Energy Price Risk Management Planning

Risk Management Policies and Procedures

Kase provides comprehensive, precise, and proven price risk management plans, policies and procedures that evolve from a unique statistical approach. Kase’s energy risk management plans are based upon sound thorough analysis, rigorous detail, and practical recommendations geared toward effective implementation.

Kase’s tactically complete risk management plans, policies, and procedures may include:

  • Development of a formal goal statement
  • Controls, exposure analysis and risk limits
  • Decision models and execution strategies
  • Deal capture and confirmation procedures
  • Organizational reporting flow
  • Customized stress testing
  • Basis-hedging analysis
  • Staffing and infrastructure requirements
  • Credit and contract considerations
  • Training for all involved in the process

Risk Management Analysis and Strategy

Kase uses a step-by-step process to assist in the development of a custom hedge strategy. Kase guides the development of a rule-based action plan which includes goals and risk appetite. This in turn drives when to hedge, how much to hedge, the pace at which to hedge, what instruments to use, when and how to hedge basis, and more.

Kase’s comprehensive Energy Risk Management Strategies may include:

  • Goal and strategy matching
  • Balancing risks and rewards
  • Determination of risk appetite
  • Setting hedge triggers
  • Volumes to be included in the hedge program
  • What financial instruments to use and when
  • Scale-in strategies
  • Hedge removal and restricting strategies
  • VAR and exposure analysis
  • Basis, regression and diversification analysis

Review of Existing Policies and Procedures

Kase reviews existing policies and procedures for conformation with standard industry practice.


Pricing depends on the scope of the project. To request a proposal please submit an information request form or contact us at (505) 237-1600.

Information Request