ETRM Solution – Ways To Use It For Physical And Financial Trading


Price of commodity is mostly volatile and constitute a huge portion of the total production costs. Energy Trade and Risk Management offers a wide range of software solutions that assist risk management and trading of commodities. Comprehensive Energy Trade and Risk Management solutions assist physical as well as financial trading, and can efficiently deal with a lot of commodities, that includes energy, natural gas, metals, soft commodities, oil derivatives, crude oil, and plastics.

What is Energy Trade and Risk Management?

Energy Trade and Risk Management refer to the business processes that are related to managing complicated energy trades or/and portfolios of tangible assets. It is a complete end-to-end procedure to manage physical, deal or financial lifecycle of a power/energy position.

Type of support offered by ETRM solutions

ETRM generally offer front end to back end support. It includes:

  • capturing of deal and management of price
  • scheduling and logistics
  • risk reporting
  • position management
  • valuation
  • optimization
  • accounting,
  • settlement, and
  • regulatory reporting

What type of assistance is offered by Robust Energy Trade and Risk Management?

Energy Trade and Risk Management provides companies with a precise and clear view of the complicated energy portfolios, price exposures and market positions that can be physical and/or financial in nature. Trades and portfolio market exposures associated with them needs to be administered throughout the complete deal lifecycle as trades/positions are subject to price change in market.

What are the functions performed by ETRM processes?

Implementation of Energy Trade and Risk Management help in managing the complexities linked to the portfolio position, trade, and hedge. From capturing the deal to management of risks, to its settlement and invoice, the complete trade lifecycle needs to be managed.

Entities that have market exposure will disintegrate Energy Trade and Risk Management trade lifecycle processes or processes into different business functions such as the front, back and middle office Energy Trade and Risk Management functions.

It is significant to consider that the physical aspect of energy commodity management can get very complicated and challenge to efficiently manage. This is because several energy commodities are effectively managed in different methods as per their transportation medium, storage, scheduling, and delivery.


Energy Trade and Risk Management solutions prove to be the best investment for middle office, front office, risk management, and back office. It offers a clear view of complicated portfolios, that is used by energy suppliers, energy producers, large power consumers and other different companies with substantial commodity price exposures.

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