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Why Risk Quantification is Essential for Energy Portfolios
24 Aug 09
Author: Dr Robert Dykstra, Principal Consultant - Lacima Group



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Managing the growth in value of a company in a world of uncertainty is a daunting task. There are so many variables that change from day to day that it is usually easier to ignore the uncertainty altogether, or to be convinced that several prescribed scenarios are sufficient to explain the value impact of market variability.

This paper answers key concerns facing organisations trading in multiple commodities in today's uncertain financial climate such as: What quantifiable risk factors are there? How can I take advantage of market uncertainties? How does risk quantification create value for my company?
 
The paper presents the range of risk factors that should be considered, the latest methods employed in their quantification, and the business value to be attained by their measurement.

 
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