KITE 2025 New Product Award — Local IT | SACEEC
Case Studies/Energy Trading Entity
Trading & Market RiskEnergy Trading

Market Exposure Visibility for an Energy Trading Entity

KRS built a dedicated trading risk register with scenario-tested market exposure, improved liquidity governance, and rationalised trading controls.

4Scenario stress tests
1Dedicated trading risk register
100%Counterparty visibility

Operating Environment

An energy trading desk active in crude oil, refined products, and emerging electricity markets managing price, counterparty, and liquidity exposure.

The Challenge

Market risk was not fully scenario-tested and reporting focused on transactions rather than structural exposure.

  • Counterparty exposure lacked structured visibility
  • Hedging governance required strengthening
  • Electricity trading reform creating new risk dimensions

Trading Risk Workshops

KRS facilitated sessions with trading and finance teams using Dimeri.

  • Commodity price shock scenarios
  • Counterparty default modelling
  • Liquidity stress testing
  • Electricity price volatility analysis

Risk Register Development

A dedicated trading risk register was built mapping market and liquidity exposure to financial statement sensitivity.

Control & Governance Review

Hedging controls, counterparty approval processes, and settlement oversight were assessed and strengthened.

Formal Reporting

Structured trading risk reports and executive-level market exposure dashboards were produced.

Impact

Clear market exposure visibility was achieved with improved liquidity governance and rationalised trading controls.

About Energy Trading Entity

An energy trading desk active in crude oil, refined products, and emerging electricity markets, managing price volatility, counterparty settlement risk, liquidity, and regulatory reform exposure.

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