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Evolving trends in risk management:
Making energy supply a part of your planning strategy
Laurie Rutherford
Enterprise Risk Manager, CenterPoint Energy

The concept of spring cleaning should apply to more than the familiar, annual practice of tidying up one's home for the new year. Savvy executives know that it's essential that they set aside time to take an annual business review to ensure that operations are solid, evaluate all known business risks and identify any new risks that could impede its ability to meet company goals and objectives. This process is called risk management.


The evolving nature of risk management

Historically, risk management has included the analysis of credit, contract and market risks. However, changing market dynamics?including regulatory, legislative and financial developments?has made Enterprise Risk Management (ERM) essential. ERM is a type of risk management that includes a holistic evaluation of strategic and business operational risk. For commodity-sensitive companies, this includes developing a solid, comprehensive energy supply strategy.


Turn to the experts at CenterPoint Energy
CenterPoint Energy Services can help you prepare for an ERM review by offering innovative solutions for managing your natural gas supply. Our risk management services include:

  • Basis price lock: Lock natural gas basis delivery costs for a fixed volume and term.
  • Commodity price lock: Lock natural gas commodity price for a fixed monthly volume and term.
  • City gate price lock: Lock basis delivery price and the NYMEX commodity price for a fixed monthly volume and term.
These services may be essential to your risk management strategy. They allow your company to have a high degree of natural gas price certainty giving you more control over energy budgets and predictability when forecasting energy costs.


Thorough risk management plans produce better results

CenterPoint Energy Services reminds customers that preparation is essential for successful risk management planning. When companies are proactive in assessing their organizations' full range of risks, including the need to secure a reliable energy supply, they will have a greater ability to handle unexpected business challenges. The experts at CenterPoint Energy are ready to help you evaluate operational risks. Call us today!

To learn more about CenterPoint Energy Services' solutions for managing natural gas supply needs, call 800-495-9880 or visit us online at CenterPointEnergy.com/CES.

About the author: Laurie Rutherford is the Enterprise Risk Manager for CenterPoint Energy. She coordinated the continued development and implementation of CenterPoint Energy's corporate Enterprise Risk Management (ERM) program since its inception in 2005. Ms. Rutherford has more than 26 years of experience in energy risk management, marketing, accounting, trading, derivatives and commodity contracts, credit and risk control. She holds three finance-related degrees from the C.T. Bauer College of Business at the University of Houston.

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