Master the Knowledge to

Manage Energy Risk

The Value of ERP Certification

Global Association of Risk Professionals

January 2014

Introductions and Agenda

GARP and its role in Risk Management
Energy Risk Management and the ERP Certification
Perspectives on the role of the ERP in individual careers
Everything you wanted to know about the ERPbut were afraid to ask
Need photo
Chris Donohue, PhD

Questions & Answers

Managing Director, Research

and Educational Programs
GARP

Ben Baglin, ERP

Shaun Connell, ERP

Andrew Tudor, ERP

Michael Sell

Head of Market Risk

EDF Trading NA

Head Trader, Eastern Energy

TransAlta Corporation

Energy Resource Planning

NMPP Energy

SVP, ERP Program Manager

GARP

GARPs Risk Management Certification Programs

Energy Risk Professional (ERP) program
Launched in 2009 to address the growing importance of energy
Program objective assess an individuals ability to measure and manage
physical and financial risk in the energy industry

Financial Risk Manager (FRM) program

Leading global professional designation program for risk management
Administered by GARP since 1997
Program objective assess an individuals ability to measure and manage
risk in a real-world environment

Fundamental Forces are Driving Demand for

Energy Risk Managers
Energy companies are increasingly globalized and interconnected
Technological innovation is driving growth in reserve development
Relationship between physical and financial markets is evermore complex
Transactions are happening faster and market data sets are getting larger
Regulatory initiatives and requirements are increasing
Growing awareness and implementation of ERM initiatives

The ERP Certification Prepares You for a

Career in Energy Risk
A unique professional designation that is gaining industry recognition
A practitioner driven exam curriculum guided by an oversight committee comprised
of CROs, commodity traders, risk managers and consultants from energy sector
The ERP Exam is designed to assess an individuals ability to measure and manage
physical and financial risk in the energy industry.

Continuous learning opportunities through GARPs CPE Program

Positive signaling to colleagues and employers that will differentiate you

Access to a global network of like minded energy market and risk professionals

Validity and Reliability

Practitioners Inform Exam Curriculum and Development

The ERP is overseen by an Energy Oversight Committee (EOC)
EOC is comprised of high-level practitioners with expertise across a range of risk
management topics that impact the global energy markets.

Regular job task analyses and curriculum surveys are performed to identify
current industry demands and specific exam topics.
The ERP curriculum is reviewed and revised annually in conjunction with the EOC

The ERP curriculum is described in the 2014 Study Guide and AIMs documents
The AIMs summarize the knowledge points contained in each required reading

ERP item writers and other Subject Matter Experts (SMEs) rely on the AIMs to develop
examination items (questions)

2014 Energy Oversight Committee

Ken Abbott

Morgan Stanley & Company

Richard Apostolik

GARP

Dr. Lawrence Austen

Trafigura

Gordon E. Goodman*

Alliance Risk Group

Jeff Jewell

DTE Energy

Glenn Labhart (EOC Chairman)

Labhart Risk Advisors

Alessandro Mauro

Litasco SA

Mark D. May

Philips 66

Shawnie McBride

Direct Energy

Ken Robinson

Calpine

Michael Sell

GARP

Jonathan C. Stein

Hess Corporation

Dr. Chris Strickland

Lacima Group

Dr. Glen Swindle

Scoville Risk Partners

John Wengler

Hess Corporation

* Retired Occidental Petroleum

The ERP Exams Are Designed to Be Fair but Rigorous

Psychometric testing is completed on each exam
Positive results indicate the ERP reliably measures competence in energy risk skills

Historical Pass Rates

Nov
2009

May
2010

Nov
2010

May
2011

Nov
2011

May
2012

Nov
2012

May
2013

Nov
2013

61%

62%

49%

54%

51%

50%

45%

45%

47%

Market Acceptance of the ERP

10

Candidate Registrations Are Growing

11
* November 2009 only

Awareness is Global
Countries with the Highest Percentage of ERPs

Canada 8%

USA 36%

UK 11%
Germany 5%
Switzerland 7%
India 7%

Singapore 6%

12

ERP Highlights
Over 700 Certified ERPs globally
More than 60 organizations with two or more ERPs
ERPs come from more than 50 countries

Organizations with the most ERPs

13

Insights from ERPs

14

Market Risk Management: Ben Baglin

Ben Baglin, ERP, Head of Market Risk, EDF Trading North America
Ben has 16 years of experience in trading and risk management in
the global oil market, and the European and US Gas and Power
markets respectively. He has held trading, portfolio management and
risk manager roles at Shell Trading, Graham Capital Management,
Merrill Lynch and EDF Trading in the US and Europe.

