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2009ERPExaminationSTUDYGUIDE
GARP’S ENERGY RISK PROFESSIONAL (ERP) :THE DESIGNATION FOR RISK PROFESSIONALS IN THE ENERGY SECTOR
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2009 Energy Risk Professional Examination Study Guide
© 2009 Global Association of Risk Professionals. All Rights Reserved. 1
The Study Guide sets forth primary and subtopics covering physical
operations and physical and financial markets for energy, as well
as risk management techniques in both areas. The topics selected
by the Energy Oversight Committee (EOC) reflect those that energy
risk professionals working in practice today must master. The
topics are reviewed yearly to ensure the ERP Examination is
kept timely and relevant.
ERP Examination Approach
The ERP is a practice-oriented examination. Its questions are
derived from a combination of science, industry practice, and
theory, as well as “real-world” work experience. Candidates are
expected to understand both physical and financial energy sectors,
general and specific risk management concepts and approaches,
and how they are applied in an energy risk professional’s day-
to-day activities.
The ERP Examination is a comprehensive assessment, testing
risk professionals on a number of energy-related risk management
concepts and approaches. One should note that it is very rare
that an energy risk professional will be faced with an issue that
can immediately be slotted into one category; in the real world,
an energy risk professional must be able to identify any number of
risk-related issues and be able to manage them effectively.
Readings
Questions for the ERP Examination are derived from the readings
listed under each topic. These readings were selected by the ERP
EOC to assist candidates in their review of the subjects covered by
the exam. It is strongly suggested that candidates review these
readings in depth prior to sitting for the examination.
Test weights and question allocation for the 2009 ERP
Examination will be as follows:
• Physical Energy Markets............................................... 40%72 questions- Exploration and Production (Petroleum and
Natural Gas)........................................................... 5%- Crude Oil................................................................ 5%- Refined Petroleum Products................................... 5%- Natural Gas............................................................ 5%- Liquefied Natural Gas ............................................ 5%- Coal........................................................................ 5%- Electricity ............................................................... 5%- Alternative Energy ................................................. 5%
• Financial Trading Instruments....................................... 20%36 questions
• Valuation and Structuring of Energy Transactions ........ 15%27 questions
• Risk Management in Financial Trading......................... 15%27 questions
• Financial Disclosure, Accounting, and Compliance ....... 10%18 questions
2 © 2009 Global Association of Risk Professionals. All Rights Reserved.
2009 Energy Risk Professional Examination Study Guide
PHYSICAL ENERGY MARKETS
• Exploration and Production (Petroleum and Natural Gas)• Crude Oil• Refined Petroleum Products• Natural Gas• Liquefied Natural Gas• Coal• Electricity• Alternative Energy
NOTE: Because many of the readings in the physical market section cover physical risk management and mitigation techniques aspart of daily operations, there is no separate “risk management” section for physical energy markets.
Readings for Exploration and Production: Petroleum and Natural Gas
1. Charles F. Conaway. The Petroleum Industry: A Nontechnical Guide (Tulsa, OK: PennWell, 1999).• Chapter 2 . . . . . . . . . . . Petroleum Origins and Accumulation• Chapter 3 . . . . . . . . . . . Petroleum Exploration• Chapter 4 . . . . . . . . . . . Contracts and Regulations
2. Energy Information Agency. The Annual Energy Outlook 2009. DOE/EIA-0383(2009) March. Available online:http://www.eia.doe.gov/oiaf/aeo/pdf/aeo2009_presentation.pdf.
