Master the K

nowledge to

Manage Energy R

isk The Value of ER

P Certification

Global A

ssociation of Risk Professionals

January 2014

2 Introductions and Agenda

Chris D

onohue, PhD

Managing D

irector, Research

and Educational Programs

GAR

P

Ben Baglin, ERP

Head of M

arket Risk

EDF Trading N

A

Shaun Connell, ER

P H

ead Trader, Eastern Energy TransAlta C

orporation

Michael Sell

SVP, ERP Program

Manager

GAR

P

Need photo

Andrew Tudor, ERP

Energy Resource Planning

NM

PP Energy

•GAR

P and its role in Risk M

anagement

•Energy R

isk Managem

ent and the ER

P Certification

•Perspectives on the role of the E

RP in individual careers

•Everything you w

anted to know about the E

RP

…but w

ere afraid to ask •Q

uestions & A

nswers

3 GA

RP’s R

isk Managem

ent Certification Program

s

•E

nergy Risk P

rofessional (ER

P®

) program

•Launched in 2009 to address the grow

ing importance of energy

•P

rogram objective —

assess an individual’s ability to measure and m

anage physical and financial risk in the energy industry

•

Financial Risk M

anager (FRM

®) program

•

Leading global professional designation program for risk m

anagement

•A

dministered by G

AR

P since 1997 •

Program

objective — assess an individual’s ability to m

easure and manage

risk in a real-world environm

ent

4 Fundamental Forces are D

riving Dem

and for Energy R

isk Managers

•

Energy com

panies are increasingly globalized and interconnected

•Technological innovation is driving grow

th in reserve development

•

Relationship betw

een physical and financial markets is everm

ore complex

•

Transactions are happening faster and market data sets are getting larger

•

Regulatory initiatives and requirem

ents are increasing

•G

rowing aw

areness and implem

entation of ER

M initiatives

5 The ERP

® Certification Prepares You for a

Career in Energy R

isk

•A unique professional designation that is gaining industry recognition

•A practitioner driven exam

curriculum guided by an oversight com

mittee com

prised of C

RO

s, comm

odity traders, risk managers and consultants from

energy sector

•The ERP Exam

is designed to assess an individual’s ability to measure and m

anage physical and financial risk in the energy industry.

•C

ontinuous learning opportunities through GA

RP

’s CP

E P

rogram

•P

ositive signaling to colleagues and employers that w

ill differentiate you

•A

ccess to a global network of like m

inded energy market and risk professionals

6

Validity and Reliability

7 Practitioners Inform Exam

Curriculum

and Developm

ent

•The E

RP is overseen by an E

nergy Oversight C

omm

ittee (EO

C)

•EO

C is com

prised of high-level practitioners with expertise across a range of risk

managem

ent topics that impact the global energy m

arkets.

•R

egular job task analyses and curriculum surveys are perform

ed to identify current industry dem

ands and specific exam topics.

•The ER

P curriculum is review

ed and revised annually in conjunction with the E

OC

•The E

RP curriculum

is described in the 2014 Study G

uide and AIM

s documents

•The AIM

s summ

arize the knowledge points contained in each required reading

•ER

P item w

riters and other Subject M

atter Experts (S

ME

s) rely on the AIM

s to develop exam

ination items (questions)

8 2014 Energy Oversight C

omm

ittee

Ken A

bbott M

organ Stanley & C

ompany

Richard A

postolik G

ARP

Dr. Law

rence Austen

Trafigura G

ordon E. G

oodman*

Alliance Risk G

roup Jeff Jew

ell D

TE Energy G

lenn Labhart (EO

C C

hairman)

