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Expert addresses risk management in energy sector

Nov 11, 2011 Walt Wojoiechowski

Expert addresses risk management in energy sector
Consumer credit risk management is a chief concern among investors and business leaders. While the field had gathered steam in the banking sector, largely in response to the financial collapse of 2008 and the ensuing equity crisis, other markets are beginning to employ risk strategies as well.
 Risk managers in the energy sector, for example, are being urged to develop sustainable reporting standards that comply with new regulations such as the Dodd-Frank Wall Street Reform Act. These experts will soon be tasked with handling large volumes of data, underscoring the need for a comprehensive reporting system. However, Mark May, North American risk manager at ConocoPhillips, argues that the success with which managers are able to handle data will be measured by sustainability measures, not some ideal, all-encompassing technology. "There is a tendency in risk management to over-engineer data requirements, but that's not often sustainable on a daily basis," May said, according to Risk.net. "Working across commodities to try to gather a high level of trading data consistently is very difficult. So we came up with a minimum level and everyone agreed. Regions can add to that but they must deliver the minimum."