3. Institut Francais du Petrole Publications. Oil, Gas Exploration, and Production: Reserves, Costs, Contracts(Paris: Editions Technip, 2007).• Chapter 3 . . . . . . . . . . . Hydrocarbon Reserves• Chapter 4 . . . . . . . . . . . Investments and Costs• Chapter 5 . . . . . . . . . . . Legal, Fiscal and Contractual Framework• Chapter 8 . . . . . . . . . . . Health, Safety, the Environment, Ethics
4. William L. Leffler, et al. Deepwater Petroleum Exploration and Production: A Nontechnical Guide (Tulsa, OK:PennWell, 2003).• Chapter 3 . . . . . . . . . . . Exploring the Deepwater• Chapter 4 . . . . . . . . . . . Drilling and Completing Wells• Chapter 6 . . . . . . . . . . . Fixed Structures• Chapter 7 . . . . . . . . . . . Floating Production Systems
5. Petroleum Reserves and Resources Definitions: http://www.spe.org/spe-app/spe/industry/reserves/index.htm.
2009 Energy Risk Professional Examination Study Guide
© 2009 Global Association of Risk Professionals. All Rights Reserved. 3
Readings for Crude Oil
1. FERC Oil Market Oversight: http://www.ferc.gov/market-oversight/othr-mkts/oil.asp.2. Norman J. Hyne. Nontechnical Guide to Petroleum Geology, Exploration, Drilling, and Production, 2nd Edition
(Tulsa, OK: PennWell, 2001).• Chapter 1 . . . . . . . . . . . Nature of Gas and Oil
- Petroleum; Chemical Composition; Crude Oil3. Tom James. Energy Markets: Price Risk Management and Trading (Singapore: John Wiley & Sons, 2008).
• Chapter 1 . . . . . . . . . . . Risk Management in Energy Markets• Chapter 15 . . . . . . . . . . Operational Risk and its Management
4. Thomas O. Miesner and William Leffler. Oil and Gas Pipelines: In Nontechnical Language (Tulsa, OK: PennWell,2006).• Chapter 1 . . . . . . . . . . . How Pipelines Differ• Chapter 7 . . . . . . . . . . . Offshore Pipelines• Chapter 10 . . . . . . . . . . Investment Decisions• Chapter 12 . . . . . . . . . . Engineering and Design
- StorageTar Sands1. Michael Toman, et al. “Unconventional Fossil-Based Fuels: Economic and Environmental Trade-Offs.” (Santa
Monica, CA: Rand, 2008). Available online: http://www.rand.org/pubs/technical_reports/TR580/.• Chapter 4 . . . . . . . . . . . Oil Sands and Synthetic Crude Oil
Readings for Refined Petroleum Products
1. James H. Gary, Glenn E. Handwerk and Mark. J Kaiser. Petroleum Refining: Technology and Economics,5th Edition (New York: CRC Press, 2007).• Chapter 1 . . . . . . . . . . . Introduction (thru 1.8)• Chapter 14.3 . . . . . . . . . Economics and Planning Applications
2. William L. Leffler. Petroleum Refining in Nontechnical Language, 3rd Edition (Tulsa, OK: PennWell, 2000).• Chapter 20 . . . . . . . . . . Simple and Complex Refineries
3. National Petrochemical and Refiners Association (NPRA): http://www.npradc.org/.
Readings for Natural Gas
1. Rebecca L. Busby. Natural Gas in Nontechnical Language (Tulsa, OK: PennWell, 1999).• Chapter 8 . . . . . . . . . . . Regulatory History of the Gas Industry
2. FERC Natural Gas Market Oversight: http://www.ferc.gov/market-oversight/mkt-gas/overview.asp.3. Arthur J. Kidnay and William R. Parrish. Fundamentals of Natural Gas Processing (Boca Raton, FL: Taylor
and Francis, 2006).• Chapter 12 . . . . . . . . . . Transportation and Storage
2009 Energy Risk Professional Examination Study Guide
4 © 2009 Global Association of Risk Professionals. All Rights Reserved.
Readings for Liquefied Natural Gas
1. FERC LNG Market Oversight: http://www.ferc.gov/market-oversight/othr-mkts/lng.asp.2. Michael D. Tusiani and Gordon Shearer. LNG: A Nontechnical Guide (Tulsa, OK: PennWell, 2007).