Describe the types of activities you are typically involved with in your role at EDF Trading.

What are some of the most important trends in energy markets and the role of risk management?
What differentiates energy market risk from traditional financial market risk?
What do you consider to be the underlying value in becoming a Certified ERP?

15

Power Trading: Shaun Connell

Shaun Connell, ERP, Head Trader of Eastern Energy, TransAlta
Shaun has more than 10-years of power trading experience at
TransAlta. As Head Trader of Eastern Energy, he is responsible for
achieving gross margin 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 implementation of an Energy Trading Risk
Management (ETRM) platform that will replace current business
processes and legacy systems.

What knowledge and skills have been most instrumental in your career success?
How did you hear about the ERP?
A number of your colleagues at TransAlta have taken the ERP what feedback have you received?

Describe the benefits you envision from the integration of the ERP into TransAltas risk culture?
What advice would you give ERP candidates who are interested in pursuing a career in energy trading?

16

Quantitative Modeling and ERM: Andrew Tudor

Andrew Tudor, ERP, Energy Resource Planning, NMPP Energy
Andrew recently joined the Municipal Energy Agency of Nebraska
(MEAN) as energy resource planner. Prior to joining MEAN, Andrew
held a variety of risk roles at the Tennessee Valley Authority (TVA)
where he was engaged in enterprise risk, operational risk, quantitative
risk modeling, commodity forecasting, and long-term enterprise
planning. Before transitioning to the energy markets, Andrew was a
statistician at the United States Census Bureau.

What knowledge and skills did you find the most useful in your transition to energy risk?
Describe the risk management tools and modeling projects you have helped implement.
What have you found most appealing about working in the energy markets?
How has the ERP Certification added value to you personally and in your career progression?
What advice would you give ERP candidates considering a transition to energy risk management?

17

2014 ERP Program Offering

18

The Path to Becoming a Certified ERP

Pass the ERP Exam
140 question multiple-choice exam
Two 4 hour sessions with a break for lunch

Fulfill required work experience

Can be completed prior to or after sitting for the exam
Candidates have 5 years to fulfill requirement after passing exam

Participate in Continuing Professional Education (CPE)

40 credit hours earned over 2 years
GARP provides monthly listing of CPE opportunities

Pass ERP Exam

19

Demonstrate Two
Years Relevant
Work Experience

Certified
Energy Risk
Professional
(ERP)

Mandatory
Continuing
Education

Exam Curriculum Covers the Entire Energy Value Chain

Physical Commodities
Oil, Gas, and Coal markets (25%)
Electricity Markets and Renewable Generation (25%)

Financial Markets and Risk Management

Financially Traded Energy Products and Structured Transactions (15%)
Energy Commodity Price Formation and Market Risk (15%)
Credit, Counterparty, and Country Risk Assessment (15%)
Enterprise Risk Management and Business Ethics (5%)

20

Download Resources for Exam Preparation

www.garp.org/erp/study-center/study-materials.aspx
Study Guide (Free)
AIMS (Free)
Exam Preparation Handbook (Free)
ERP Core Readings Course Pack (US$295 + shipping)

www.garp.org/erp/study-center/free-practice-exams.aspx
Practice Exams (Free)

www.garp.org/erp/study-center/exam-preparation-providers.aspx
Register with a GARP approved ERP Exam Preparation Provider

21

Mandatory Continuing Education for ERPs

Earning the ERP is just one step in building your energy risk career; maintaining
your knowledge and skills is equally important.
Certified ERPs are required to earn 40 hours of CPE credit every 2 years
GARP helps ERPs stay abreast of current industry trends and risk management
knowledge through our Continuing Professional Education (CPE) Program.
The CPE program is global, flexible and delivers an extensive range of highly
relevant programs from webcasts and training programs to live conferences and
seminars.
GARP has partnered with a broad range of global providers of education and
training to bring you the most up-to-date information and share best practices in
risk management

In addition to structured activities, GARP shares an extensive list of articles,

journals, whitepapers and other published materials on a monthly basis

22

ERP Program Registration Timeline and Fees

ERP Program Enrollment and Exam Registration Fee
May 17, 2014
Enrollment Fee US$300

