Energy Risk Management Strategies

Energy risk management involves identifying and reducing potential financial losses from fluctuations in energy prices, supply disruptions, or demand changes. Strategies include using financial tools such as hedging with contracts, options, or swaps to lock in prices or protect against price swings. Companies may also diversify energy sources or create contingency plans to handle supply disruptions. The goal is to stabilize costs and ensure reliable energy availability, helping organizations avoid unpredictable expenses and maintain steady operations despite market volatility.