• Chapter 1 . . . . . . . . . . . The Liquefied Natural Gas Industry• Chapter 3 . . . . . . . . . . . The LNG Chain: The Project Nature of the LNG Business• Chapter 5 . . . . . . . . . . . The Liquefaction Plant• Chapter 6 . . . . . . . . . . . LNG Tankers• Chapter 7 . . . . . . . . . . . LNG Import Terminals• Chapter 9 . . . . . . . . . . . Orchestration and Financing of an LNG Project• Chapter 11 . . . . . . . . . . The Economics of an LNG Project
Readings for Coal
1. James T. Bartis, Frank A. Camm and David S. Ortiz. Producing Liquid Fuels from Coal: Prospects and Policy Issues(Santa Monica, CA: Rand, 2008). Available online: http://www.rand.org/pubs/monographs/MG754.• Chapter 2 . . . . . . . . . . . The Coal Resource Base• Chapter 3 . . . . . . . . . . . Coal-to-Liquids Technologies• Chapter 6 . . . . . . . . . . . Critical Policy Issues for Coal-to-Liquids Development• Appendix A . . . . . . . . . . Cost-Estimation Methodology and Assumptions
2. FERC Coal Market Oversight: http://www.ferc.gov/market-oversight/othr-mkts/coal.asp.3. James Speight. Handbook of Coal Analysis (Hoboken, NJ: John Wiley & Sons, 2005).
• Chapter 1 . . . . . . . . . . . Coal Analysis• Chapter 2 . . . . . . . . . . . Sampling and Sample Preparation
Readings for Electricity
1. Chris Harris. Electricity Markets: Pricing, Structures and Economics (West Sussex, England: John Wiley & Sons,2006).• Chapter 2 . . . . . . . . . . . Structure, Operation and Management of the Electricity Supply Chain• Chapter 6 . . . . . . . . . . . Power Capacity• Chapter 7 . . . . . . . . . . . Location
2. Sally Hunt. Making Competition Work in Electricity (John Wiley & Sons, Inc. New York, NY. 2002).• Chapter 2 . . . . . . . . . . . The Essential Aspects of Electricity• Chapter 7 . . . . . . . . . . . Trading Arrangements• Chapter 8 . . . . . . . . . . . Details of the Integrated Trading Model
3. Denise Warkentin-Glenn. Electric Power Industry: in Nontechnical Language, 2nd Edition (Tulsa, OK: PennWell,2006).• Chapter 1 . . . . . . . . . . . Power Generation• Chapter 2 . . . . . . . . . . . Power Transmission and Distribution• Chapter 4 . . . . . . . . . . . The Electric Industry as a Regulated Entity
2009 Energy Risk Professional Examination Study Guide
© 2009 Global Association of Risk Professionals. All Rights Reserved. 5
Readings for Alternative Energy
1. FERC Emissions Allowance Market Oversight: http://www.ferc.gov/market-oversight/othr-mkts/emiss-allow.asp.2. Fisher Investments. Fisher Investments on Energy (Hoboken, NJ: John Wiley & Sons, 2009).
• Chapter 6 . . . . . . . . . . . Alternative Energy3. Roy L. Nersesian. Energy for the 21st Century: A Comprehensive Guide to Conventional and Alternative Sources
(Armonk, NY: M.E. Sharpe, 2007).• Chapter 3 . . . . . . . . . . . Biomass• Chapter 8 . . . . . . . . . . . Nuclear and Hydropower• Chapter 9 . . . . . . . . . . . Sustainable Energy
4. United Nations Framework Convention on Climate Change. “Essential Background: The Convention and theProtocol.” (Kyoto Protocol). Available online: http://unfccc.int/essential_background/items/2877.php.
