An Energy Management Institute Training Program

• Howtomeasure,monitorandmanagemarketriskandcreditrisk.• Whichtypesofriskmanagementmodelsarebestsuitedtospecifictypesoftradingandhedgingportfolios.

• Howtomanagerisksthateludemeasurementviaquantitativemodels(suchasliquidityrisk,operationalrisk,systemicrisk,regulatory/legalriskandreputationrisk).

• Howtomeasureaportfolio’sVaRusingvariousmodels.• Theimportanceofaccountingforparadigmshiftsandpriceshocksinstresstestsofaportfolio.

• HowandwhymajorcorporationssuchasBaringsBankandEnronfailed.• Howtoavoidsuchfailureswithinyourowncorporationandhowtoidentifythewarningsignsofthesetypesoffinancialrisksamongyourcounterparties.

You will leave this course with a solid and immediately useful understanding of:

• HistoryoftheSecuritiesandExchangeCommissionandhowitledtotheSarbanes-OxleyAct.

• ImplicationsofDodd-FrankontradingofOTCenergyderivatives.

Best Practices & Financial RiskApril 9-10, 2014 -- Thomson Reuters -- New York, NY

Thiscritical2-daycoursewillgiveyouanintegratedframeworktounderstandvarioustypesoffinancialriskandhowtomeasure,monitorandmanagethem.Thecourseprovidesattendeeswithapracticalyetrigorousunderstandingofbusinessethicsandreputationrisk,complianceandregulatoryrisk(includingSarbanes-OxleyActof2002andFASB133complianceissues),legalrisk,systemicrisk,operationalrisk,marketrisk,liquidityriskandcreditrisk.Inaddition,thecoursecoverstoolsformanagingmarketrisk(includingValue-at-Riskandstresstesting),implementationofbroad-basedandspecificbestpracticesandtradingcontrols.FinallythecourseprovidesdetailedcasestudiesofbothfailuresintradingcontrolsaswellasaSOXcompliancecasestudy.

Thecourseisdesignedtohelpmanagement,traders,riskmanagersandback-officepersonnelintheenergyindustrygainathoroughunderstandingofwhatthesefinancialrisksareandhowtheycanbemanagedsuccessfully.

Bygainingathoroughunderstandingofthesevarioustypesoffinancialriskaswellasthetoolsusedtomonitorandmanagetheserisksclientscanidentifyandavoidthepitfallsthatledtospectaculardisastersbothwithinandbeyondtheenergyindustry.Consequentlyitisvitalforcorporateofficers,backofficepersonnel,tradersandriskmanagerstobeknowledgeableaboutthelatesttools,techniquesandtacticsforriskmanagementandmitigation.

3Easy Ways to Register

Venue Location

Registration Fees

Course Times8:30am-4pm,April98:30am-4pm,April10

What You Will Learn

Why You Should Attend

1stdelegate: $1,9952nddelegate: $1,7953rddelegate: $1,600

Feeincludesfullcourse,expertinstruction,coursematerials,continentalbreakfast&lunch.

IncludesimplicationsofDodd-FrankonthetradingofOTCenergyderivatives.Plusparticipateinareal-timeportfoliorisktradingsimulation!

Thomson Reuters 195BroadwayEastSkybox,5thfl.NewYork,NY10007Recommendedhotelsonregistrationform.

1CallPMAConferenceManagementat201.871.0474orsendemailto:register@pmaconference.com.

2 Complete&faxthisformto253.663.7224.

3Complete&mailtheformto:PMAConferenceManagement,POB2303,FallsChurch,VA22042.

An Energy Management Institute Training Program

Best Practices & Financial RiskApril 9-10, 2014 -- Thomson Reuters -- New York, NY

Who Should Attend

Thecourseisapplicabletoalllevelsoftheenergyinfrastructure,oil,naturalgas,electricity&coal.Individualsineveryfunctionalareaofresponsibilityinallenergyindustrieswhosedecisionshavesignificantfinancialimpactwillbenefitfromthisprogram.Managersfromareassuchastrading,riskmanagement,compliance,humanresources,ethics,credit,contracts,operations,marketing,sales,supply&distribution,purchasing,financial&accountingwillfindthecoursehighlybeneficial.Someofthemorespecificareasfollow:

• TradersofanyoftheEnergyproducts

• Wholesale/MarketingCompanies• Jobbers• Retailer• End-Users• CommercialFleetManagers• Governmentagencies–Federal-State-Municipal

