ERP2018_SGChanges

2018ERP STUDY GUIDE CHANGES ® ENERGY RISK PROFESSIONAL garp.org/ERP and all the new required readings required for 2018. garp. senior practitioners and academics with practical energy market experience and risk management expertise. Certified ERPs can alumni helps to ensure that the ERP Exam and exam apply knowledge about the production. ERP EXAM PART I | 80 QUESTIONS } Crude Oil and Refined Product Markets } Natural Gas and Coal Markets } Electricity Markets and Power Generation ERP EXAM PART II | 60 QUESTIONS } Financially-Traded Energy Products } Risk Assessment and Energy Price Modeling } Risk Management Tools • Market Risk Valuation and Management • Credit and Counterparty Risk Assessment • Operational Risk and Enterprise Risk Management © 2018 Global Association of Risk Professionals. transportation. 2018 Energy Risk Professional (ERP®) Exam Study Guide Changes Energy Risk Professional (ERP®) Study Guide Changes ENERGY RISK PROFESSIONAL (ERP) PROGRAM Each year. assessment of energy market data and price modeling. curriculum remain consistent with current industry and storage of physical energy commodities. 2018 ERP EXAM STUDY GUIDE CHANGES and identification. and practical application of energy derivatives. The exam topics and required readings listed in the 2018 ERP Study Guide and 2018 Learning Objectives (LOBs) are updated annually in conjunction with the EOC to ensure the ERP Exam remains a timely and accurate assessment of the knowledge and skills required of energy market and risk professionals. Returning ERP CURRICULUM AND EXAMINATION 2017 ERP candidates should review the curriculum Development of the ERP Exam curriculum is guided by changes before they begin to prepare for the 2018 GARP’s Energy Oversight Committee (EOC). the readings deleted from the 2017 curriculum. Certified ERPs from a variety of disciplines The Global Association of Risk Professionals (GARP) and geographies are invited by GARP to participate created the ERP Certification Program for energy market in the exam development process. GARP’s dual professionals seeking a designation that assesses and collaboration with EOC members and its Certified ERP validates their knowledge and skills. and management of The Study Guide Changes document summarizes all of risk in the energy industry. measurement.org/erp 1 . structure practice. a panel of examinations. garp. (New York. (New York.org/erp 2 .) Readings moved to ERP Part II Examination 1. Mohamed Dafir and Vishnun N. 2014). • Chapter 1: Energy Commodities and Price Formation *This reading is available for free on the GARP website. Fuel Hedging and Risk Management. 2016). The Essentials of Risk Management.1: Typology of Risk Exposures 3. Code of Conduct. Michael Crouhy. Glen Swindle. NJ: John Wiley & