Energy Markets and Risk Management Training Course

Duration 10 days 20 modules · 65 contact hours
Level Intermediate Certificate on completion
Who attends Energy Risk Manager, Commodity Trader and others
Fee from USD 2,200 KSh 190,000 for Kenyan organisations
Where 52 cities + online See dates by city
Next start 16 Nov 2026 Course code SD-RM-061

Before you join: Participants should understand basic financial statements, percentage changes, discounted cash flow concepts and the commercial purpose of contracts.

Dates & prices

Two start dates a month in every city, and live online on weekdays or weekends. Fees are per participant; classroom fees include tuition, materials, lunch and refreshments, and the certificate.

Suggest a date or city

Showing the next six months. Later dates, other cities and private deliveries for your team are available on request.

Course overview

Energy producers, utilities, industrial consumers, trading firms and financial institutions face material exposure to volatile commodity prices, basis differentials, foreign exchange rates, interest rates, counterparty default and liquidity calls. A poorly structured hedge can create accounting volatility, lock in uneconomic prices, exceed approved limits or fail to protect the physical position. Effective energy risk management requires a clear view of market drivers, contractual exposures, derivative instruments, risk metrics, controls and decision rights.

This course examines the global energy markets and the financial risk management methods used by commercial and trading organisations. Participants analyse crude oil, refined products, natural gas, LNG, power, coal, freight and carbon markets; construct forward curves; value common energy derivatives; quantify price exposure; and select hedging instruments. The course also addresses basis risk, volume risk, credit exposure, liquidity risk, margining, Value at Risk, stress testing, hedge accounting, risk limits and governance.

Teaching combines focused technical briefings with market cases, pricing calculations, group analysis, trading and hedging simulations, and structured application planning. Participants progressively develop an energy risk register, exposure map, hedge proposal, risk reporting pack and control framework using realistic commercial data. They leave with a complete energy market risk management plan that can be adapted for a utility, refinery, industrial consumer, energy trader, bank commodity desk or investment function.

The course is designed for professionals who already work with energy commodities, treasury, finance, procurement, trading, operations or risk. It is particularly useful where teams need to connect physical commercial decisions with derivatives, financial reporting and approved risk appetite.

What you will be able to do

  • Analyse supply, demand, storage and transport drivers across major energy commodity markets
  • Construct forward curves and identify contango, backwardation, basis and location spreads
  • Calculate physical and financial energy exposures using position, volume and price data
  • Value forwards, futures, swaps and options using market conventions and payoff methods
  • Design hedge strategies matched to price risk, basis risk, volume risk and liquidity constraints
  • Measure market risk using Value at Risk, stress testing, sensitivity analysis and scenario analysis
  • Assess counterparty credit exposure, collateral requirements and liquidity-at-risk indicators
  • Produce an energy risk management plan with limits, controls, reporting and hedge recommendations

Benefits of attending

For you

  • Confidently explain energy price exposures and hedge choices to senior decision-makers
  • Build defensible hedge recommendations using market data, positions and risk metrics
  • Interpret forward curves, basis spreads and option payoffs used by energy trading desks
  • Improve career mobility across energy risk, treasury, trading, procurement and finance roles
  • Produce management reporting that connects commercial positions with financial risk limits

For your organisation

  • Improved identification of commodity price, basis, volume and liquidity exposures
  • More disciplined hedge decisions aligned with approved risk appetite and limits
  • Clearer oversight of counterparty credit, collateral calls and concentration risk
  • Better risk reporting for trading, procurement, treasury, finance and executive committees
  • Reduced operational and financial loss potential from poorly controlled energy positions

Course modules

20 modules over 10 days

Participants can explain how physical and financial energy market participants transfer and retain risk.

  • Physical energy value chains from production through transport, storage and consumption
  • Commercial roles of producers, utilities, refiners, consumers, traders and banks
  • Spot, forward and derivatives markets within energy price formation
  • Risk transfer between physical contract holders and financial market participants
  • OTC and exchange-traded markets compared through liquidity, transparency and standardisation
  • Energy risk taxonomy covering market, credit, liquidity, operational and legal risks

Participants can identify price drivers and benchmark relationships in oil and refined products markets.

