From volatility to opportunity, risk is no longer something to avoid, but something to understand and manage. Organizations that embed risk thinking into strategy gain the edge in tomorrow’s energy markets.
Editorial
Dear readers,
In recent years, the energy sector is facing global upheaval, driven
by political shifts worldwide and rapid technological changes in
both generation and consumption.
Societal pressures to decarbonize industry, along with digital
transformation and AI, are adding further momentum to this rapid
development. Moreover, the eruptive changes in global energy
supply due to geopolitical shocks and changing international trade
relations are pushing “energy” to the top of the agenda for every
major European economy. All those developments are impacting
energy markets enormously, reshaping risks across the entire
energy trading value chain.
The surge in uncertainty and the growing number of influencing factors demand more than just a change in existing risk
management. Instead, they require a transformation towards a
more interconnected and resilient risk framework, plus advanced
methods to guide tomorrow’s decisions.
The long-standing shift from price-taking to risk-taking has
progressed, yet there is a need for even stronger guardrails
to navigate future risks. For example, the growing number of
prosumers in retail portfolios poses new challenges for precise
forecasting, creating physical volume risk. At the same time,
supply flexibility as a hedge (such as BESS) requires intraday
and even real-time risk management capabilities more than
ever. Strategies that proved successful in the past may no longer
guarantee future outcomes. Proactive portfolio management
across the entire trading value chain, combined with disciplined
risk oversight, is essential to remain competitive.
This edition of FORRSight Magazine advocates forward-looking
and preventive risk-thinking, designed to limit substantial losses
and preserve resilience in turbulent markets.In a landscape where
risk-adjusted decisions matter more than ever, organizations that
couple agility with resilient risk controls will be better positioned
to master increasing uncertainty and high volatility. It is imperative
to embed resilient and new risk controls into strategy, governance,
and operations, so that value creation remains sustainable, even in
times of structural transformation in the energy market.
ContentTopics
- Earthquakes and Tectonic Shifts in Energy Markets
- Market Whiplash: Turning Risk into Resilience in Energy Trading
- The New Energy Trading Landscape: Keeping Pace with Recent Advancements
- Market Trends: New Drivers for Higher Demand in Risk Management
- Transformation of Risk Management – From Price Taker to Risk Taker
- Voices from the Market: Shaping Future Risk Management Together
- A Methodological Risk Management Blueprint for Energy Markets in a VUCA World
- The New Era of Enterprise Risk Management: Risk Landscape Overview
- New Dynamics are Redefining Energy Trading
- The Unknown Pitfalls of Taylor Approximation in Energy Trading Valuation
- Voices from the Market: Insights from IT Leaders Driving Tomorrow’s Markets
- Entrepreneurs, Leadership, and Risk Management – Think About Risks, Not Rules
- Clearing: Take Control of Unexpected Events
- The Mechanics of Settlement Risk in OTC Energy Trading Markets
- Renewable Energy for Tomorrow – Some Thoughts on Quantifying Uncertainty in Prediction
- Ten Steps for Dealing with Cyber Risks
- The Evolution of Data for Enterprise Risk Management in an Energy Company