RiskSpectives^®

Pace Global has developed RiskSpectives® (“System”), a proprietary risk management system to measure and monitor the risk exposure of its clients. RiskSpectives^® is a web‑based application that can be securely accessed via the internet.  The system supports multi-commodity risk allowing the management of portfolios consisting of multiple volatile commodity components.  RiskSpectives^® allows our clients to constantly monitor their energy positions and the possible effect of adverse price migration on financial targets.  The system can also be used to preview the impact of pending trades and perform What-If scenario analysis, which is a valuable tool in proactive planning for plausible market movements.  The system calculates risk exposures as a consequence of observed and implied price volatility. RiskSpectives^® allows our clients to make effective hedging decisions and protect expected earnings, utility rates or cost objectives.

• Initial Configuration: RiskSpectives^® is configured to allow users to customize the system and book structure based on a number of factors, including energy commodities requirements and generating assets. This flexible design provides benefits to report generation, risk protocols and controls. 
• Position Tracking: RiskSpectives^® allows our clients to track hedge positions from different perspectives - from a higher level, such as at the total energy commodity level for the next 12 months, to a more detailed level, such as natural gas by month and  location.
• Deal Capture: The system supports easy deal capture for natural gas, coal, oil and power transactions.  Supported transaction types include fixed-price hedges (swaps, forwards, futures), options (calls, puts, caps and floors) and heat-rate index structures.
• Dashboard: Another feature of RiskSpectives^® is the ability to display client-specific information on dashboards, displayed after into the system. The dashboard is customizable to client needs and can contain weather, forward curve information, portfolio summary information and archived documents.
• Risk Quantification: Value at Risk (“VaR”) is a statistical measure of how much a position or portfolio can change in value over a certain time horizon - called the holding period.  The system calculates risk using the VaR concept for a specified holding period and confidence level. This is typically 97.5% confidence and 10 days – both which can also be defined by the user. 
• Reporting: Another standard feature of the RiskSpectives® system is a set of reports that can be used by the front, middle, back office and senior management to monitor, manage, and validate the portfolio and risk metrics.