The newly designed trading unit causes management to rethink its entire approach to trading risk.
A large European energy player (with a Pan-European footprint) wanted to set up a best practice integrated trading unit for power and gas for their existing and future asset portfolio. BCG helped the company define a business and organizational model that extracts the maximum trading value of the company's assets. The new model respected portfolio and market constraints without putting the company at additional risk. The structure of the business model was based on potential value creation by commodity, cross-commodity, and country.
BCG helped guide the design of the trading organization, including front office desk structures, steering framework, and processes. The team also collaborated to design the new risk framework, the portfolio management and optimization frameworks, and the IT landscape.
The newly designed trading unit caused corporate management to rethink its entire commercial approach to trading and risk management. The successful initiative led to further plans about how to leverage trading market opportunities across the entire organization.