FINANCIAL TRADING INSTRUMENTS
• What Makes Energies Different• Spot Pricing• Forwards and Futures• Options• Swaps• Other Derivatives• Electricity Trading• Carbon Finance / Emissions Markets
Readings for Financial Trading Instruments
1. Markus Burger, Bernhard Graeber, and Gero Schindlmayr. Managing Energy Risk: An Integrated View on Powerand Other Energy Markets (West Sussex, England: John Wiley & Sons, 2007).• Chapter 2 . . . . . . . . . . . Energy Derivatives
2. Carol A. Dahl. International Energy Markets: Understanding Pricing, Policies and Profits (Tulsa, OK: PennWell,2004).• Chapter 15 . . . . . . . . . . Energy Futures and Options Markets for Managing Risks
3. Steven Errera and Stewart L. Brown. Fundamentals of Trading Energy Futures & Options, 2nd Edition (Tulsa, OK:PennWell, 2002).• Chapter 3 . . . . . . . . . . . Behavior of Commodity Futures Prices• Chapter 4 . . . . . . . . . . . Speculation and Spread Trading• Chapter 7 . . . . . . . . . . . Energy Options Strategies
4. Tom James. Energy Markets: Price Risk Management and Trading (Singapore: John Wiley & Sons, 2008).• Chapter 3 . . . . . . . . . . . Energy Futures Contracts
6 © 2009 Global Association of Risk Professionals. All Rights Reserved.
2009 Energy Risk Professional Examination Study Guide
5. Vincent Kaminski (ed). Managing Energy Price Risk (London: Risk Books, 2004).• Chapter 1 . . . . . . . . . . . Energy Swaps• Chapter 2 . . . . . . . . . . . Energy Options• Chapter 3 . . . . . . . . . . . Energy Exotic Options
6. Dragana Pilipovic. Energy Risk: Valuing and Managing Energy Derivatives, 2nd Edition (New York: McGraw Hill,2007).• Chapter 4 . . . . . . . . . . . Essential Statistical Tools• Chapter 5 . . . . . . . . . . . Spot Price Behavior• Chapter 6 . . . . . . . . . . . The Forward Price Curve
Electricity Trading1. Alexander Eydeland and Krzysztof Wolyniec. Energy and Power Risk Management: New Developments in
Modeling, Pricing, and Hedging (Hoboken, NJ: John Wiley & Sons, 2003).• Chapter 7 . . . . . . . . . . . Hybrid Process for Power Prices• Chapter 8 . . . . . . . . . . . Structured Products: Fuels and Other Commodities
2. Vincent Kaminski (ed). Energy Modelling: Advances in the Management of Uncertainty (London: Risk Books,2005).• Chapter 2 . . . . . . . . . . . Fundamentals of Electricity Derivatives
Carbon Finance / Emissions Market / Emission Trading1. Tom James and Peter Fusaro. Energy and Emissions Markets: Collision or Convergence? (Singapore. John Wiley
& Sons (Asia) Pte Ltd. 2006).• Chapter 3 . . . . . . . . . . . Green Trading Schemes• Chapter 6 . . . . . . . . . . . Overview of the Carbon Exchanges• Chapter 10 . . . . . . . . . . What Risk? An Introduction to Managing Risk• Chapter 11 . . . . . . . . . . Risk-Policy Guidelines
2. Sonia Labatt, Rodney R.White. Carbon Finance: The Financial Implications of Climate Change (Hoboken, NJ:John Wiley & Sons, Inc., 2007).• Chapter 6 . . . . . . . . . . . Emissions Trading in Theory and Practice
VALUATION AND STRUCTURING OF ENERGY TRANSACTIONS
• Volatility• Correlations• Option pricing models• Other modeling
Readings for Valuation and Structuring of Energy Transactions
1. Peter C. Beutel. Surviving Energy Prices (Tulsa, OK: PennWell, 2005).• Chapter 5 . . . . . . . . . . . Understanding Futures and Options
© 2009 Global Association of Risk Professionals. All Rights Reserved. 7
2009 Energy Risk Professional Examination Study Guide
