Business success with modern risk management
Anyone involved with the generation and trading of power and gas must constantly keep an eye on the associated risks. BelVis SIM, the indispensable tool to improve business planning, identifies your commercial risks (credit/counterparty risk, price risk and volume risks) and provides risk management safeguards. BelVis SIM is also well suited to the development of business strategies.
Through the use of Monte Carlo method simulations, BelVis SIM displays not only profits and losses, but also the probability with which they may occur. The results are displayed graphically in BelVis, or returned in the form of special risk reports. BelVis SIM also calculates meaningful risk figures. The relationships between commodities are taken into consideration, and calculation may take place across multiple clients.
BelVis SIM – support for all classes of risk:
- Counterparty risk
- Price risk
- Volume risk
In addition to functions from BelVis PFM such as Mark-to-Market and Delta Risk, BelVis SIM can also calculate:
VaR (Value at Risk), PaR (Profit at Risk), cVaR (conditional Value at Risk)
cPaR (conditional Profit at Risk)
BelVis SIM calculates the probability distribution of future profits and losses using the state-of-the-art in risk management: Monte Carlo method simulations* of forward prices, spot prices and load profiles. The comprehensive scenario simulation systematically identifies the chances and risks involved in your business and evaluates them with respect to the probability with which they may occur and the gravity of their effects.
Your advantages with Monte Carlo method simulations
- You receive not only results, but also the probability with which they will occur
- Quick and easy recognition of possible profits and losses through graphical results display
- Flexible procedure considers multiple boundary conditions
- Scenario analysis possible
- Precise results through a realistic calculation basis