What are the Top  Risks associated with Enterprise Risk Management -ERM & Commodity Energy Trading and Risk Management CTRM-ETRM software implementations and how can they be avoided:

Blog Part 3 of 3- Request for Proposal -RFI RFP Considerations for Commodity Energy Trading & Risk Management C-ETRM Back-office, Energy Billing & Energy Contract Settlement Software

Back-office Energy Billing and Settlement Considerations:

1. Is the system flexible enough and easy-to-configure for unique settlement and bi-lateral contracts. In other words, does coding need to be changed in order to accomodate complex energy settlement and billing challenges. HINT: Look for formula-driven software that requires "No Coding" to meet unique billing challenges
2. Does the billing system offer easily configurable templates that can quickly meet the needs of your organization without the need for coding? Does the system allow for manual invoice line corrections?
3. Is the billing and settlement seamlessly integrated with the front and middle-office so changes flow back and forth through a trades entire lifecycle
4. Does the system offer the ability to shadow settle and manage bi-lateral contracts
5. Does the system automate General Ledger accounting journal
6. Will it easily integrate with your GL and/or front-office middle-office etc. HINT: Look for C-ETRM software that has embedded middle-ware software that promotes ease-of-intregration
7. Will the system accomodate the complexity of the wholesale billing needs and/or will the system accomodate for energy retail billing

Back-office Derivative Hedge FAS 133, FAS 157 IAS39 Accounting Compliance Considerations:

1. Look for a C-ETRM system that offers full compliance with all accounting standards including FAS software for FAS 133, FAS 157, IAS 39, CICA 3865, IFRS 7 and AASB 139 accounting standards- NOTE: FAS is the N. American Financial and accounting standards board.
   
2. Look for a programmable work-flow driven derivative hedge accounting solution that automates many of the process oriented tasks for instance does the system automate the management of hedge designations and de-designations and does auto generate compliance reports
   
3. Look for ease-of-integration, an important component of hedge accounting because trades must be captured and straight-through processed and/or work seamlessly within a C-ETRM system
   

Part 2 of 3 Blog Series

Looking for the latest in Commodity Trading Software Platform Architectures that require no coding to implement and manage? Like the Iphone was to the cell phone industry, new template and formula-driven commodity trading and risk managment- CTRM architectures are blazing a new path in the commodity trading space  ....These systems are so easy-to-use and configure, you can implement them yourself?

Formula-driven Vs. Hard Coded ETRM Architectures- Differences & Benefits
With a host of options, features, functions, benefits and architectures available in the Ctrm-Etrm (C-Etrm) software space there remains some important differences to consider when embarking on a C-Etrm software system purchase. First, let’s distinguish the difference between hard coded software (Traditional Etrm Software) and new template-based and/or formula-driven architectures.