2. Markus Burger, Bernhard Grae ber, and Gero Schindlmayr. Managing Energy Risk: An Integrated View on Powerand Other Energy Markets (West Sussex, England: John Wiley & Sons, 2007).• Chapter 4 . . . . . . . . . . . Fundamental Market Models
3. Les Clewlow and Chris Strickland. Energy Derivatives: Pricing and Risk Management (London: LacimaPublications, 2000).• Chapter 3 . . . . . . . . . . . Volatility Estimation in Energy Markets• Chapter 6 . . . . . . . . . . . Spot Price Models and Pricing Standard Instruments
4. Alexander Eydeland and Krzysztof Wolyniec. Energy and Power Risk Management: New Developments inModeling, Pricing, and Hedging (Hoboken, NJ: John Wiley & Sons, 2003).• Chapter 4 . . . . . . . . . . . Reduced-form Processes
5. Helyette Geman (ed). Risk Management in Commodity Markets: From Shipping to Agriculturals and Energy(West Sussex, England: John Wiley & Sons, 2008).• Chapter 2 . . . . . . . . . . . Forward Curve Modelling in Commodity Markets
6. Dragana Pilipovic. Energy Risk: Valuing and Managing Energy Derivatives, 2nd Edition (New York: McGraw Hill,2007).• Chapter 7 . . . . . . . . . . . Building Marked-to-Market Forward Price Curves: Implementing Forward Price Models• Chapter 8 . . . . . . . . . . . Volatilities• Chapter 9 . . . . . . . . . . . Overview of Option Pricing for Energies• Chapter 10 . . . . . . . . . . Option Valuation• Chapter 11 . . . . . . . . . . Valuing Energy Options
7. Platts. “The Increasing Divergence of WTI Pricing fromWorld Markets” (March 2009). Available online:http://www.platts.com/Content/Oil/Resources/Market%20Issues/wtipricing.pdf.
RISK MANAGEMENT IN FINANCIAL TRADING
• Risk Measurement and Monitoring• Value-At-Risk• Hedging• Trading Strategies• Credit Risk• Counter-Party Risk• Carbon Finance / Emissions Market
Readings for Risk Measurement, Monitoring, and Value-At-Risk
1. Peter C. Beutel. Surviving Energy Prices (Tulsa, OK: PennWell, 2005).• Chapter 3 . . . . . . . . . . . Different Kinds of Risk
2. Markus Burger, Bernhard Graeber, and Gero Schindlmayr. Managing Energy Risk: An Integrated View on Powerand Other Energy Markets (West Sussex, England: John Wiley & Sons, 2007).• Chapter 6.2 . . . . . . . . . . Value-at-Risk and Further Risk Measures
8 © 2009 Global Association of Risk Professionals. All Rights Reserved.
2009 Energy Risk Professional Examination Study Guide
3. Helyette Geman (ed). Risk Management in Commodity Markets: From Shipping to Agriculturals and Energy(West Sussex, England: John Wiley & Sons, 2008).• Chapter 15 . . . . . . . . . . Case Studies and Risk Management in Commodity Derivatives Trading
4. Tom James. Energy Markets: Price Risk Management and Trading (Singapore: John Wiley & Sons, 2008).• Chapter 10 . . . . . . . . . . Management Controls
5. Steve Leppard. Energy Risk Management: A Non-technical Introduction to Energy Derivatives (London: RiskBooks, 2005).• Chapter 8 . . . . . . . . . . . Wider Risk Management Questions
6. Alessandro Mauro. “Price Risk Management in the Energy Industry: The Value at Risk Approach,” Proceedings ofthe XXII Annual International Conference of the International Association for Energy Economics (June 9-12,1999): http://ssrn.com/abstract=1020917.
7. Dragana Pilipovic. Energy Risk: Valuing and Managing Energy Derivatives, 2nd Edition (New York: McGraw Hill,2007).• Chapter 2 . . . . . . . . . . . What Makes Energies So Different?
