Pace Global

RiskSpectives ®

Pace Global has developed RiskSpectives®, a proprietary mid-office commodity risk management and reporting system, to measure and monitor the risk exposure of its clients. RiskSpectives® is a web-based application and supports multi-commodity risk position tracking and measurement, allowing the management of portfolios consisting of multiple volatile commodity components.  RiskSpectives® allows our clients to monitor the risk exposure of their energy positions and the possible effect of beneficial or 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, 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 meet cost and stability 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, resource books 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 portfolio level, such as at the total energy commodity book 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 in the system for monitoring, alert and protocol enforcement purposes. 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 defined 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. 
Pace Global