• Transportationcompanies

• MajorOil&LargeIndependents:• Refiners• Marketers• Supply&Distributionpersonnel

• ExchangePersonnel• Terminalmanagers• RiskManagers• WholesaleandCommercialmanagers• RetailBranded&unbrandedmanagers• Traders

• LenderstotheEnergyIndustry• Futures&OTCBrokers–especiallybrokerscateringtotheabovecompanies

• Utilities&Powermarketers• NatGasMarketers• Accounting&financialpersonnel• BackOfficeadministratorsoftrading&hedgingoperations

• Cutting-edgeissuesincomplianceandregulatoryriskincludingFASB133andanin-depthstudyofSOX.• Whatlegalandsystemicriskareandhowtheseissuesaffectcompanieswithintheenergyindustry.• Differenttypesofmarketriskandhowhedgingofoutrightpriceriskresultsinbasisandoptionalityrisks.• The“Greeks.”• Allofthetoolsatyourdisposaltomanagemarketriskincludingtraditional,position-basedtoolssuchasstoplossplacementandvolumetriclimitsaswellasportfolio-basedtoolssuchasmark-to-market,Value-at-Risk,stresstestingandfixedfractionalmoneymanagement.

• ApplicationofstatisticaltheoriesandhowtheyrelatetocalculationofValue-at-Riskincludingassumptionsofanormaldistributionaswellashownon-normaldistributions(skewness,kurtosisandstableParetiandistribution)effectValue-at-Riskcalculations.IncludedaretoolssuchasExtremeValueTheoryandGARCHwhicharespecificallydesignedformeasuringthetailofastableParetiandistribution.

• ModelsforCalculatingValue-at-RiskincludingtheLinearmodel,theDelta-Gammamodel,theHistoricalSimulationmodelandtheMonteCarloSimulationmodel.AlsoincludedisadiscussionoftheprosandconsinherentinemploymentofeachofthefourmajortypesofVaRmodels.

• ApplicationoftheoriesoffinancialmathematicsandhowtheyrelatetocalculationofValue-at-RiskincludingthedifferencebetweenaVaRmeasure,VaRmodelandaVaRmetric.Alsocoveredareportfoliomapping,inferenceproceduresandtransformationprocedures.

• ModelingforPriceShocksandParadigmShifts.• Whatliquidityriskisandhowtointegrateitwithinadynamicmarketriskmanagementprogram.• Theimportanceofimplementationofbroad-basedandspecifictradingcontrolsinordertoreduceoperationalrisk.• Creditriskmanagementissuesincludingvariouscreditriskmodels(suchasCVaR,KMV,Z-Score,Econometric,ActuarialandRatingAgency)andmitigationtools(includingcreditderivatives).

• Financialriskcasestudies:CrayInc.,BaringsBankandEnron.

Thiscourseearns14CPEcredits.EMIawardscredithourstowardsCPEandCertifiedPurchasingManagerstatus(CPM).

CPE Credits

An Energy Management Institute Training Program

Course Syllabus: DAY ONE Overview of Financial Risks: Regulatory, Compliance, Legal, Systemic, Operational & Market Risks

Discussesthesixmajorcategoriesoffinancialriskthatareexperiencedbyallcorporationsthatareinvolvedintrading.Typesoffinancialriskexperiencedbyentitiesthatdonottradeaswellasadefinitionofbasictermssuchas“bestpractices”and“front”,“mid”and“back”officesarealsocovered.Thissectionalsoprovidesattendeeswithanoverviewofthehistoryofbusinessethicsaswellastwocontrastingschoolsofthoughtregardingbusinessethicsandreputationrisk,namelythe“utilitarian”modelandthe“corporatesocialresponsibility”model.

Best Practices & Financial RiskApril 9-10, 2014 -- Thomson Reuters -- New York, NY

ThissectioncoverstheDodd-FrankActincludingbroadgoalsoftheAct,theDodd-Frankregulatoryhierarchyforderivatives(alongwiththepotentialforfuture“regulatorycreep”aswellasregulatoryturfwars)andnewregulatoryterminology.ParticularemphasisisplacedonthekeypointsoftheActandhowthesepointsspecificallyrelatetothetradingofOTCenergyderivatives(includingTitleVIIaswellassections722,750,751and753).

