Pace Global

Development of Corporate-Wide Risk Assessment

Clien Need
Client Need:
The client needed to develop a risk assessment of power and fuels risk exposures subject to price volatility, power generation operating performance, and retail load characteristics.


Our Role
Our Role:
In a three-phased approach, Pace Global helped develop the client’s corporate-wide risk management program.  Pace Global worked with the client’s executive team to assess the client’s market risk profile and later determine appropriate risk tolerances.  Pace Global ascertained the net revenue objectives related to each business segment of the company.  Pace Global also gained a thorough understanding of the cause and effect relationship between market price volatility, generation, load and net revenue outcomes from each segment.  For each risk element, Pace Global quantified market price volatility within statistical confidence bands, then evaluated and presented the potential net revenue impact associated with risk elements and contingencies for each business segment.


Results
Results:
Based on Pace Global’s clear and objective assessment of the range of net revenue outcomes, which provided the basis for the development of risk mitigation strategies, the client was able to develop a corporate-wide risk management program.

Pace Global