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Lacima riskAnalytics

Business challenges Top 5 business benefits Overview of solutions

Simple valuations to large and complex risk analytics projects
Lacima riskAnalytics is a pricing, valuation and risk management application, which is designed specifically for energy and commodity market participants. It delivers a no-compromise solution which enables all stakeholders to have a high level of confidence in the risk metrics that are used to guide business.

Risk quantification at its best
All aspects of Lacima riskAnalytics are designed around the modeling frameworks, numerical techniques, models, algorithms, and other applied research developed by Lacima's principals, Les Clewlow and Chris Strickland, and reflects Lacima's considerable real-world experience.

Top 5 business benefits

  • Consolidated risk view across multiple commodities and regions
  • More accurate valuations with single, multi factor and hybrid models
  • Valuations across portfolios of contracts and physical assets
  • Integration with existing systems - avoiding costly replacements
  • Auditability for regulatory risk reporting

Click on the diagram to view details on each solution offered by Lacima riskAnalytics.




Business challenges

Complexities of multi commodity contracts and physical assets
Front and mid-office staff face challenges in obtaining rigorous risk metrics that take into consideration the unique behaviour of commodity prices, principally the effects of:

  • Seasonality
  • Mean reversion and exposure to spikes
  • Differences in construction of regional energy markets
  • Complex contracts with embedded optionality
  • Physical asset operational constraints

Furthermore, ad-hoc spreadsheets and simplistic models do not capture the complexities and constraints of specialized areas such as swing, storage and generation assets.

Consolidating a view of risk positions across multiple commodities & regions
From a risk perspective, organizations are often forced to utilize multiple and disparate deal capture, scheduling, back office and reporting systems. These systems tend to address specific commodities and regions and be limited in their risk management and valuation capabilities.

Such an IT landscape makes it very difficult and costly to obtain a consolidated view of value and risk across an entire trading and physical portfolio. This also does not provide the level of information accuracy and transparency required to support business decisions and fulfil regulatory risk reporting obligations.

Lacima riskAnalytics provides an innovative solution to address these challenges in a cost effective manner.

 
Overview
Consulting & Advisory
Services
Lacima Software
Training
Publications
Lacima riskAnalytics
Lacima Storage
Lacima Swing
Case Studies

Mark to Market
Pricing
Value at Risk
Cash flow /
Earnings at Risk
Credit Risk
Hedge Optimization
Portfolio Optimization
Asset Dispatch &
Valuation
Retail Load Model
Bid Stack Model
Storage
Swing
LNG & Cargo
Simulation & Data
Analysis
Forward Curves
Statistics & Reporting
Parameter Estimation
Scenario Analysis
Load Forecasting