Determine value at risk

Trigger: A scheduled daily trading close or a material shift in energy market conditions prompts the risk assessment.

1. Aggregate energy portfolio positions and open market contracts
2. Collect historical volatility data for fuel and electricity prices
3. Execute statistical risk models and Monte Carlo simulations
4. Compute Value at Risk at the target confidence interval
5. Validate outputs against historical backtesting results
6. Distribute daily risk exposure reports to stakeholders

Outcome: A quantified metric of maximum expected financial loss is generated and distributed to the risk management committee.