Business strategy, trading, and risk management

Overview

Developing appropriate business strategies has become increasingly complex in the face of rapidly evolving markets and regulatory systems. Growing market volatility and the heightened focus of regulators on issues ranging from the environmental impacts of energy resource development to the oversight of financial and physical trading functions increase the importance of proactive planning. Developing a sound and adaptive business strategy requires a clear understanding of markets, evolving regulatory regimes, and the expectations of consumers.

Bates White provides a range of advisory services, including cost-benefit analyses, environmental compliance and permitting strategies, development of catastrophic risk analyses, and economic impact analysis. We work with energy industry executives to identify clear, fact-based strategies for developing and growing energy-related businesses. We work with energy companies, commissions, and RTOs and ISOs to develop and evaluate energy efficiency and demand response programs. And we work with companies or exchanges to develop specific protocols and processes to monitor trading activities, compliance and reporting standards, and internal fail-safe systems.

Risk management

Recent enforcement actions and plaintiffs’ suits have raised the stakes in monitoring the activities of trading companies. Bates White’s experts are familiar with metrics that may raise red flags with regulatory agencies. Combined with our familiarity with commodity and financial markets and our experience with the analysis of large sets of trading data, we can work with you to design trading protocols and internal monitoring systems that will ensure your company is in compliance with organizational principles.

Exchanges and regulators likewise are concerned with continually enhancing their ability to detect manipulative trading—whether in electronic high-frequency trading or in physical markets—and to protect against situations that may threaten the stability of markets. Bates White can bring to bear its considerable experience in commodity and financial markets in cases of alleged manipulation and its world class econometric capabilities and experience with market and trading data to enhance surveillance systems.

Business strategy

An organization’s business strategy represents its planned course of action given current and expected economic and social environments. Ultimately, strategy development is an internal process, and one that needs to be learned and owned by the organization. A critical first step is to develop a concise statement of the business strategy, in clear terms that can be readily understood by everyone in the organization. Bates White’s experts are skilled at helping you and your organization understand the relevant business environment, accurately describing your organization’s capabilities, and developing a consensus around your organization’s goals.