Time to invest in the digitization of trading and risk management
The KPMG Global Energy Institute is pleased to announce the release of Drilling Down: Time to invest in the digitization of trading and risk management. In this edition, we asked Jason Guyre about the digitization of trading and risk management.
During the most recent commodity price downturn, energy companies facing reduced prices had limited capital to invest in technology upgrades to support business and operational capabilities, process efficiency, or risk control frameworks within their trading and risk management operations. The downturn also highlighted that companies with more advanced trading and risk management capabilities were better equipped to handle the volatility in the market. During this same period of time, financial services companies with trading operations and capital to invest have made a number of innovations in this area.
Now that many energy companies have adjusted to the new normal and have experienced some recovery in commodity prices, many of the industry’s risk management professionals are considering how best to invest in the middle office. Many are finding that emerging technologies—including blockchain, digital labor, cognitive computing, and analytics—offer numerous opportunities to address existing disadvantages and create new business value.