  • Brent, WTI and Dubai benchmarks within global crude pricing
  • API gravity and sulphur content as crude quality differentials
  • Refinery yields linking crude inputs with product price exposures
  • Crack spreads measured between crude oil and refined products
  • Inventory data, OPEC policy and geopolitics affecting oil prices
  • Pipeline, tanker and terminal constraints shaping regional price differentials

Participants can analyse the distinct commercial and pricing characteristics of gas, LNG and power markets.

  • Henry Hub, TTF and JKM benchmarks for gas pricing
  • Seasonality, storage capacity and weather-driven natural gas demand
  • LNG cargo economics, destination flexibility and shipping exposure
  • Power market merit order and marginal generation price formation
  • Spark spreads and dark spreads for generation margin analysis
  • Transmission congestion and nodal pricing creating power basis risk

Participants can assess linked coal, freight and carbon exposures within energy portfolios.

  • Thermal and metallurgical coal grades with benchmark price references
  • Freight rates, vessel classes and voyage charter exposure
  • European Union Allowances within emissions trading scheme compliance
  • Carbon price pass-through into power and industrial production costs
  • Clean dark spreads incorporating coal, power and carbon prices
  • Cross-commodity correlations affecting integrated energy portfolio risk

Participants can map contractual energy exposures into measurable price, volume and basis risks.

  • Contract price formulas linking benchmarks, differentials, currencies and indexation
  • Take-or-pay clauses and volume flexibility creating contingent exposures
  • Delivery points, quality specifications and timing terms driving basis risk
  • Map purchase, sales and inventory positions by commodity month
  • Separate fixed-price, floating-price and indexed contract cash flow exposures
  • Exposure register linking commercial contracts with accountable risk owners

Participants can construct and interpret forward curves for pricing and hedging decisions.

  • Settlement prices, bid-offer spreads and market data quality checks
  • Forward curve construction from liquid quotes and interpolation assumptions
  • Contango and backwardation interpreted through storage and convenience yield
  • Calendar spreads measuring relative value between delivery periods
  • Basis curves comparing local prices against traded benchmark contracts
  • Curve changes decomposed into parallel shifts, twists and seasonal movements

Participants can calculate payoffs and select linear derivatives for defined energy exposures.

  • Forward contracts priced using delivery terms, credit and funding adjustments
  • Futures contracts, contract months and daily variation margin mechanics
  • Commodity swaps exchanging fixed prices for floating index settlements
  • Calculate long and short hedge payoffs under changing prices
  • Exchange basis risk between physical exposure and futures settlement location
  • Hedge ratio selection using exposure volume and contract specifications

Participants can evaluate option strategies that protect budgets while retaining selected price participation.

  • Call and put option payoffs for energy buyers and sellers
  • Option premiums, intrinsic value and time value at expiry
  • Volatility, strike price and maturity effects on option value
  • Collars combining purchased protection with sold option premium income
  • Asian options and average-price settlement for volume-linked exposures
  • Structured hedge suitability assessed against policy, liquidity and downside risk

Participants can consolidate physical and derivative positions into a daily risk view.

  • Trade capture fields required for accurate energy position reporting
  • Net position calculation across physical contracts, derivatives and inventory
  • Mark-to-market valuation using settlement curves and contract differentials
  • Realised and unrealised profit and loss distinguished clearly
  • Daily position reports reconciled with trader records and confirmations
  • Independent price verification controls for less-liquid energy instruments

Participants can design and assess hedge strategies for common energy commercial exposures.

  • Define hedging objectives using risk appetite, budgets and commercial constraints
  • Natural hedges identified between revenues, costs and operational assets
  • Static hedges compared with layered and rolling hedge programmes
  • Minimum-variance hedge ratios estimated from historical price relationships
  • Basis, volume and timing mismatch assessed through hedge effectiveness analysis
  • Document hedge rationale, instrument selection and residual risk acceptance

Participants can quantify market risk using sensitivity measures, Value at Risk and stress tests.