8. John Wengler. Managing Energy Risk: A Nontechnical Guide to Markets and Trading (Tulsa, OK: PennWell, 2001).• Chapter 6 . . . . . . . . . . . Energy Risk Boot Camp: “Must Know” Concepts for Managers and Directors
Readings for Hedging and Trading Strategies in Energy Products
1. Les Clewlow and Chris Strickland. Energy Derivatives: Pricing and Risk Management (London: LacimaPublications, 2000).• Chapter 9 . . . . . . . . . . . Risk Management of Energy Derivatives
2. Alexander Eydeland and Krzysztof Wolyniec. Energy and Power Risk Management: New Developments inModeling, Pricing, and Hedging (Hoboken, NJ: John Wiley & Sons, 2003).• Chapter 10 . . . . . . . . . . Risk Management
3. Tom James. Energy Markets: Price Risk Management and Trading (Singapore: John Wiley & Sons, 2008).• Chapter 6 . . . . . . . . . . . Options Trading and Hedging Application Strategies• Chapter 13 . . . . . . . . . . Energy-Market Hedging Scenarios
4. Steve Leppard. Energy Risk Management: A Non-technical Introduction to Energy Derivatives (London: RiskBooks, 2005).• Chapter 4 . . . . . . . . . . . Physical Transactions and Basic Hedging Instruments
5. Fletcher J. Sturm. Trading Natural Gas: A Nontechnical Guide (Tulsa, OK: PennWell, 1997).• Chapter 4 . . . . . . . . . . . Hedging and Trading Instruments
Readings for Credit and Counter-Party Risk
1. Markus Burger, Bernhard Graeber, and Gero Schindlmayr. Managing Energy Risk: An Integrated View on Powerand Other Energy Markets (West Sussex, England: John Wiley & Sons, 2007).• Chapter 6.3 . . . . . . . . . . Risk Management (Credit Risk)
© 2009 Global Association of Risk Professionals. All Rights Reserved. 9
2009 Energy Risk Professional Examination Study Guide
2. Peter C. Fusaro (ed). Energy Risk Management: Hedging Strategies and Instruments for the International EnergyMarkets (New York: McGraw Hill, 1998).• Chapter 12 . . . . . . . . . . Credit Issues and Counterparty Risk
3. Tom James. Energy Markets: Price Risk Management and Trading (Singapore: John Wiley & Sons, 2008).• Chapter 16 . . . . . . . . . . A Practical Guide to Credit Control and Risk-Mitigation Methods
4 . Vincent Kaminski (ed). Energy Modelling:Advances in the Management of Uncertainty (London: Risk Books, 2005).• Chapter 12 . . . . . . . . . . Credit Risk Management for the Energy Industry—Some Perspectives
FINANCIAL DISCLOSURE, ACCOUNTING AND COMPLIANCE IN THEENERGY INDUSTRY
• Financial Accounting Standards Board (FASB)• Sarbanes-Oxley Act of 2002• International Accounting Standards Board (IASB)• Securities and Exchange Commission (SEC)• Basel Committee on Banking Supervision Comment on Fair Value Measurements• Federal Energy Regulatory Commission (FERC)• North American Electric Reliability Corporation (NERC)• Commodities Future Trading Commission (CFTC)• Securities and Exchange Commission (SEC)• Financial Services Authority• Open Compliance and Ethics Group
Note on Financial Disclosure, Accounting and Compliance:
GARP recognizes that issues of financial disclosure, accounting, and compliance are critical to the daily life of an energy riskprofessional.While adherence to a regulatory body will be governed by one’s specific firm or geographic region, it is critical for anyglobally-minded energy risk professional to have a base level understanding of several of the larger regulators that will likely beencountered. However, as global energy markets continue to evolve, so do the standards of these globally-recognized regulators.As such, for the October 2009 ERP Examination, candidates may expect to be tested on changes occurring in the below mentionedgoverning bodies through June 1, 2009, the date of this study guide. Any changes made after this date will be picked up by the2010 ERP Study Guide to be issued in November 2009.
