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Fundamentals of Value-at-Risk (VaR) and Energy Trading Books--A Non-Technical Guide for Executives, Traders, Auditors, Attorneys & Support Staff


A One-Day Classroom Seminar (CPE Approved)

Register Soon to get Early Bird Pricing.

"Surprises" in trading results and the consequential failures of the trading firms have become commonplace.

The first part of this introductory course discusses the role of the "Trading Books", how companies use or don't use such books and how losses stay hidden from view. We will also cover risk management best practice for making trading books more reliable and the traps and caveats in using the results.

The second part of the course deals with Value-at-Risk or VaR. Sophisticated tools such as VaR are meant to prevent surprises, but only if used and interpreted correctly.

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What You Will Learn
  • "Fundamentals of Energy Trading Books" In this lesson, you will learn: 1) What the different types of accounting books are, and how they relate to energy trading books; 2) Why energy trading books are necessary, and how they are used; 3) How to create and maintain the different components of energy trading books, and what the different book structures are; 4) What the difference is between mark-to-market, accrual and profit & loss accounting; 5) What the difference is between recognized and forward book income; 6) How trading books connect the actions of traders with the reporting, accounting and control functions of a company; 7) What the structure and function is of position and mark-to-market reports; 8) How to handle reconciliation issues and inter-book transactions, and why these issues are important; 9) The role of blotters, trade recaps and value-at-risk (VaR); and 10) How asset related transactions such as storage and transportation deals are addressed by energy trading books.
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What You Will Also Learn
  • "Fundamentals of Value-at-Risk" In this lesson, you will learn: 1) What value-at-risk, or VaR, is; 2) Why value-at-risk is the risk measurement method of choice at most energy trading firms, and how value-at-risk is used; 3) How trading risks are separated into VaR risk buckets, and how to prepare, calculate and use a cross-correlation table; 4) How to calculate the appropriate volatilities needed for VaR computation; 5) The methodologies behind the "variance-covariance", "historical simulation" and "Monte Carlo" VaR calculation methods, and what the advantages and disadvantages are for each of these three methods; 6) The impact that volatility, correlation and shape of curve assumptions have on VaR calculation; 7) How to calculate and use both correlated and uncorrelated VaR; and 8) The pitfalls and assumptions to be aware of when using value-at-risk.
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Hotel and Seminar Information
This seminar will be held at the hotel listed below or can be conducted on-site at your facilities. The seminar will start promptly at 9:00 AM and will finish at 3:30 PM. The program includes continental breakfast, lunch, and coffee/cookie breaks. Attendees also receive a professionally produced seminar manual that can serve as a valuable office reference. Dress is casual for all seminars.
COVID 19 Information: Please click here for the PGS Covid-19 policy. You can confirm each hotel's specific COVID 19 policy using the link(s) provided below.
Registration Fee and Discounts
The price for this comprehensive two-day seminar is $895 (USD).
Register online or Call (843) 212-4038.
  • Additional attendees and government employees receive a 10% discount.
  • Register 4 or more attendees and receive 20% Off. Special pricing is available for groups of 5 or more.
    If you want attendees to pay with separate credit cards or have other questions, please call (843) 212-4038 for assistance.
Payments and Cancellations
Payment is due prior to the start of the seminar by Visa, Master Card, American Express, or corporate check. Seminar fees will be charged to your credit card at the time of registration unless other arrangements have been made. Please make checks payable to "PGS Energy Training" 26 Teal Lane • Hilton Head Island, SC 29926. Cancellations will result in a credit that is good for 2 years which can be transferred to a colleague. Substitutions may be made at any time. For more information on PGS policies regarding administrative matters and complaint resolution, please contact our offices at (843) 212-4038.
CPE Credits in Specialized Knowledge

This live group seminar is eligible for 6.0 CPE credits. Be aware that state boards of accountancy have final authority on the acceptance of individual courses for CPE credit. As of January 1, 2002, sponsored learning activities are measured by program length, with one 50-minute period equal to one CPE credit. One-half CPE credit increments (equal to 25 minutes) are permitted after the first credit has been earned in a given learning activity. You may want to verify that the state board from which your participants will be receiving credit accept one-half credits.

PGS Energy Training is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org. CPAs interested in attending any seminars should contact our offices for details on CPE credits granted and any prerequisite requirements.
PGS Energy Training is registered with GARP as an Approved Provider of Continuing Professional Development (CPD) credits. If you are a Certified FRM or ERP, please record this activity in your Credit Tracker at http://www.garp.org/cpd. Please inform PGS Energy Training that you are a GARP CPE participant upon seminar registration.

The Global Association of Risk Professionals (GARP) is a not-for-profit membership association dedicated to preparing professionals and organizations for making better-informed risk decisions. GARP's membership represents more than 150,000 risk management practitioners and researchers at academic institutions, banks, corporations, government agencies, and investment management firms in 195 countries and territories. GARP administers the Financial Risk Manager (FRM) and Energy Risk Professional (ERP) Exams – certifications recognized by risk professionals worldwide. Visit www.garp.org/cpd.
Who Should Attend

This is a basic course for the novice and those relatively new to Value-at-Risk (VaR) and Risk Management Controls. No prior experience or math knowledge is assumed.

Among those who will benefit from this seminar include energy and electric power executives; attorneys; government regulators; traders & trading support staff; marketing, sales, purchasing & risk management personnel; accountants & auditors; plant operators; engineers; and corporate planners. Types of companies that typically attend this program include electric utilities; power marketers; banks & financial houses; industrial companies; accounting, consulting & law firms; municipal utilities; government regulators and electric generators.

Prerequisites and Advance Preparation

Both sessions of this course cover the basic fundamentals and require no advanced math or other prerequisites.

Why Choose PGS?

PGS seminars are known for their clear explanations and in-depth content. Register for a PGS class today, and join the over 10,000 energy professionals who have already attended one of PGS's proven programs.

Program Level & Delivery Method
Intermediate level. CPE delivery method is "Group-Live."