Energy Risk Management

Managing Energy Risks

As we progress towards a Net Zero future, both the energy generation and legislative frameworks are undergoing profound shifts. Mandates like the UK’s Net Zero emissions rule and the Paris Agreement are compelling entities, from companies to governments, to evolve. Predominant energy consumers are at the epicenter of this transformation, aiming to traverse an ever-evolving market while addressing multifaceted demands. This new era presents notable opportunities, but also inherent risks, impacting finance, supply chains, legislative compliance, and CSR.

As the world pivots from fossil fuels to renewables, consumers must brace for more volatile trading scenarios and fluctuating prices. A prevalent lack of risk governance is evident however the dynamic global commodity market necessitates a forward-thinking, multi-dimensional risk approach.

Energy Risk Management Strategies

Navigating the energy market requires a deep understanding of risk. By assessing your risk appetite, we ensure a tailored fit between the uncertainties you are willing to take and your procurement objectives. Our collaboration doesn’t end at alignment; it’s an ongoing partnership. We continue to engage with your team, offering insights and clarity.

Being well-informed is essential in today’s complex energy landscape. That’s why we provide a comprehensive view that combines both macro and micro perspectives. On one hand, you’ll receive an essential overview of the broader economic shifts in the constantly adapting market. On the other, we zoom in to offer a detailed insight into the specific localised risks. This ensures you have a rounded understanding of the territories you’re active in, from global trends down to local nuances, allowing you to make informed decisions at every level.

Our
Process

Risk Identification

Our team of Energy Risk Managers start by identifying potential energy risks to your business. This process involves scrutinising areas such as legislation, commodity markets, geopolitics, and historic trade performance.

Risk Quantification

Following risk identification, we quantify the risks to gauge their potential impact on your business. Our team utilises advanced quantification tools to provide a comprehensive picture of each risk.

Risk Reduction Strategy Development

In the next stage, we develop bespoke energy risk management strategies and solutions to mitigate the identified risks. These strategies are tailored to your unique business environment, factoring in all identified and quantified risks.

Informed Decision Making

Finally, we provide regular reporting and forecasting to keep you updated on risk levels and trends. With this information to hand, you can make informed decisions that align with your overall procurement and investment objectives.

Why choose McGrady Clarke for your Energy Risk Management?

We have complete access to global wholesale energy markets allowing our Carbon Analysts and Energy Risk Managers to structure and implement a fully flexible bespoke risk management strategy. McGrady Clarke’s team of Energy Risk Managers, Carbon Analysts and Energy Traders operate with a strict data-driven approach, analysing the market to mitigate risk, spot data trends and provide clarity and assurance in the execution of purchasing decisions.

Our service stands apart from the rest of the market thanks to the high quality and variety of carbon services we provide; these supplement the traditional comprehension of energy risk management. We assign a dedicated account manager who will provide expert management of your account and risk management strategy.