corporate curve creation process through ZEMA Curve Manager and fully integrates with one or many of an organization’s E/CTRM, ERP Systems or any other internal or third-party application.

Thanks to Triple Point for inviting us to participate this year. The event was timely and brought people together from across the globe in a common discussion of the challenges we are all facing. For me personally, it was gratifying to meet so many new faces and to really engage in meaningful industry discussion. We were certainly treated with great hospitality and exceptional kindness and we look forward to participating in Triple Point’s future events.

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