Candidates are expected to understand the objectives and general structure of each of the below mentioned regulators and generalapplication of the various regulations listed. Candidates are not expected to memorize specific details.
Readings for Financial Disclosure and Accounting
1. Tom James. Energy Markets: Price Risk Management and Trading (Singapore: John Wiley & Sons, 2008).• Chapter 17 . . . . . . . . . . Accounting for Energy Derivatives Trades
2. U.S. Federal Sentencing Guidelines, Chapter 8—Part B: Remedying Harm from Criminal Conduct, and EffectiveCompliance and Ethics Program. (November, 2004). http://www.ussc.gov/2004guid/8b2_1.htm.
10 © 2009 Global Association of Risk Professionals. All Rights Reserved.
2009 Energy Risk Professional Examination Study Guide
Basel Committee on Banking Supervision1. Basel Committee on Banking Supervision: Discussion paper—fair value measurements
http://www.bis.org/bcbs/commentletters/iasb20.pdf.
Financial Accounting Standards Board (FASB)1. Financial Accounting Standards Board: Determining Fair Value When the Volume and Level of Activity for the
Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly (PostedApril 9, 2009). http://www.fasb.org/pdf/fsp_fas157-4.pdf.
2. Financial Accounting Standards Board: Summary of Statement No. 133.http://www.fasb.org/st/summary/stsum133.shtml.
3. Financial Accounting Standards Board: Summary of Statement No. 157.http://www.fasb.org/st/summary/stsum157.shtml.
4. Financial Accounting Standards Board: Summary of Statement No. 161.http://www.fasb.org/news/nr031908fas161.shtml.
International Accounting Standards Board (IASB)1. International Accounting Standards Board: Fair Value Measurement Project
http://www.iasb.org/Current+Projects/IASB+Projects/Fair+Value+Measurement/Fair+Value+Measurement.htm.2. International Accounting Standards Board: IASB Work Plan—projected timetable as of April 30, 2009:
http://www.iasb.org/Current+Projects/IASB+Projects/IASB+Work+Plan.htm.
Sarbanes-Oxley Act of 20021. Sarbanes-Oxley Act of 2002: SEC. 302. Corporate Responsibility for Financial Reports.
http://www.sox-online.com/act_section_302.html.2. Sarbanes-Oxley Act of 2002: SEC. 401. Disclosure in Periodic Reports.
http://www.sox-online.com/soxact.html#sec401.3. Sarbanes-Oxley Act of 2002: SEC. 404. Management Assessment of Internal Controls.
http://www.sox-online.com/soxact.html#sec404.4. Sarbanes-Oxley Act of 2002: SEC. 409. Criminal Penalties for Altering Documents
http://www.sox-online.com/soxact.html#sec409.5. Sarbanes-Oxley Act of 2002: SEC. 802. Real Time Issuer Disclosure.
http://www.sox-online.com/soxact.html#sec802.
Securities and Exchange Commission (SEC)1. Securities and Exchange Commission: Selected Staff Accounting Bulletins.
http://www.sec.gov/interps/account.shtml.
© 2009 Global Association of Risk Professionals. All Rights Reserved. 11
2009 Energy Risk Professional Examination Study Guide
Readings for Compliance
1. Peter Y. Malyshev, et al.: FTC Joins Other Agencies in Policing Oil Industry “Market Manipulation” and“False Reporting.” http://www.mwe.com/info/news/wp0208a.pdf.
Commodities Future Trading Commission (CFTC)1. Commodity Exchange Act: http://www.cftc.gov/lawandregulation/index.htm.2. Markets, Clearing Organizations, and Intermediaries: http://www.cftc.gov/industryoversight/index.htm.
Commodity Futures Exemption Requirements1. CME Group. Online Rulebook (December, 2008).