  • Price sensitivity calculated for each commodity, location and delivery month
  • Value at Risk estimated using historical simulation methodology
  • Parametric Value at Risk assumptions, inputs and limitations
  • Expected shortfall compared with Value at Risk for tail losses
  • Stress tests based on historical shocks and hypothetical scenarios
  • Risk factor mapping across outright prices, spreads and volatility

Participants can evaluate diversification, concentration and correlation effects within energy portfolios.

  • Portfolio aggregation across oil, gas, power, carbon and freight positions
  • Correlation matrices interpreted for commodity diversification and concentration analysis
  • Spread risk separated from outright price risk exposures
  • Concentration limits applied by commodity, tenor, location and counterparty
  • Scenario analysis testing correlated shocks across linked energy markets
  • Risk contribution analysis identifying positions driving portfolio volatility

Participants can assess counterparty exposure and apply credit controls to energy trading relationships.

  • Potential future exposure estimated for open derivative transactions
  • Current exposure calculated from positive mark-to-market replacement values
  • Credit ratings, financial ratios and qualitative counterparty assessment factors
  • Credit limits structured by counterparty, tenor, product and settlement risk
  • Wrong-way risk identified between counterparty health and commodity prices
  • Netting agreements and close-out provisions reducing bilateral exposure

Participants can forecast collateral needs and manage liquidity risks arising from energy trading.

  • Initial margin and variation margin under exchange clearing arrangements
  • Credit Support Annex terms governing collateral thresholds and transfers
  • Margin call forecasts built from stress prices and portfolio sensitivities
  • Liquidity-at-risk measured from collateral, settlement and funding requirements
  • Eligible collateral, haircuts and concentration restrictions within margin arrangements
  • Contingency funding plans for extreme price moves and margin calls

Participants can identify contractual documentation and lifecycle controls required for controlled energy trading.

  • ISDA Master Agreement provisions affecting derivatives close-out and netting
  • EFET General Agreement terms for European energy transactions
  • Trade confirmations matched against approved economic and legal terms
  • Contract authority matrices separating trading, approval and settlement duties
  • Lifecycle controls from deal capture through confirmation, settlement and reconciliation
  • Dispute management procedures for pricing, volume and invoice differences

Participants can explain how hedge designation and effectiveness affect financial reporting under IFRS 9.

  • IFRS 9 hedge accounting objectives and qualifying relationship requirements
  • Cash flow hedges for forecast energy purchases and sales
  • Fair value hedges for fixed-price commodity commitments and inventory
  • Hedge documentation specifying risk, instrument, ratio and effectiveness method
  • Cost of hedging treatment for option time value
  • Financial statement disclosures for derivatives, risks and hedge reserves

Participants can build a practical governance structure for energy market risk decisions.

  • Risk appetite statements translated into measurable energy risk limits
  • Delegated authorities defining trading, hedging and escalation decision rights
  • Limit framework covering Value at Risk, position and stop-loss measures
  • Daily management information reporting exposures, limits, profit and liquidity
  • Risk committees reviewing exceptions, hedge performance and emerging exposures
  • Three lines model assigning business, oversight and assurance responsibilities

Participants can identify non-market risks that can undermine energy trading and hedging programmes.

  • Operational risk events involving trade capture, settlement and valuation failures
  • Front, middle and back office segregation of duties
  • Model risk controls for curves, volatility inputs and valuation assumptions
  • Market conduct requirements addressing manipulation, disclosure and insider information
  • Cybersecurity controls protecting trading systems, market data and confirmations
  • Incident escalation, root-cause analysis and corrective action tracking

Participants can assemble an integrated framework connecting exposures, hedges, risk metrics, controls and reporting.

  • Risk register structure linking exposures, causes, controls and owners
  • Hedge policy sections covering objectives, instruments, limits and approvals
  • Management dashboard combining positions, Value at Risk and liquidity metrics
  • Counterparty framework integrating credit limits, collateral and legal documentation
  • Scenario library covering price shocks, basis moves and operational disruptions
  • Implementation roadmap sequencing data, systems, governance and capability actions

Participants can build, review and present a complete energy risk management proposal for a defined commercial portfolio.