InthissectionweexamineFAS133intermsof“fairvalue”and“cashflow”hedging,specificcriteriatodeterminethe“effectiveness”ofahedge,“hedgeinception”and“on-goinghedges”.Thenweanalyzetheprosandconsof“qualifyingforhedgeexemption”.Nextweprovidesattendeeswithanoverviewofhowvariouskindsoflegalriskscanadverselyaffectacorporationanditexamineshowthefailureofoneplayerwithin

Throughanin-depthstudyoftheoperationalandtradingcontrolsfailuresatBaringsBankweintegratethetheoriesofoperationalrisk(coveredintheprevioussection)intothereal-worldspecificsexperiencedEngland’soldestMerchantBank.Particularemphasisisplacedonconflictsofinterest,thebreakdowninseparationofdutiesandalackofadherencetobasicprinciplesoffinancialriskmanagement.

Session 2: Overview of the SEC & Sarbanes-Oxley Act of 2002

ThissectioncoversthehistoryoftheSECincludingtheback-groundleadingtoitsformationandthephilosophygoverningitsmethodofoperation(e.g.“disclosure”).InadditionweexaminetheSarbanes-OxleyActof2002includingthehistoryleadinguptothepassageofthisSEClegislation,whatthelegislationentailsincludingdetailedcoverageofinternalcontrolsandCOSOaswellasbestpracticesandCOBITandpenaltiesfornon-compliance.Finallyweexaminethecosts,long-termstrategyguidelinesandacallforreformincludinganexaminationofthecostofSOXcompliance,examinesimpedimentstoimplementationofalong-termSOXcompliancestrategyanddiscussesthecurrentmovementtoreformSOX.

AnOverview,VaR&Statistics:Thisoverviewtothetopicofmeasuringmarketriskexaminesthe“twoschools”ofmarketriskmanagement:the“traditionalist”schoolwhichemploystoolslikestoplossesandvolumetricexposurelimits,andthe“portfolioanalysis”schoolwhichusesmark-to-market,volatilitiesandcorrelationsofassetswithintheportfolio.Wethenlookathowstatisticalanalysisappliestothemeasure-mentofValue-at-Risk.Specificallyattendeeswillexaminevolatility,correlations,normaldistribution,lognormaldistribution,skewness,kurtosisandthestableParetiandistribution.

Session 1: Overview of Course, Business Ethics & Reputation Risk

Session 5: Case Study – Barings Bank

Thisreal-timetradingsimulationwillenableparticipantstoexaminemarketriskofahypotheticalportfolioandsoallowattendeestofamiliarizethemselveswithcorrelationrisk,standarddeviationsoflinearassets,aswellasrisksofvariousoptionsheldwithinaportfolio.

Portfolio Risk Trading Simulation

Session 3: Dodd-Frank Act of 2010

Session 4: FASB 133 Derivatives Accounting, Legal,Systemic & Operational Risks

Thissectionexaminesthebasicflavorsofmarketriskincludingoutrightpricerisk,basisriskandoptionalityrisk.Inaddition,itlooksathowtheuseofoptionsasaninstrumenttohedgeoutrightpriceriskinturncreatesnon-linearmarketrisksincludingdelta,gamma,theta,vegaandrho.

Session 6: Market Risk

Session 7: Measuring Market Risk

theindustrycanadverselyaffectothersparticipantswithinthatindustry.FinallyweexamineOperationalRiskbydividingthetopicintotwosegments,humanandnon-humancenteredoperationalrisks.Regardingbothsubsections,specificemphasisisplacedonhowtheserisksrelatetoatradingoperation.

Session 4 Continued

An Energy Management Institute Training Program

Course Syllabus: DAY TWO Best Practices and the Measuring, Monitoring & Mitigation of Market, Liquidity & Credit Risks

Best Practices & Financial RiskApril 9-10, 2014 -- Thomson Reuters -- New York, NY

InthissectionattendeeswilllookatthesixVaRmodelinputs(prices,volumes,holdingperiod,confidencelevel,volatilityandcorrelations)andtogetherthegroupwillwalkthroughthecalculationofaportfolio’sVaRusingthelinearmodel.ThenwewilllookattheprosandconsofusingotherVaRmodels(delta-gamma,historicalsimulationandMonteCarlosimulation).

