Service

Risk Advisory

Risk appetite statements a board can apply to an actual decision, strategic risk registers that survive contact with the market, and reporting directors can read.

The problem with most risk registers

Energy sector risk registers tend to accumulate. They record what went wrong before, rated on a scale nobody trusts, and they rarely say what the business should stop doing. Meanwhile the risks that determine the outcome — a price collapse in the middle of the day, a connection that arrives three years late, a counterparty that renegotiates — sit outside the register entirely.

We work the other way round: start from the strategic exposures the business actually carries, then build the appetite statements and the register to match.

What we produce

  • Risk appetite statements written so a board can test a specific proposal against them
  • A strategic risk register built from a blank page, not inherited
  • Quantified market exposures where the model can quantify them
  • Board-level reporting that distinguishes what changed from what is merely still true
  • A facilitated session where directors reach a shared view rather than a circulated document

Approach

From blank page to board paper

01

Exposure mapping

What the business is exposed to through its fleet, its contracts and its customers — quantified where we can quantify it.

02

Blank-page workshop

The board names the risks it believes matter, facilitated so that the discussion is not anchored to last year's register.

03

Appetite and register

Appetite statements and a strategic register drafted from what the board said, in the board's language.

04

Reporting

A reporting format management can maintain and directors can read in the time they have.

Who we do this for

Generators, retailers and large energy users

Government-owned generators setting appetite ahead of a capital programme; retailers exposed to wholesale volatility; miners and industrial users whose electricity supply agreements carry the risk. The common thread is a board that has to price uncertainty rather than describe it.

Setting risk appetite this year?

We can facilitate the session, quantify the exposures, or both.