Insights

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Risk Management Insights

How the best get better

February 2017

Aegent was asked recently to make a presentation on risk management to the monthly Management Committee meeting at a chemical processing company. The company is among the “Gold” list of Canada’s Best Managed Companies. Being a sophisticated, well-run organization, it knows a lot about risk management already. Read more >>


Pay attention to Dawn price risk

March 2015

Gas buyers at Dawn need to keep a close eye on the changing supply/demand balance at Dawn, and be prepared to manage the price risks that affect Dawn uniquely. Read more >>


Assessing Risk in the CHPSOP 2.0 Program

November 2014

Careful planning and risk identification and management are necessary in order to fully realize the opportunity offered by the OPA's Combined Heat and Power Standard Offer Program. Identifying risks during the proposal stage and distributing them over the contractual framework will help ensure the project is profitable by design. Read more >>


Under the Influence of Last Winter's Memories?

October 2014

As we head into another winter, bad memories of last winter may lead buyers to lock up the price on a large proportion of their winter gas supply. But is this the prudent thing to do? Read more >>


Hedging: A Tool for Risk Reduction, Not Cost Reduction

July 2014

To hedge effectively, energy buyers need to understand what hedging is for, and what it is not for. Hedging is a tool for controlling risk to keep energy prices and price changes within acceptable limits. Read more >>


Like coyotes after a wounded animal ...

April 2014

... gas retailers are eagerly stalking residential gas buyers wounded by the recent sharp increase in utility gas supply charges. But buyers need to understand what the utility rates really represent to make an informed decision. Read more >>


If you can keep your head ...

February 2014

... when all about you are losing theirs ... Read more >>


The Hidden Opportunity Cost of Hedging

October 2013

Locking in an arbitrary proportion of one's supply portfolio in case prices rise is an inefficient way to manage the risk of energy market uncertainty. And because it is inefficient, it is expensive. Read more >>


Think of Hedging as Just an Umbrella for Unpredictable Weather

September 2013

Deciding when to hedge should be as easy as deciding when to take an umbrella in the morning. The only tricky part is assessing the "probablility of precipitation" in the energy market. Read more >>


Hedging: There's a Better Way than Market Timing

May 2013

The problem with market timing as a hedging philosophy is that time is never clear except in hindsight and there is a cost for being wrong, whether the energy buyer is too soon or too late. There is a better way. Read more >>