Smart Global believes that organisations generally find it difficult to implement ETRM systems successfully, on time and within budget. It is often at implementation stage when projects hit the biggest obstacles. It is at that point when complex business requirements, from traders and business teams, are not aligned with the functionality of the ETRM system.
Available resources are often limited within risk teams and there is pressure from management for a seamless and expedient implementation. The reality is often different; months of fire-fighting culminate in severe reporting issues, low staff morale and a lack of confidence in the system functionality.
Smart Global can help organisations manage implementations and lead them to a successful conclusion, while at the same time taking the pressure off time-constrained trading and risk teams.
- Smart Global brings practical solutions to ETRM implementation projects
- We focus on the business transaction processing rather than software and coding. By doing this we have resurrected some ETRM projects from what seemed an impossible outcome
- We use the functionality provided to us by the selected ETRM system
- We understand complex pricing and operational issues and how they should affect exposure and P&L
- We focus on the business process to ascertain meaningful reporting and output from the selected system
- We are oil and gas trading practitioners and work to change the culture, driving improvements and best practice in the risk management arena
Implementation Stage Actions
- Assist with designing book structure
- Focus on efficient internal deals to necessitate meaningful reporting
- Work alongside the ETRM providers and software developers
- Have close interface with the risk team
Post-Implementation Stage Actions
- Encourage and promote front and middle office acceptance of the new system
- Detailed line-by-line reconciliation between ETRM and financial accounting systems or, if parallel, a 3-way reconciliation between both ETRM systems and financial accounts
- Practical training of users to ensure good processes are implemented and followed
- Promote close interface between risk team and traders