As a risk professional in the energy sector, your overall risk management objectives can vary depending on the specific industry and company you work for. However, here are some additional areas of risks that you have to focus on your day to day tasks that you may typically perform:

  1. Risk Areas: Evaluate and analyze potential risks associated with energy markets, including price volatility, supply disruptions, regulatory changes, and geopolitical factors. Identify areas of vulnerability and develop strategies to mitigate risks.
  2. Market Monitoring: Keep a close watch on energy markets, including tracking commodity prices, market trends, and news that may impact energy markets. Stay updated on market fundamentals, such as supply and demand dynamics, weather patterns, and geopolitical events.
  3. Risk Modeling and Analysis: Utilize quantitative tools and models to assess and quantify risks associated with energy trading activities. Develop risk models to simulate potential scenarios and assess the impact on portfolio performance. Conduct stress testing and scenario analysis to identify potential vulnerabilities and evaluate risk exposure.
  4. Risk Mitigation Strategies: Develop and implement risk management strategies to mitigate exposure to energy market risks. This may involve using derivatives, hedging strategies, options, and other financial instruments to reduce price volatility and protect profit margins.
  5. Compliance and Regulatory Monitoring: Stay abreast of relevant regulatory requirements and ensure compliance with industry regulations and guidelines. Monitor and interpret changes in regulations and assess their potential impact on energy trading activities and risk management strategies.
  6. Reporting and Documentation: Prepare and present regular reports on risk exposure, portfolio performance, and risk management activities to management and stakeholders. Maintain accurate and up-to-date documentation of risk management processes, policies, and procedures.
  7. Collaboration and Communication: Work closely with traders, analysts, finance teams, and other stakeholders to assess risk appetite, align risk management strategies, and communicate potential risks and opportunities. Collaborate with internal and external stakeholders to ensure effective risk management practices are in place.

It’s important to note that these tasks can vary based on the size and nature of the organisation you work for, as well as the specific focus of your role as an energy risk professional. This has been my experience working in the energy industry please comment below if you have any additions to make.