Risk Management


Report VaR, CFaR/GMaR, and MtM for physical assets, financial contracts, and hybrid portfolios.

cQuant.io offers a full suite of risk management tools to complement any organization’s energy portfolio. From value-at-risk (VaR) and mark-to-market (MtM) reporting, to cash flow at risk/gross margin at risk (CFaR/GMaR) analysis and reporting for combined portfolios of physical generation assets and financial contracts, cQuant’s models help energy companies identify risk and take the proper steps to mitigate it.

Some key capabilities of cQuant’s risk management solution include:

  • VaR, MtM, and CFaR/GMaR reporting at the monthly and annual levels for portfolios of physical and financial assets.
  • Efficient stress test scenario generation and asset-level or portfolio-level impact assessment.
  • Quantification of physical or financial hedge effectiveness and risk reduction value.

Today’s prices for electric power and the fuel needed to generate it are typically extremely uncertain, leading to significant market risk for any organization connected to the energy market. Robust simulations of future market prices form the backbone of any solid analytical risk management framework. cQuant’s price simulation models use correlated Monte Carlo simulations of market prices to accurately reflect seasonal, weekly, and hourly trends in both price and uncertainty. That is, the simulations incorporate uncertainty in a way that is meaningful for each simulated price location, while still maintaining risk neutrality with current market expectations.

The Monte Carlo simulation approach allows models to report the likelihood of each simulated future scenario at the monthly level. This allows portfolio managers to focus on when and where the most-likely down-side events will occur and to take steps to mitigate risk through hedging or other active portfolio adjustments. Combining price simulations with cQuant’s Plant Disptatch Optimization and Cash Flow at Risk models provides an integrated view of market risk for complex portfolios of physical operational assets and financial contracts.

From VaR and MtM reporting for portfolios of financial contracts to comprehensive CFaR/GMaR analysis, cQuant.io’s risk management solution gives you the tools and the insight you need to protect your organization from today’s volatile financial energy markets.


Portfolio Cash Flow Reporting/Scenario Analysis

Understand expected future cash flow and uncertainty related to market prices and physical operations.


Value-at-Risk (VaR) Reporting

Report value-at-risk (VaR), mark-to-market (MtM), and Greeks for a portfolio of financial contracts.

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