• Chapter 4 . . . . . . . . . . . Section 443: Position Limit Violations: http://www.cmegroup.com/rulebook/CBOT/I/4/4.pdf.2. IntercontinentalExchange (Europe). Regulations (2009).
• Section P . . . . . . . . . . . . Position Reporting, Accountability and Limits:https://www.theice.com/futures_europe_regulations.jhtml.
3. NYMEX. Online Rulebook (2008).• Chapter 9A . . . . . . . . . . Position Rules: http://www.nymex.com/rule_main.aspx?pg=13.
Federal Energy Regulatory Commission (FERC)1. Energy Policy Act (EPAct) of 2005: http://www.ferc.gov/legal/fed-sta/ene-pol-act.asp.2. FERC & EPAct 2005—Overview: http://www.ferc.gov/legal/fed-sta/ferc-and-epact-2005.pdf; Details available in
LNG, electric, gas, hydropower, and more: http://www.ferc.gov/legal/fed-sta/ene-pol-act.asp.3. FERC Federal Order 670—Prohibition of Energy Market Manipulation (January 19, 2006):
http://elibrary.ferc.gov/idmws/common/opennat.asp?fileID=10932497.4. FERC Prohibition of Energy Market Manipulation (updated January 15, 2009):
http://www.ferc.gov/enforcement/market-manipulation.asp.5. FERC Standards of Conduct for Transmission Providers Order No. 717:
http://www.ferc.gov/whats-new/comm-meet/2008/101608/M-1.pdf.6. FERC Strategic Plan, FY 2006-FY 2011: http://www.ferc.gov/about/strat-docs/strat-plan.asp.7. FERC Top Priorities, FY 2006-FY2011: http://www.ferc.gov/about/top-priorities.asp.
Financial Services Authority (FSA)1. FSA Handbook. http://fsahandbook.info/FSA/html/handbook.
North American Electric Reliability Corporation (NERC)1. NERC: About the Compliance and Enforcement Program.
http://www.nerc.com/fileUploads/File/Compliance/About-Compliance(1).pdf.
Open Compliance and Ethics Group (OCEG)1. Measurement and Metric Guide: http://www.oceg.org/view/MMG.
Securities and Exchange Commission (SEC)1. Modernization of Oil and Gas Reporting: http://www.sec.gov/rules/final/2008/33-8995.pdf.
12 © 2009 Global Association of Risk Professionals. All Rights Reserved.
2009 Energy Risk Professional Examination Study Guide
Notes
Energy Oversight Committee Members
The following individuals were responsible for the oversight of the development of the 2009 ERP Study Guide:
• Ken Abbott . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Managing Director, Morgan Stanley & Company
• Richard Apostolik . . . . . . . . . . . . . . . . . . . . . . . . . . . . President and CEO, Global Association of Risk Professionals
• Mark Galicia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Compliance Manager, BP North America, Inc.
• Gordon E. Goodman . . . . . . . . . . . . . . . . . . . . . . . . . . Trading Control Officer, Occidental Petroleum Corporation
• James Brown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Managing Director, Morgan Stanley & Company
• Mark Jenner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Director, Credit Risk, BG Group
• Jeff Jewell . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chief Risk Officer, DTE Energy
• Glenn Labhart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Partner, Labhart Risk Advisors, Inc.
• Spyros Maragos . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Manager, Quantitative Analysis, Chevron
• Mark D. May . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Manager, Regional Risk Supply & Trading, Americas, ConocoPhilips
• Jeff Parke . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Senior Director, Risk Management, Koch Industries, Inc.
• Jonathan C. Stein . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chief Risk Officer, Vice President, Hess Corporation
• Andrew D. Sunderman . . . . . . . . . . . . . . . . . . . . . . . . . Managing Director, JP Morgan
• Glen Swindle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Managing Director, Energy Trade & Marketing, Credit Suisse
• JohnWengler . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chief Risk Officer, Entergy Services, Inc.
Creating a culture ofrisk awareness.TM
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