"Risks" are the potentialities that stand between the ambitions and goals of an individual or organization.

Risks can help you or your organization to achieve your goals.Generally risks are taken to achieve some advantage.

While there is Risk attached to every current action or situation, Risk is also an inevitable associate of change. Proposed actions will include potential benefits as well as potential costs.
Risk determined by evaluating the probability and the extent of the consequences of the loss.

It is necessary to understand "what" and "how" something might happen but also:

• the likelihood of something happening (probability)
• the effects if it did (consequences)

So the degree or level of risk can be measured by the below formula:

Risk = Probability x Consequence

The Risk management process incorporates the following functions:

1. Identification of all potential risk exposures
2. Examination of possible solutions/remedies
3. Selection of the most appropriate solution/remedy
4. Implementation of the selected solution/remedy
5. Monitoring of the solution to ensure effectiveness

The scope of the activities covers occupational health, safety, and the environment; injuries property legal liability, travel, motor vehicle and others.

All activities are linked in the one Risk Management Unit to provide an integrated approach to the prevention and management of injury and damage to property and the environment, and protection for its legal liabilities.

Energy Markets Risk Management divided into 3 major groups:
1-Crude oil 2-Natural Gas 3-Electricity Power

Analysis of the Crude Oil Industry

• Structure of the industry
• Components, from upstream to downstream activities
• Supply and demand factors that effect price

Analysis of the Natural Gas Industry

• Deregulation & structure of the industry
• Supply and demand factors that effect price

Introduction to Energy Derivatives

• Forward and option-based derivatives
• Over-the-counter and exchange-traded contracts
• Introduction to SWAPs

Forward Pricing in Energy Markets

• The basic cost of carry model
• Normal and inverted markets
• Analysis of energy forward pricing

Hedging with Exchange-Traded Derivatives

• Using futures and options contracts

Hedging with Over-the-Counter Derivatives

• Forwards, options and swaps

Overview of the Electricity Industry in Canada

• Basics of the industry
• How electricity is produced and distributed
• Pricing and the trading in a regulated market

Electricity Market Restructuring

• Electricity market restructuring
• Pricing and trading in a deregulated environment

Risk Management in Electricity Markets

• Risks in a deregulated market
• Mitigating risks using derivative instruments