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IB835 - Energy Trading & Risk Management

  • Module code: IB835
  • Module name: Energy Trading & Risk Management
  • Department: Warwick Business School
  • Credit: 10

Content and teaching | Assessment | Availability

Module content and teaching

Principal aims

" The Global Energy MBA is a course that combines the cross-functional education of management practices offered by WBS’s current MBA with a focus on the issues and challenges of the energy industry. Activities within the industry are increasingly interdependent, operate on a global scale and face considerable challenges in meeting society’s goals of secure, reliable and affordable energy while avoiding the feared consequences of climate change. Trading is the activity that links sectors within the energy industry and underpins its global nature. While long term, fixed price contracts can still be found, much of supply and demand are reconciled by near term trading or contracts that refer to market prices. Some trading is carried out within energy companies and some within companies in the global finance industry. Some companies trade to just buy/sell their product whereas other also trade to speculate. The aim of this module is to understand energy trading and how it fulfils its role in maintaining a global market. Trading is often a somewhat separate activity within a firm requiring different skills and management models. However, as companies increasingly manage energy from multiple sources, an understanding of markets is required by a broader spectrum of management across a company. As high profile cases in energy and other industries have shown, effective risk management to avoid exposure and losses is critical and so the module will also consider the management practices necessary to successfully govern trading activity.The module aims to help participants understand the essential role trading often plays in a firm whereas it is often seen as a “black box”. Participants will understand the nature and working of commodity markets, together with conventional and more exotic instruments that are used. They will be challenged to draw the links between strategic and operational activities of a firm and how successful trading influences overall success and profitability. Likewise, they will appreciate the risks associated with trading activity, how these are influenced by strategic and operational choices, and the importance of effective risk management. "

Principal learning outcomes

Subject knowledge and understanding: Understand the role of trading in companies and across the industry; Understand the nature and operation of commodity markets; Demonstrate a knowledge of traditional and newer trading markets (Oil vs. LNG, carbon, etc); Appreciate the very different business models between trading and other activities, yet how they influence each other.Cognitive Skills: Understand how profit & loss arise within the rapid activities of trading; Appreciate how the general concepts of trading vary between established & new markets (oil vs.carbon). Key Skills: Manage high speed activities through appropriate risk frameworks and separation of activities; Collaborate & participate in decision-making through the group exercise. Subject-Specific/Professional Skills: Understand the linkages between trading and other business activities; Understand the risks inherent to operating in commodity-based products.

Timetabled teaching activities

"Total contact hours 15 hrs: Lectures during residential week: Two per day over 2.5days, i.e. 5 @ 2hr each = 10hr; Seminars by invited speakers during residential week: One @ 1hr each = 1hr Group work sessions during residential session: One per day @ 2hr each = 4hr; Module duration (weeks, if applicable): Overall module duration is 12 weeks; Other (please describe):e.g. distancelearning,intensive weekend teaching: The blended learning approach supports learning throughout the module duration through: A comprehensive course handbook for effective self study; Use of my.wbsLive to provide online seminars & webcasts; Group work supported by my.wbs; A moderated, individual online learning log."

Departmental link

https://my.wbs.ac.uk

Module assessment

Assessment group Assessment name Percentage
10 CATS (Module code: IB835-10)
A1 (Assessed work only) Assessed Course Work 70%
Assessed Course Work 30%

Module availability

This module is available on the following courses:

Core

N/A

Optional Core

N/A

Optional
  • Postgraduate Taught Business Administration (N1P2) - Year 10
  • Postgraduate Taught Business Administration (N1P2) - Year 2
  • Postgraduate Taught Business Administration (N1P2) - Year 3
  • Postgraduate Taught Business Administration (N1P2) - Year 4
  • Postgraduate Taught Business Administration (N1P2) - Year 5
  • Postgraduate Taught Business Administration (N1P2) - Year 6
  • Postgraduate Taught Business Administration (N1P2) - Year 7
  • Postgraduate Taught Business Administration (N1P2) - Year 8
  • Postgraduate Taught Business Administration (N1P2) - Year 9
  • Postgraduate Taught Business Administration (for the Global Energy Industry) (N1PN) - Year 10
  • Postgraduate Taught Business Administration (for the Global Energy Industry) (N1PN) - Year 2
  • Postgraduate Taught Business Administration (for the Global Energy Industry) (N1PN) - Year 3
  • Postgraduate Taught Business Administration (for the Global Energy Industry) (N1PN) - Year 4
  • Postgraduate Taught Business Administration (for the Global Energy Industry) (N1PN) - Year 5
  • Postgraduate Taught Business Administration (for the Global Energy Industry) (N1PN) - Year 6
  • Postgraduate Taught Business Administration (for the Global Energy Industry) (N1PN) - Year 7
  • Postgraduate Taught Business Administration (for the Global Energy Industry) (N1PN) - Year 8
  • Postgraduate Taught Business Administration (for the Global Energy Industry) (N1PN) - Year 9