Energy Risk Management

Energy Risk Management involves identifying, analyzing, and mitigating the risks associated with energy production, consumption, and trading. These risks can arise from fluctuating prices, supply disruptions, regulatory changes, and environmental factors. Companies and organizations engage in risk management to protect their financial interests, ensure stable energy supply, and comply with regulations. This process often includes strategies like hedging—using financial instruments to offset potential losses—and diversifying energy sources to reduce dependence on any single one. Ultimately, effective Energy Risk Management aims to enhance energy security and economic stability.