Financial risk management for the energy sector

This risk management course is tailormade for the energy sector. It is a partnership between Hydro Energi and BI Norwegian Business School. The course provides a broad overview of the mathematical modelling necessary for modern risk management, as well as an understanding of the various risks and uncertainties that one is facing when investing in financial markets. To this end it is important to understand the translation from financial data into random mathematical functions, or stochastic processes. Based on statistical methodologies one can estimate certain distributional properties of the financial data, which again induces the construction of a stochastic process. This process can then be used in scenario-based simulations, such as Monte Carlo, in combination with various risk measures, to further understand the possible distribution and associated risks of future fluctuations of the asset price.