Strategic Risk Management

We can help. Signing a flexible supply agreement is only the start of your energy procurement journey. Once you have concluded your supply agreement, you need to commence the process of developing a strategic risk management plan to purchase your energy requirements in defined increments (blocks) during the term of your agreement. This plan needs to answer several important questions – when to buy? how much to buy? and how far out to buy?

Also, and possibly equally important, the plan needs to set out a documented and auditable process so that should someone in the future ask - why did we make a particular block purchase at that price? There is a trail of documents setting forth your organization's procurement objectives, risk tolerance, purchasing trigger process, authorized decision-makers, and market analysis.

NUS's markets, trading, and risk (MTR) teams can work with your procurement team to identify your risk tolerance and energy procurement objectives and draft a detailed strategic risk management plan. Once your plan is approved, the NUS team will implement your plan by continuously monitoring the energy markets, regularly communicating with your team, implementing block purchases, and providing position reports.

By filling out the form below, we can quickly prepare and send you an expedited portfolio management proposal for review. We can also set up a video conference call to review the proposal and answer any question you, or our team, might have concerning our proposal.