SECTOR FOCUS - ENERGY & COMMODITIES
Risk moves at market speed.
Your platform should too.
When your business is in energy or commodities, you are as global as you are local—and you are never not on. FRG delivers Intelligent Risk that keeps pace with you, around the clock and around the world.
RISK CAPABILITIES WE ADDRESS
VaR & Expected Shortfall
Parametric, historical, Monte Carlo, and GAN methodologies
Historical & Hypothetical Scenarios
Forward-looking loss estimation and expected credit loss compliance
Synthetic Trade Analysis
Strategy testing with isolated or portfolio-integrated risk measures
Performance & Limit Monitoring
Continuous breach detection and automated recommendations
4.3T
FRG platforms process over $4.3T in assets on a monthly basis
The Environment
What the market demands of your operations
Whether you are hedging physical risk with financials or targeting an active return, time is of the essence. If your risk numbers are not up to the minute, you are flying blindly into market volatility. FRG Intelligent Risk is built to close that gap, giving you current, trusted metrics no matter when and where you need them.
Timeliness
Your risk numbers must be ready when you get to your desk, regardless of your time zone.
Our approach: An intelligent risk system that delivers on that requirement, on schedule, every time.
Speed
You have no use for expired metrics. You need to act as the market moves, and your risk numbers must keep up.
Our approach: We optimize your risk platform to run continuously so you always know where you stand.
Reliability
Exceptions and disruptions are costly. You must be able to get and trust your risk numbers.
Our approach: We monitor and manage your risk platform so it runs smoothly, even when you aren't looking.
Completeness and Detail
There should not be a trade off between the big picture and the crucial detail. You must have both.
Our approach: A risk platform that handles any book structure and deal type, company-wide and at the single trade and price level.
VOR risk intelligence suite
The metrics you need to manage risk across your operations
The VOR Risk Intelligence Suite gives energy and commodities businesses a single platform for the full range of risk measurement. VOR Market Risk sits at the core, from standard sensititives to advanced simulation, with the flexibility to handle proprietary valuation functions alongside standard ones.
Core Metrics
VaR & Expected Shortfall
Value-at-risk, expected shortfall, and all meaningful breakdowns and drivers, across methodologies ranging from parametric and historical simulation to Monte Carlo and the advanced General Adversarial Network (GAN) approach. Proprietary and custom valuation functions coexist with standard ones, all in one place.
Stress Testing
Historical & Hypothetical Scenarios
See what historical market stresses would mean for your portfolio if they happened today. Ask the platform to construct hypothetical scenarios and run them for you, giving you a forward-looking view of risk exposure before the market moves.
Strategy Testing
Synthetic Trades
Test your strategies by adding synthetic trades to your current portfolio or measuring their isolated risk. Especially powerful when combined with market scenarios,so you can explore the full risk landscape of any trade before you put it on.
Monitoring
Performance Tracking
FRG monitors and manages your risk platform, and the platform already does much of the tracking and correcting itself. Metric and limit breaches as well as model drifts surface when they happen, not at scheduled reviews. The platform deploys its own next-step recommendations, upon your approval.
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We know how to do this.
FRG has built and deployed risk platforms for energy and commodities businesses across the globe. We understand the operational complexity, the speed demands, and the breadth of instruments your business depends on. Let's build yours.
Top-5 Energy Company
End-to-End VaR Automation
Automated a VaR platform with daily data validation, backtesting, and stress testing capabilities; results automatically published to database and interactive dashboards for VaR, ES, Attribution, and Contribution metrics.
Multi-Fuel Power Producer
Earnings-at-Risk at Scale
Delivered an Earnings‑at‑Risk add‑on that merged financial and physical asset modeling, reducing earnings volatility by 28% and empowering the client to scale trading with compensation tied to economic capital performance.
FAQ
Frequently Asked Questions
Can we modify, expand, or enhance VOR Market Risk independently?
Yes. The VOR Market Risk UI is designed to give the business user maximum flexibility when it comes to configuring, changing, and expanding the functionality.
In addition, VOR Market Risk comes with access for implementation for building new streams/processes or combining existing processes into new streams.
What volatility models are available?
VOR Market Risk can integrate third party libraries to leverage any volatility model you might wish to employ, including EWMA, GARCH, and ARIMA.
Walk us through a typical daily VaR run procedure.
A daily VaR procedure usually begins with automated data gathering and preliminary VaR/Attribution calculations even before any business users start their day.
That means that business users can focus on reviewing preliminary results, exception reports, and making adjustments before the final VaR/Attribution results are kicked off and distributed throughout the organization. This is typically done mid-morning.
Then the business users can shift attention to detailed analyses, such as what-if, stress testing, and back-testing, ad-hoc research projects, and new business development.
After business close there will typically be automated runs for historization and data retention.
Does VOR Market Risk have a What-If tool?
VOR Market Risk offers an integrated What-If tool to assess the risk impact of synthetic trades. Business users can enter synthetic trades into a form that validates and readies the data for upload to the UI. After upload the impact of the synthetic trades can be assessed either together with an actual portfolio or as stand-alone trades.
In addition, VOR Market Risk has a functionality to generate its own synthetic data. The synthetic data is generated in accordance with the data model and values already in the playpen/environment. This is helpful for creating larger volumes of data such as whole synthetic portfolios.