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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.
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Consolidated risk view across multiple commodities and regions
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More accurate valuations with single, multi factor and hybrid models
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Valuations across portfolios of contracts and physical assets
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Integration with existing systems - avoiding costly replacements
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Auditability for regulatory risk reporting
Click on the diagram to view details on each solution
offered by Lacima riskAnalytics.
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:
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Seasonality
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Mean reversion and exposure to spikes
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Differences in construction of regional energy markets
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Complex contracts with embedded optionality
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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.
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Overview
