4 Benefits of an ETRM System

4 Benefits of an ETRM System

By Energy CIO Insights | Thursday, March 19, 2020

Several companies are implementing Energy Trading and Risk Management (ETRM) software to manage risk, and streamline process.

FREMONT, CA: Energy Trading and Risk Management (ETRM) software mainly focus on energy commodity trading and risk management. Financial trading companies, banks and physical energy companies from upstream, midstream to downstream use the software to streamline their process.

Here are some benefits of ETRM System:

1. Provides front to back-office support for energy traders

Energy traders, oil and gas firms, and suppliers get front to back-office support from ETRM systems. It covers a full range of commodities and derivatives. Most of the back ends support provided by the ETRM system comprises deal capturing and price management, logistics and scheduling, position management, risk reporting (VaR, EaR), valuation and optimization, accounting, settlement, and regulatory reporting.

2. Supports physical and financial trading

Top 10 ETRM Solution Companies - 2019Most of the time, prices of commodity are unpredictable. On the other hand they constitute a significant portion of production costs. Therefore, physical and financial trading s supported by a comprehensive ETRM system. A complex portfolio is provided by the ETRM systems that can be used by different firms, energy traders, and energy suppliers with significant price exposure.

3. Cloud-based solutions with great functionalities

ETRM systems are cloud-based solutions with multiple functionalities. They function faster in various capacities. It takes half a time in implementation that it will take the on-premise systems to function. With the help of insight provided by ETRM, business owners can easily make informed decisions. As energy traders can easily use the system and can make quick and informed decisions.

4. Increased efficiency and reduced cost

To improve the productivity and efficiency of gas and oil firms, ETRM system is required. As ETRM systems are designed to work without manual supervision so, trading companies do not have to spend a large amount of operating costs on aggregating data and other repetitive tasks. They save a lot of time of organizations and let employees to focus on important aspects of the business.  

See also: Top Energy Tech Solution Companies

Weekly Brief

Read Also