Labhart Risk Advisors

Alessandro M

auro Litasco SA

Mark D

. May

Philips 66 S

hawnie M

cBride

Direct Energy

Ken R

obinson C

alpine M

ichael Sell

GARP

Jonathan C. S

tein H

ess Corporation

Dr. C

hris Strickland

Lacima G

roup D

r. Glen S

windle

Scoville Risk Partners

John Wengler

Hess C

orporation

* Retired O

ccidental Petroleum

9 The ERP Exam

s Are D

esigned to Be Fair but R

igorous

•P

sychometric testing is com

pleted on each exam

•P

ositive results indicate the ER

P reliably measures com

petence in energy risk skills

Historical Pass Rates N

ov 2009

May

2010 N

ov 2010

May

2011 N

ov 2011

May

2012 N

ov 2012

May

2013 N

ov 2013

61%

62%

49%

54%

51%

50%

45%

45%

47%

10

Market A

cceptance of the ER

P

11

* November 2009 only

Candidate R

egistrations Are G

rowing

12 Awareness is G

lobal

USA 36%

Canada 8%

U

K 11%

Singapore 6%

India 7%

Switzerland 7%

G

ermany 5%

Countries w

ith the Highest P

ercentage of ER

Ps

13 ERP H

ighlights

•Over 700 C

ertified ER

Ps globally

•More than 60 organizations w

ith two or m

ore ER

Ps

•ER

Ps com

e from m

ore than 50 countries

•Organizations w

ith the most ER

Ps

14

Insights from E

RPs

15 Ben B

aglin, ERP, H

ead of Market R

isk, EDF Trading N

orth America

Ben has 16 years of experience in trading and risk m

anagement in

the global oil market, and the European and U

S Gas and Pow

er m

arkets respectively. He has held trading, portfolio m

anagement and

risk manager roles at Shell Trading, G

raham C

apital Managem

ent, M

errill Lynch and EDF Trading in the U

S and Europe.

• Describe the types of activities you are typically involved w

ith in your role at ED

F Trading.

• What are som

e of the most im

portant trends in energy markets and the role of risk m

anagement?

• What differentiates energy m

arket risk from traditional financial m

arket risk?

• What do you consider to be the underlying value in becom

ing a Certified E

RP

?

Market R

isk Managem

ent: Ben B

aglin

16 Power Trading: Shaun C

onnell

Shaun Connell, ER

P, Head Trader of Eastern Energy, TransAlta

Shaun has more than 10-years of pow

er trading experience at TransAlta. As H

ead Trader of Eastern Energy, he is responsible for achieving gross m

argin targets for ―Eastern Trading Operations‖ through

asset optimization, origination, and proprietary trading in physical and

financial energy markets. Shaun has recently taken the business lead on

development and im

plementation of an Energy Trading R

isk M

anagement (E

TRM

) platform that w

ill replace current business processes and legacy system

s.

• W

hat knowledge and skills have been m

ost instrumental in your career success?

• How

did you hear about the ER

P?

• A number of your colleagues at TransA

lta have taken the ER

P – what feedback have you received?

• Describe the benefits you envision from

the integration of the ER

P into TransAlta’s risk culture?

• What advice w

ould you give ER

P candidates who are interested in pursuing a career in energy trading?

17 Quantitative M

odeling and ERM

: Andrew

Tudor

Andrew Tudor, ER

P, Energy Resource Planning, N

MPP Energy

Andrew

recently joined the Municipal Energy Agency of N

ebraska (M

EAN

) as energy resource planner. Prior to joining M

EAN, Andrew

held a variety of risk roles at the Tennessee Valley Authority (TVA) w

here he was engaged in enterprise risk, operational risk, quantitative

risk modeling, com

modity forecasting, and long-term

enterprise planning. B

efore transitioning to the energy markets, Andrew

was a

statistician at the United States C

ensus Bureau.

• What know

ledge and skills did you find the most useful in your transition to energy risk?

• Describe the risk m

anagement tools and m

odeling projects you have helped implem

ent.

• What have you found m

ost appealing about working in the energy m

arkets?

• How

has the ER

P Certification added value to you personally and in your career progression?

• What advice w

ould you give ER

P candidates considering a transition to energy risk managem

ent?