Session 8: Measuring Market Risk: Fat-Tails & VaR

ThissectiondiscussesthedifferencesbetweenaVaRmeasure,VaRmodelandVaRmetric.ThesectionalsocoversthethreeprocedurescommontoVaRmeasures:portfolioremapping(accordingtokeyfactors),inferenceofhistoricaldata(basedonweightingfactorsandGARCH)andtransformationprocedures.WethenexaminestresstestingissuesforVaRaswellareviewofthetheoriesofmanagingandmodelingmarketriskincludingtraditional-istschoolmeasuresandportfolioanalysistheory.Tothesetheoriesofriskmanagementwethenaddothertoolssuchasfixedfractionalmoneymanagementtechniques.Finallythesectionincludesadiscussionofissuessuchaspriceshocksandparadigmshiftsandhowthesechangesinthecharacterofmarketvolatilitycanbemanaged.

Session 13: Case Study: Enron

ThiscasestudydocumentstheriseandfallofEnronwhileplacingparticularemphasisonthebreakdownofdisciplinedadherencetoGAAP,incentivebonusesbasedonabilitytoclosedealsasopposedtoprofitabilityandthebreakdowninindependenceofmidandbackofficeduetoill-advisedhumanresourceevaluationprocedures.Inaddition,thecasestudyexaminestheabilityofEnrontodismantletheindependenceofexternalauditorsandWallStreetbrokerageanalysts.

Session 9: Measuring Market Risk: Calculating VaR

ThisportionofthecourseexaminestheproblemswiththeassumptionofanormaldistributioninmodelingforVaRandhowtoolslikeExtremeValueTheorycanaddressthelimitationofnormaldistributiontailassumptions.Thissectionalsoexaminestheprosandconsofvariousmethodsoftailmeasurement.

Session 10: Financial Theory of Value-at-Risk & the RiskManagement Pyramid

Includedinthissegmentofthecourseisadefinitionofvarioustypesofliquidityriskandhowtoidentifyandmanagesuchrisks.InadditionweexamineCreditRiskbyprovidingattendeeswithanoverviewofcreditriskmanagementissuesincludingbestpracticeimplicationsofcreditriskissuesincludingtheestablishmentandadherencetocreditrisklimitsandtheestablishmentofacreditevaluationprocess.InadditionthesectionincludesproceduresforcreditriskquantificationbasedonvariouscreditriskmodelsincludingCVaR,Z-Score,KMV,Econometric,ActuarialandRatings-basedmethodologies.Finallyweexaminevariousriskmitigationtoolsforcreditriskincludingcollateral,bondinsurance,guarantees,lettersofcredit,nettingagreementsandcreditderivatives.

Session 11: Liquidity & Credit Risk

Session 12: Risk Management Procedures and TradingControls & Specific Best Practices Recommendations

Thissectionincludesspecificbestpracticesandtradingcontrolsrecommendationstopreventproblemsinopera-tionalrisk.Theserecommendationsincludeseparationofdutiesbetweenfront,midandbackofficepersonnelaswellasadherencetothestatedrisk-rewardtolerancesofthecorporation.Wethencoverspecificrecommendationsfortradingorganizationstoemployinordertoavoidbreak-downsintradingcontrols.Includedarespecifictradingroomsuggestionsthatareemployedbybrokeragefirms(suchastapingofallconversations,timestampingofallordersandimmediateentryofalltradeintothetradingcontrolssystem).

An Energy Management Institute Training Program

Best Practices & Financial RiskApril 9-10, 2014 -- Thomson Reuters -- New York, NY

EMI’s leading industry expertshaveanaverageofover30yearsofknowledgeandexperiencein:

Energy • Commodity trading • Risk management • Education • Consulting • Financial services

Plusmanyyearsofmanagingmarketing,internationaltrading,manufacturing,consulting,start-upoperationsandprojectfinanceoperationsofwell-knowncompanies;integratedmajoroilcompaniesaswellasinternationaltradingcompanies.

