Risk Management System is built on top of several existing modules using Xenergie folder structure, profile arithmetic and specialized plug-ins.
Assessment:
Module Contract Manager administrates contracts and can filter them thus creating arbitrary trading portfolios. For each risk portfolio its total purchase and sales are accumulated resulting in current open and closed positions. Acquisition cost and realized Profit&Lost are calculated automatically as well. At the same time a special importer downloads current future and spot prices from EEX market exchange together with necessary exchange rates to asses contracts in foreign currencies. Simultaneously, another specialized function computes hourly profile out of future and spot prices that is used for appreciation of positions or Market Values. Then the VaR module calculates Value-At-Risk for each portfolio. Finally, Mark-To-Market can be easily obtained via profile arithmetic. All prices are automatically converted to home currency. And all these can be exported using standard Xenergie or specialized risk reporting tools.
Management:
Each portfolio is appreciated by hourly profile forward curve with prices drawn from respective energy exchange market. System manages not only power but can also work with cross border transfer capacities and other utilities. Adding new contract will immediately adjust values in all affected portfolios with all their profiles up to VaR. Creating speculative and shadow contracts allows user to test various trading strategies and to see their impact on risk indices. This greatly helps managing market induces risk within the company rules defined by the risk manager.
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