BY THOMAS MULHOLLAND
How do you know if your energy consultant is really looking out for your best interests instead of simply selling what they have to offer? The only way to create a truly good solution is through careful evaluation of a customer’s needs, wants and long-term goals. Without this type of approach, any proposed solutions validate H.L. Mencken’s maxim that for every problem there is a solution that is simple, neat, and wrong.
As energy market volatility continues to unfold, energy costs depicted by supply and demand curves are not constrained to follow the curve. Due to many factors, including increased use of energy fuels worldwide, the price curve will shift radically to balance supply and demand.
How does your risk management approach, and the model of your expected results, perform when market dynamics shift the curve? Read here for our comments about the impossibility of forecasting risk using VaR, and the desirability of testing fragility instead.
Customized solutions succeed by putting the customer first. We can help you realize all of the value you expect by aligning our goals with yours, and those of your business’ operation.
How do you know when your exposure to energy risk is properly managed? Does your energy consultant ask tough questions? Do they propose solutions for risk before getting to know you and your goals and objectives? Are the best energy risk managers mind readers and oracles? True energy consulting is working along side customers to evaluate risk and offer customize solutions to manage risk. These customized solutions mitigate risk at the tolerance level acceptable to the customer.