Académique Documents
Professionnel Documents
Culture Documents
January 2010
About Global Association of Risk Professionals
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GARP’s Professional Designation and Certification Programs
Professional Designations Certificate Programs
Creating a Culture of Risk
Awareness TM
Advanced:
Completion earns
certificate
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Energy Risk Professional (ERP) Program
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Energy Oversight Committee
• Recognized experts in diverse areas of energy physical and financial markets
• Design, develop and review all program material
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ERP Program
• Program Coverage
– Physical Energy Markets
• Exploration and Production (Petroleum and
Natural Gas)
• Crude Oil, Refined Petroleum Products,
Natural Gas, Liquefied Natural Gas, Coal,
Electricity, Alternative Energy
– Financial Trading Instruments
– Valuation and Structuring of Energy Transactions
– Risk Management in Financial Trading
– Financial Disclosure, Accounting, and Compliance
• Designation Requirements
– Pass exam
• 8-hour, 180 multiple choice questions offered annually
in May and November
– 2 years relevant work experience
• Not required to sit for exam
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Sample ERP Learning Objectives Addressing Electricity
Physical Markets
• Define “short-term trading arrangements”
• Discuss why electricity is structurally different from other commodities
• List and discuss the “four pillars” of market design
• Compare and contrast the three trading models: wheeling, decentralized, and integrated
• Define the following terms:
– merit order
– contraint
– locational prices
– imbalances
– congestion
– contract path
– ancillary services (list the services)
• Calculate the price congestion if point A has a location price different than point B
Financial Markets
• Discuss the difference between production cost models and hybrid pricing models for forecasting power prices
• Define the characteristics and goals of hybrid pricing models
• Discuss the parameters associated with an electric price jump-diffusion model
• Discuss difference between reduced-form hybrid and fundamental hybrid models
• Calculate the bid curve and determine the market clearing price
• Calculate the cost of generation of electricity and explain why the bid curve may be different
• Construct a generation stack for electricity bid pricing
• Calculate generating unit costs for fuel and emission (NOx and SO2) parameters
• List and discuss the process for modeling power prices
• Discuss the justification of the hybrid model
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ERP Program Information
• 2009 Program (first ERP exam – October 2009)
– 225 candidates from 37 countries, 190 different companies
• Energy Companies: Hess, Occidental, Dominion Resources, DTE Energy,
Koch Industries, Shell
• Financial Companies: Citigroup, Goldman Sachs, Barclays, Standard
Chartered, Deutsche Bank, Credit Suisse, World Bank
• Other: KPMG, Deloitte and Touche, Enrst & Young, McKinsey, Thomson
Reuters, Oracle, Singapore Mercantile Exchange
– Top countries by number of candidates
1. USA 4. Singapore
2. Canada 5. Switzerland
3. Hong Kong 6. UK
– 63.9% Pass Rate
• 2010 Program
– Currently 251 candidates – registration opened December 1, 2009
– Early Registration Ends January 31st
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Approach to Energy Risk Management
Transportation/ Refining/
Production Distribution
Storage Processing
Specialty Specialty
Specialty Companies, e.g. Specialty
Companies e.g.,
Companies, e.g. Companies, e.g.,
Anadarko Transwestern, Valero
PG&E ,
Stoldt Scottish Power
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For more information
• Questions: erp@garp.com
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Creating a culture of
risk awareness.TM
Global Association of
Risk Professionals
www.garp.org