18

2014 ER

P Program O

ffering

19 The Path to Becom

ing a Certified ER

P

Certified

Energy Risk

Professional (ER

P®)

Mandatory

Continuing

Education Pass ER

P Exam

Dem

onstrate Two

Years Relevant W

ork Experience

•P

ass the ER

P Exam

•

140 question multiple-choice exam

•

Two 4 hour sessions w

ith a break for lunch

•Fulfill required w

ork experience •

Can be com

pleted prior to or after sitting for the exam

•C

andidates have 5 years to fulfill requirement after passing exam

•P

articipate in Continuing P

rofessional Education (C

PE

) •

40 credit hours earned over 2 years •

GA

RP provides m

onthly listing of CP

E opportunities

20 •Physical C

omm

odities •

Oil, G

as, and Coal m

arkets (25%)

•E

lectricity Markets and R

enewable G

eneration (25%)

•Financial Markets and R

isk Managem

ent •

Financially Traded Energy P

roducts and Structured Transactions (15%

) •

Energy C

omm

odity Price Form

ation and Market R

isk (15%)

•C

redit, Counterparty, and C

ountry Risk A

ssessment (15%

) •

Enterprise R

isk Managem

ent and Business E

thics (5%)

Exam C

urriculum C

overs the Entire Energy Value Chain

21 •ww

w.garp.org/erp/study-center/study-m

aterials.aspx •

Study G

uide (Free) •

AIM

S (Free)

•E

xam P

reparation Handbook (Free)

•E

RP C

ore Readings C

ourse Pack (U

S$295 + shipping)

•ww

w.garp.org/erp/study-center/free-practice-exam

s.aspx •

Practice E

xams (Free)

•ww

w.garp.org/erp/study-center/exam

-preparation-providers.aspx •

Register w

ith a GA

RP approved E

RP E

xam P

reparation Provider

Dow

nload Resources for Exam

Preparation

22 •E

arning the ER

P is just one step in building your energy risk career; maintaining

your knowledge and skills is equally im

portant. •

Certified E

RP

s are required to earn 40 hours of CP

E credit every 2 years

•

GA

RP helps E

RP

s stay abreast of current industry trends and risk managem

ent know

ledge through our Continuing P

rofessional Education (C

PE

) Program

.

•The C

PE

program is global, flexible and delivers an extensive range of highly

relevant programs from

webcasts and training program

s to live conferences and sem

inars.

