ETRM
SOLUTION
PROVIDERS - 2018
TIMETRICS RISK
ADVANCED ANALYTICS FOR ENERGY RISK
MANAGEMENT
O
rganizations in every industry deal with the
complexities—and other areas of risk that aren’t easily
challenge of risk quantification, however, those
quantifiable,” begins Samantha, President of Timetrics Risk.
in the energy trading industry face even
Ms. Kumaran founded Timetrics Risk, a minority woman
higher risks, owing to the complex—
owned business, in 1993. For twenty five years,
often bespoke—profiles of non-traditional
its’ client base has spanned investment banks,
physical assets, which include volumetric
Fortune 500 companies, large and small utilities,
and climate risks, renewable energy and
government owned entities, and deregulated
variable supply risks, exploration risks,
energy players.
which all need to be integrated with highly
Timetrics is also a leader in the
volatile market risks. This increased risk
commodities derivative market, developing
should mandate an increased investment
a solution called Timetrics Z-Live™ that
in high-end, analytical tools, that not only
supersedes many platforms, in its advanced
Samantha Kumaran
provide robust market risk calculations, but
mathematical ability to handle large portfolios of
also tackle the framework of non-traditional
exchange-traded commodity derivatives, with realrisks, for example in integrating volumetric risk,
time intraday CME compliance, providing a competitive
climate forecasting, and asset-based risks associated with
edge in the intraday market risk for Futures Clearing Merchants
exploration, drilling, and life cycles of generation.
(FCMs’). Timetrics also has successfully pioneered analytic
Samantha Kumaran, who has earned a first class honors
solutions, in the bespoke risk management of electricity
in Applied Mathematics, from Trinity College, University of
transmission contracts such as FTR’s and TCC’s, where market
Cambridge, UK, is the founder and owner of Timetrics Risk,
risk calculations are more unique in time series distribution,
a boutique risk analytics solutions company, which provides
liquidity and auctions in the secondary markets.
advanced analytical solutions to address the challenges
Timetrics analytical engines are IT neutral and modular
of enterprise risk management in the commodities and
based and can interface with existing software platforms.
energy trading industry. “We solve problems in unchartered,
Moreover, the modular-based solutions offer a greater degree
non-traditional markets—which have high mathematical
of flexibility and compatibility that can be interfaced with
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any bigger system, seamlessly and
effortlessly.
With innovation in its DNA, Timetrics
is continuously developing new solutions
to challenge the status-quo in advancing
new risk measures that go beyond
VaR, and pioneering risk management
methodologies in that tackle nontraditional, complex, and hard-to-
(on contractual provisions, or whether
to drill or not drill), fractionation, and
liquidity in the deregulated natural
gas markets. The impact was several
millions of dollars upside to the client, in
improving operations.
With a focus on improving client’s
returns, and to determine/master risks
in non-traditional areas, Timetrics
We solve problems in unchartered, nontraditional and derivatives market—which have
high mathematical complexities—and other areas
of risk that aren’t easily quantifiable
quantify energy risk problems.
Timetrics’ solutions can be better
understood through their offerings to
a natural gas and oil exploration client,
a Fortune 100 company, who had a
complicated physical asset portfolio, of
several thousand gas wells, pipelines,
and contractual obligations spread over
a large region in the southwest U.S.
Timetrics pioneered a one-of-a-kind,
customized Risk Adjusted Return on
Capital (“RaRoC”) solution tailored to
the client’s gas exploration business
which took into consideration, wellhead
decline, quality of gas, real optionality
owns the trademark for a risk solution
Infrastructure-at-Risk™, which calculates
risks based on asset planning and system
planning for infrastructure across
roads, railways, generation assets and
integrated systems. Examples of how
Infrastructure-at-Risk™ carves a niche
in the market place, is it can assist in
governmental and energy planning
from a quantified risk perspective, such
as consideration of asset life cycle,
natural disaster protections, hedging,
system planning, flooding, backup
generation and impacts to generation
and utilities distribution. Deployment
of infrastructure planning can be in the
billions of dollars.
Additionally, the boutique, advanced
analytical solution provider has an
agile approach to quickly understand
the needs of their clients and builds
solutions accordingly. At the core, what
differentiates Timetrics, is their ability
to build customized solutions based on
client needs, and its focus to use risk
management to improve shareholder
value. Timetrics business model has an
emphasis on creativity and innovation
at the forefront, a focus on research and
development, and the provider always
has something new in the analytical
engine pipeline.
Samantha concludes, “Timetrics'
vision is to integrate risk management
into the thought-process and the spinal
cord of the company's organizational
planning to help create financial value
and better optimize and use risk
capital, to allocate risk capital cost to
business to improve a client’s revenue.
We are becoming quite competitive
in the US with our derivatives trading
and so we are looking at expanding
the usage of our derivatives risk
management capabilities and expand
in the positioning of the marketplace.
We foresee a massive potential to tap
into the Middle East oil markets, and
developing infrastructure markets.” EC
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