Better Risk Management Helps Energy Companies Avoid Trouble, Improve Performance, According to The Thinking Companies.Business/Energy Editors FALMOUTH, Maine--(BUSINESS WIRE)--Dec. 11, 2002 The US power market is in chaos, with many companies enmeshed en·mesh also im·mesh tr.v. en·meshed, en·mesh·ing, en·mesh·es To entangle, involve, or catch in or as if in a mesh. See Synonyms at catch. in legal wrangles and bankruptcy proceedings bankruptcy proceedings n. the bankruptcy procedure is: a) filing a petition (voluntary or involuntary) to declare a debtor person or business bankrupt, or, under Chapter 11 or 13, to allow reorganization or refinancing under a plan to meet the debts of the party . Have any survived the past year of turmoil relatively unscathed? Yes, says energy expert Shirley S Shir·ley , William 1694-1771. British colonial administrator who was governor of Massachusetts (1741-1749 and 1753-1756) and commanded British forces in the French and Indian War. . Savage. "What's their secret? It's called risk management." Risk management (RM) helps companies identify and avoid potential risks. RM has helped several power market companies survive the credit and market problems caused by the Enron debacle. "Strong RM programs are separating those companies who can tap into the capital markets from those who can't," says Savage, president of The Thinking Companies Inc. "Why? Because the financial community expects power market companies to have strong corporate governance Corporate Governance The relationship between all the stakeholders in a company. This includes the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy, and rule of law. programs in place and RM practices achieve that goal." There are efforts underway to tighten RM standards: Recent initiatives by the Committee of Chief Risk Officers and National Energy Marketers Association are a step in the right direction. To bring RM expertise to a broader audience, a book published this month by Shirley S. Savage and Peter R. Savage, "Power Market Risk: How To Survive (& Prosper) In Crazy Times," shows how to set up, run or rejuvenate re·ju·ve·nate tr.v. re·ju·ve·nat·ed, re·ju·ve·nat·ing, re·ju·ve·nates 1. To restore to youthful vigor or appearance; make young again. 2. a risk management program. The authors interviewed top risk managers in the power markets to discover their techniques and how to put them into action. They recommend that companies refine their competitive intelligence methods and tighten credit risk policies. Although it is commonly accepted wisdom that no one could have guessed the Californian power market would be blatantly bla·tant adj. 1. Unpleasantly loud and noisy: "There are those who find the trombones blatant and the triangle silly, but both add effective color" Musical Heritage Review. manipulated, or Enron would go bust leaving trading partners holding the bag, that's not true. The portents were there, for those willing to recognize them. "The California debacle teaches us a lot about trading tactics, indices, market prices and rigged markets Rigged market Manipulation of prices in a market to attract buyers and sellers. ," says Shirley Savage. "Power Market Risk: How To Survive (& Prosper) In Crazy Times" is available from Thinking Energy, an imprint of The Thinking Companies, Inc., for $199.00. ISBN ISBN abbr. International Standard Book Number ISBN International Standard Book Number ISBN n abbr (= International Standard Book Number) → ISBN m No.: 0-9727037-0-5. For more information, contact our marketing department. Phone: 207-829-3223. Email: riskbook@thinkingenergy.com. Website: http://www.thinkingenergy.com ABOUT THE THINKING COMPANIES, INC. The company provides clients with usable knowledge about the intellectual and technological challenges of the 21st century. It specializes in such subjects as alternative energy and monitoring cutting edge developments in the fields of nanotechnology and electronics. Editorial queries/interview requests: call Shirley Savage at 207-829-2020 |
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