•G

AR

P has partnered with a broad range of global providers of education and

training to bring you the most up-to-date inform

ation and share best practices in risk m

anagement

•

In addition to structured activities, GAR

P shares an extensive list of articles, journals, w

hitepapers and other published materials on a m

onthly basis

Mandatory C

ontinuing Education for ERPs

23 ERP Program

Registration Tim

eline and Fees

ERP Program

Enrollment and Exam

Registration Fee

May 17, 2014

Nov 15, 2014

Enrollm

ent Fee – US

$300 Valid for 4 years

Early R

egistration – US

$450 D

ec 1, 2013 - Jan 31, 2014 Jun 1, 2014 - July 31, 2014

Standard R

egistration – US

$575 Feb 1, 2014 - Feb 28, 2014

Aug 1, 2014 - A

ug 31, 2014

Late Registration – U

S$750

Mar 1, 2014 - A

pr 15, 2014 S

ep 1, 2014 - Oct 15, 2014

•E

nrollment fee includes 1-year com

plimentary G

AR

P Individual Mem

bership

•Register for the M

ay 2014 exam at w

ww

.garp.org/erp/register/register.aspx

24 2014 ERP Exam

Sites

Africa Jordan, Am

man

USA, C

olorado, Denver

Ireland, Dublin

Ghana, Accra

Korea, Seoul U

SA, D.C

., Washington

Italy, Milan

Kenya, Nairobi

Kuwait, Safat

USA, Florida, Tam

pa Luxem

bourg N

igeria, Lagos Lebanon, Beirut

USA, G

eorgia, Atlanta Poland, W

arsaw

South Africa, Cape Tow

n M

alaysia, Kuala Lumpur

USA, Illinois, C

hicago R

ussian Federation, Moscow

South Africa, Vanderbijlpark

Om

an, Muscat

USA, Louisiana, N

ew O

rleans Spain, Barcelona

Pakistan, Karachi U

SA, Massachusetts, W

altham

Spain, Madrid

Asia Philippines, M

anila U

SA, Michigan, Ann Arbor

Sweden, Stockholm

Bahrain, M

anama

Saudi Arabia, Riyadh

USA, N

ew York, N

ew York

Switzerland, G

eneva C

hina, Beijing Singapore

USA, N

J, New

Brunswick

Switzerland, Zurich

China, C

hengdu Taiw

an, Taipei U

SA, North C

arolina, Charlotte

The Netherlands, Am

sterdam

China, G

uangzhou Thailand, Bangkok

USA, O

hio, Colum

bus Turkey, Istanbul

China, H

ong Kong U

nited Arab Emirates, D

ubai U

SA, PA, Philadelphia U

kraine, Kiev C

hina, Nanjing

USA, Texas, D

allas U

K, England, London C

hina, Shanghai Am

ericas U

SA, Texas, Houston

UK, Scotland, Edinburgh

China, W

uhan Berm

uda, Paget U

SA, Washington, Seattle

India, Bangalore Brazil, Sao Paulo

Oceania

India, Chennai

Canada, Alberta, C

algary Europe

Australia, Melbourne

India, Hyderabad

Canada, BC

, Surrey Austria, Vienna

Australia, Sydney India, Kolkata

Canada, O

ntario, Toronto Belgium

, Brussels N

ew Zealand, Auckland

India, Mum

bai C

anada, Quebec, M

ontreal Bulgaria, Sofia

India, New

Delhi

Jamaica, Kingston

Czech R

epublic, Prague Indonesia, Jakarta

Mexico, M

exico City

France, Paris Israel, Tel Aviv (Sunday)

USA, C

alifornia, Los Angeles G

ermany, Frankfurt

Japan, Tokyo U

SA, California, San Francisco

Germ

any, Munich

25 Questions &

Answ

ers

•

ERP Facebook chat January 29, 2014, 11AM

EST •

Opportunity for additional Q

&A before early registration ends

•

Learn more about the E

RP P

rogram, including E

xam preparation resources at:

ww

w.garp.org/erp

E

mail: m

emberservices@

garp.com

•

Connect w

ith other Certified E

RP

s and ER

P Exam

candidates at:

ww

w.facebook.com

/garperp

w

ww

.linkedin.com – “Energy R

isk Professional group” •

Follow G

AR

P on Twitter:

@G

ARP_R

isk

Use the “Ask a Q

uestion” feature to submit w

ebinar questions

26 Contact U

s Directly A

nytime

•Chris D

onohue: chris.donohue@garp.com

•M

ichael Sell: michael.sell@

garp.com

Creating a culture of

risk awareness

®

Global Association of

Risk Professionals 111 Tow

n Square P

lace 14th Floor Jersey C

ity, New

Jersey 07310 U

SA

+ 1 201.719.7210 2nd Floor B

engal Wing

9A D

evonshire Square

London, EC

2M 4Y

N

UK

+ 44 (0) 20 7397 9630 w

ww

.garp.org

© 2014 G

lobal Association of R

isk Professionals. A

ll rights reserved.

About GARP | The G

lobal Association of Risk Professionals (GAR

P) is a not-for-profit global mem

bership organization dedicated to preparing professionals and organizations to m

ake better informed risk decisions. M

embership represents over 150,000 risk m

anagement practitioners and researchers from

banks, investment

managem

ent firms, governm

ent agencies, academic institutions, and corporations from

more than 195 countries and territories. G

ARP adm

inisters the Financial Risk M

anager (FRM

®) and the Energy Risk Professional (ERP®) Exam

s; certifications recognized by risk professionals worldw

ide. GAR

P also helps advance the role of risk m

anagement via com

prehensive professional education and training for professionals of all levels. ww

w.garp.org.