Nov 15, 2014

Valid for 4 years

Early Registration US$450

Dec 1, 2013 - Jan 31, 2014

Jun 1, 2014 - July 31, 2014

Standard Registration US$575

Feb 1, 2014 - Feb 28, 2014

Aug 1, 2014 - Aug 31, 2014

Late Registration US$750

Mar 1, 2014 - Apr 15, 2014

Sep 1, 2014 - Oct 15, 2014

Enrollment fee includes 1-year complimentary GARP Individual Membership

Register for the May 2014 exam at www.garp.org/erp/register/register.aspx

23

2014 ERP Exam Sites

Africa
Ghana, Accra
Kenya, Nairobi
Nigeria, Lagos
South Africa, Cape Town
South Africa, Vanderbijlpark
Asia
Bahrain, Manama
China, Beijing
China, Chengdu
China, Guangzhou
China, Hong Kong
China, Nanjing
China, Shanghai
China, Wuhan
India, Bangalore
India, Chennai
India, Hyderabad
India, Kolkata
India, Mumbai
India, New Delhi
Indonesia, Jakarta
Israel, Tel Aviv (Sunday)
Japan, Tokyo

24

Jordan, Amman
Korea, Seoul
Kuwait, Safat
Lebanon, Beirut
Malaysia, Kuala Lumpur
Oman, Muscat
Pakistan, Karachi
Philippines, Manila
Saudi Arabia, Riyadh
Singapore
Taiwan, Taipei
Thailand, Bangkok
United Arab Emirates, Dubai
Americas
Bermuda, Paget
Brazil, Sao Paulo
Canada, Alberta, Calgary
Canada, BC, Surrey
Canada, Ontario, Toronto
Canada, Quebec, Montreal
Jamaica, Kingston
Mexico, Mexico City
USA, California, Los Angeles
USA, California, San Francisco

USA, Colorado, Denver

USA, D.C., Washington
USA, Florida, Tampa
USA, Georgia, Atlanta
USA, Illinois, Chicago
USA, Louisiana, New Orleans
USA, Massachusetts, Waltham
USA, Michigan, Ann Arbor
USA, New York, New York
USA, NJ, New Brunswick
USA, North Carolina, Charlotte
USA, Ohio, Columbus
USA, PA, Philadelphia
USA, Texas, Dallas
USA, Texas, Houston
USA, Washington, Seattle
Europe
Austria, Vienna
Belgium, Brussels
Bulgaria, Sofia
Czech Republic, Prague
France, Paris
Germany, Frankfurt
Germany, Munich

Ireland, Dublin
Italy, Milan
Luxembourg
Poland, Warsaw
Russian Federation, Moscow
Spain, Barcelona
Spain, Madrid
Sweden, Stockholm
Switzerland, Geneva
Switzerland, Zurich
The Netherlands, Amsterdam
Turkey, Istanbul
Ukraine, Kiev
UK, England, London
UK, Scotland, Edinburgh
Oceania
Australia, Melbourne
Australia, Sydney
New Zealand, Auckland

Questions & Answers

Use the Ask a Question feature to submit webinar questions

ERP Facebook chat January 29, 2014, 11AM EST

Opportunity for additional Q&A before early registration ends

Learn more about the ERP Program, including Exam preparation resources at:
www.garp.org/erp

Email: [email protected]

Connect with other Certified ERPs and ERP Exam candidates at:
www.facebook.com/garperp
www.linkedin.com Energy Risk Professional group

Follow GARP on Twitter:

@GARP_Risk

25

Contact Us Directly Anytime

Chris Donohue: [email protected]

Michael Sell: [email protected]

26

Creating a culture of
risk awareness

Global Association of
Risk Professionals
111 Town Square Place
14th Floor
Jersey City, New Jersey 07310
USA
+ 1 201.719.7210
2nd Floor
Bengal Wing
9A Devonshire Square
London, EC2M 4YN
UK
+ 44 (0) 20 7397 9630
www.garp.org

About GARP | The Global Association of Risk Professionals (GARP) is a not-for-profit global membership organization dedicated to preparing professionals and
organizations to make better informed risk decisions. Membership represents over 150,000 risk management practitioners and researchers from banks, investment
management firms, government agencies, academic institutions, and corporations from more than 195 countries and territories. GARP administers the Financial Risk
Manager (FRM) and the Energy Risk Professional (ERP) Exams; certifications recognized by risk professionals worldwide. GARP also helps advance the role of risk
management via comprehensive professional education and training for professionals of all levels. www.garp.org.

2014 Global Association of Risk Professionals. All rights reserved.