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What is Risk Management?

Deregulation, volatile commodity prices, and shock events including the collapse of Lehman Brothers,Bear Stearns, and most recently Merrill Lynch are causing investors and shareholders to probe deeper into the risk management practices, analytics and controls in place at public energy companies.

Risk Management is simply the act of employing controls over identified business critical operations, in this instance the future cost of a company’s energy and utilities. It can be as simple as limiting future costs to an increase no greater than Retail Price Index, (subject to market liquidity), while maintaining an ability to take advantage of falling markets.

For many, this represents the bulk of the perceived benefit, which is especially understandable given the current economic climate. However, budget predictability should not come at the cost of long term competitive advantage, which is gained from a more integrated, dynamically driven procurement strategy.

For those in charge of keeping a company afloat, Risk Management is not about becoming an Energy Trader, as awareness of the market, bullishness, bearishness, relative strength, liquidity, illiquidity are only indicators and tools in the operational achievement of procuring the company’s required energy, in line with the agreed strategy.

For many, this micro-analysis has out weighed the over-riding strategic aim, as has been the case for many financial institutions over these recent months.

Why Genesis?

Genesis Certified Energy Managers are experts in this field, and have been providing world-class, integrated, dynamic procurement services to some of the largest companies in the country for almost a decade.

Genesis’s clients are able to take advantage of some of the best rates in the market, while significantly mitigating their risk. Genesis’s experts are able to tailor custom solutions, which give the ability to make controlled decisions in procuring and protecting future energy requirements.

In short, we’ll show you simply, honestly and clearly how to manage your energy budget risk, and increase the likelihood of reducing costs beyond your competitors strategies.