EMI’sindustryexpertshavealsoprovidedriskandvaluemanagementanalysis,advice,information,andservicestoavarietyofcompaniesintheelectricpowerindustry.Clientshaveincludedpowermarketers,integratedutilities,retailpowerproviders,hedgefunds,andpowerplants.Highlights of our instructors’ experienceinclude:•Developingasuiteofmodelsforavarietyofpowermarketsthatquantifyvalueandrisk•Managingsparkspreadportfoliosforhedgefundsinthepowermarkets•Operatinginfuturestradingpitsasamarketobserverinthepowermarkets•Developingworkingpapersforinvestigationsandperformingcomplianceauditsinthepowerindustry•HelpingTexacoinitiateitsfirstuseoffuturesexchangesasanintegralpartofhedging/tradingstrategy•ChiefOperatingOfficerofTriwellMarketingandrefining•DirectorofOPIS,OilPriceInformationService,amanagement-consultingandeducationalservicesgroupthatsolelyfocusedonthedownstreamenergyindustry•MemberofBoardofDirectorsofLongviewRefinery•MemberoftheNewYorkMercantileExchangePetroleumAdvisoryBoard•ExpertwitnessforahearingbeforethesubcommitteeonsurfacetransportationfortheCommerce,Science,andTransportationCommitteeoftheUSSenate•SuppliedexperttestimonytoaUSSenatesub-committeehearingondieselpetroleumproductpricing•SuppliedtestimonytotheFederalHighwayAdministrationregardingfueltaxevasion•ExpertwitnessinaMTBElitigationagainstthemajoroilcompanies•PublishersofTheDailyHedger,BTU’sDailyGasWireandBTU’sDailyPowerReport,whichadvisethousandsofpetroleumprofessionalsdaily.

Ourinstructorsarefrequentexpertspeakersfornumerouspetroleumindustryeventsandtradeassociationsincluding:•DOEDESCWorldEnergyConference•OPISFleetFueling•NYMEX•FuelManagementUniversity•NATSO•ATA•AAA•DairyDistribution•eyeforEnergyeCommerce•OPISSupplySummit•CIOMA•AmericanSocietyofMechanicalEngineers•AmericanSocietyofLubricatingEngineers•AmbrustAviation•NACHA.

OvertheyearsEMIhasdevelopedaseriesofintensivecoursescoveringallaspectsofEnergyfromproductionallthewaytomanagingtheimpactpriceandvolatilityonthemarginofend-users,resellers,traders,marketers,shippers,retailersandrefiners.Ourinstructorshavehadtheprivilegetoinstructthousandsofprofessionalsrepresentingallaspectsoftheenergyindustry,includingeverymajoroilcompany(i.e.ExxonMobil,BP,Shell,Equilon,Motiva)majorpowerutilities(i.e.Sempra,EdisonMission,Berkley,TorontoHydro,Dominion,Conectiv)smallmarketers(i.e.Sprague,Getty,SouthernCounties,WesternPetroleum)truckingfleetsfrom50to10,000(i.e.UPS,U.S.PostalService,Yellow,Pepsi,Werner),gasoline-poweredfleetshyper-markets(i.e.ThePantry,Wawa,BJsWholesale)andmanyfortune500energyconsumers.

EMIexpertsarefrequenteditorialcontributorstopetroleummagazines&aretrustedbytoday’sleadingnewssources.

Ourexpertshavebeenfeaturedin:

FuturesMagazine• TheWallStreetJournal•USAToday• TheNewYorkTimes• TheWashingtonPost•JournalofCommerce•CNN•NBC•CBS•ABC• Bloomberg•Reuters

Learn From the Experts that Experts Trust

An Energy Management Institute Training Program

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3Easy Ways to Register$1,995forfullprogram

Thisfeeincludesexpertinstruction,coursematerialsandlunch.

Best Practices & Financial RiskApril 9-10, 2014 -- Thomson Reuters -- New York, NY

Discount for Additional Attendees

2nddelegate:$1,7953rddelegate:$1,600

Refund/Cancellation Policy

Attendeesmayrescheduleforadifferentdateorcoursewithnopenalty.AttendeesmaysubstituteacolleagueinplaceofthemselvesaslongaspriornoticeisgiventoEMI.Coursefeesare100%refundableupto14dayspriortocoursedate,80%refundableupto5dayspriortocoursedateand50%refundableupto2dayspriortocoursedate.Cancellationsarenon-refundablethereafter.

Venue Location

Recommended Hotels

Thomson Reuters 195BroadwayEastSkybox,5thfl.NewYork,NY10007

Millenium Hotel55ChurchStreetNewYork,NY10007212.693.2001http://www.hilton.com

Gild Hall Hotel – Wall Street (0.3milesSE)15GoldStreetNewYork,NY10006212.232.770http://www.thompsonhotels.com/hotels/nyc

New York Marriott Downtown(0.4milesSW)85WestStreetNewYork,NY10038212.385.4900http://www.marriott.com/NewYorkCity

1CallPMAConferenceManagementat201.871.0474orsendemailto:register@pmaconference.com.

2 Complete&faxthisformto253.663.7224.

3Complete&mailtheformto:PMAConferenceManagement,POB2303,FallsChurch,VA22042.