A Model for Measuring Returns on Risk Management Investments
Released on February 21, 2014, this whitepaper explores the Return on Investment (RoI) for Risk Management, specifically tailored for energy and commodity companies. It presents a novel model to measure RoI on risk management investments, with a focus on introducing a new ratio, ERR (Excess Risk Ratio), which utilizes Expected Shortfall (ES) and Value-at-Risk (VaR) to evaluate returns.
The paper also provides insights into why measuring returns on risk management is a challenge and draws comparisons to similar studies in sectors like banking and financial institutions. Through extensive analysis, it reveals that the RoI on risk management for energy and commodity companies falls within the range of 3.2% to 14% of average portfolio value.
Key insights and findings from this whitepaper include:
This paper serves as one of the first comprehensive studies on RoI in risk management, specifically tailored to the energy and commodity industries.
This publication is free for industry professionals. Write to us with your details and we'll send it to you.
Request NowBrowse our full library of whitepapers and e-books on Commodity Risk Management, AI, and quantitative finance.
Risk Edge is a leading Solution provider for Machine Learning & Risk Analytics, used by medium and large Energy & Commodity Trading Players.
201, NSIC Business Park, ECIL, Hyderabad, Telangana, India PIN – 500062