  • Assess a multi-commodity portfolio using contract, market and position data
  • Construct forward curves, exposure maps and mark-to-market valuations
  • Quantify Value at Risk, stress losses and liquidity requirements
  • Recommend hedges addressing price, basis, volume and credit exposures
  • Define limits, governance roles, reporting cadence and control actions
  • Present risk management proposal with assumptions, decisions and residual risks

Exercises and examples are adapted to each cohort's sectors and roles.

What you take back to work

  1. Energy exposure register template
  2. Forward curve analysis model
  3. Derivative payoff calculation workbook
  4. Energy hedging strategy template
  5. Market risk reporting dashboard
  6. Energy risk management plan

Who should attend

  • Energy Risk Manager — needs integrated market, credit, liquidity and control methods
  • Commodity Trader — needs disciplined position measurement and hedge decision support
  • Treasury Manager — manages collateral, liquidity and financial counterparty exposures
  • Procurement Manager — manages commodity price risk within supply contracting decisions
  • Finance Manager — assesses hedge accounting, valuation and financial reporting consequences
  • Energy Analyst — builds market views, forward curves and management risk reports

Skills and tools covered

Energy market analysisDerivative valuationHedging strategy designMarket risk measurementCounterparty credit controlRisk governance reporting

Tools and standards

ISDA Master Agreement, EFET General Agreement, IFRS 9, Value at Risk

How the course runs

Training methodology

The course uses short instructor briefings to establish market conventions, valuation methods and control principles. Participants then work through energy market cases involving producers, utilities, industrial consumers and trading portfolios. Group exercises cover forward-curve interpretation, derivative payoffs, exposure measurement, hedge selection, credit assessment and risk reporting. Simulations test decisions under price shocks, basis moves, margin calls and counterparty stress. Each participant applies the methods to a selected business context and develops components of an energy risk management plan.

Requirements and prerequisites

Participants should understand basic financial statements, percentage changes, discounted cash flow concepts and the commercial purpose of contracts. Prior exposure to commodities, energy procurement, trading, treasury, finance, audit or risk is helpful. Participants should be comfortable interpreting tables and performing straightforward spreadsheet calculations. No prior derivatives valuation, programming, econometrics, trading licence or advanced mathematics is required. The course explains energy contract conventions and derivative mechanics before applying risk measurement and hedging methods.

A typical training day

08:30 – 10:30First session
10:30 – 10:45Refreshment break
10:45 – 12:30Second session
12:30 – 13:30Lunch and networking
13:30 – 15:00Third session
15:00 – 15:15Refreshment break
15:15 – 16:30Workshop and daily review

Live online deliveries follow the same structure in East Africa Time, with shorter screen blocks and longer breaks.

What the fee includes

  • Instruction by a practitioner facilitator
  • Full course workbook and materials
  • Exercise files, templates and case studies
  • Refreshments and lunch on classroom deliveries
  • Certificate of completion
  • Post-course application plan

Frequently asked questions

Participants need basic finance literacy and comfort with spreadsheet-style calculations. Experience in energy, commodities, treasury, procurement, finance or risk is useful, but prior derivatives training is not required.

Bring a laptop for calculations and case materials if attending in person. Participants may also bring a non-confidential example of an energy contract, price exposure or risk report relevant to their role.

The course suits professionals managing or supporting energy price exposure, commodity trading, procurement, treasury, finance, risk, operations or compliance. It is appropriate for commercial and control-function staff who need a shared technical language.

This course concentrates on physical energy contracts, commodity benchmarks, forward curves, basis risk, margining and energy derivatives. General risk concepts are taught through oil, gas, power, carbon, coal and freight cases rather than broad financial market examples.

Participants can use the templates to map exposures, assess hedge alternatives, calculate market risk and improve reporting. The capstone proposal provides a structured starting point for a workplace risk management initiative.

Each training day runs from 08:30 to 16:30 and provides about 6.5 contact hours. The first week establishes market mechanics, contracts, valuation and hedging; the second week focuses on risk measurement, credit, liquidity, governance and the capstone.

Questions about this course?

Ask about dates, fees, group bookings or running it for your team. Our training team replies by email.

Ask on WhatsApp info@skillsetdevelopment.com

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