ZE held its second User Forum and Conference in Vancouver, BC, in October. The event brought together industry and information technology experts to discuss issues involving Enterprise Data Management (EDM) in connection with risk management in energy and commodities trading. EDM and Enterprise Risk Management (ERM) conference addressed various angles of the issue. Different participants and presenters agreed on one thing: there will be more data and even more unstructured data, and we need to allocate more resources and intelligence to make this volume relevant to our business operations and risk management systems.
Judging from the event, the process of simplifying the matter is nowhere near the finish. Companies are drowning in data, which do not necessarily deliver us information we need. For good decisions, businesses need good data, reliable and accurate. This information is critical for conducting risk assessment and managing risks.
Forward curve generation became a separate discussion topic given the importance of this tool for risk management. The emphasis is put on the expectations of more standardized, computationally intensive methodologies in developing forward curves. Anguel Grigorov, a presenter from Platts, identified the following areas of forward curve application:
- Mark-to-market existing positions/books
- Calculate VAR, perform stress-testing, scenario building
- Inputs to long-term forecasts
- Valuation tools for M&A purposes
- Trading strategy design
Internally, we have to deal with the challenge of overlapping goals and requirements, which can vary by departments and functions. But even when goals and objectivesth are sorted out , developing a seamless system of data flow through front-, middle- and back-offices, data translation, confirmation, integration and validation can be and usually is the largest challenge for corporations, as it was pointed out by Dan Brummer from Allegro. Agile integration of diverse enterprise components, internal and external, allows for successful execution of various risk management processes, whether that is managing market price exposure, liquidity exposure, counter-party exposure or achieving hedge accounting compliance. This integration can be successful realized through the best-in-breed ETRM system.
For all presentations visit: http://www.ze.com/media-room-conference-materials
After the success of our Vancouver event, we are excited to announce a complimentary ZEMA User Forum and ZEMA Lunch and Learn session in London, United Kingdom, on Monday, November 21. The ZEMA User Forum will take place from 8 a.m. to 12 p.m. at The Park Lane Hotel, London.
Among the topics will be a business update on ZE’s plans for expansion into Europe, product development and the company’s product roadmap. There will also be a feedback and question and answer opportunity for users.
The ZEMA Lunch and Learn session will be held after the Forum, between 1 p.m. and 5 p.m. at the same venue. This session will include a presentation on Data Management and Analysis for European Energy and Commodity Markets.
Join us at this exciting and informative event. If you would like more information, please visit our website at www.ze.com.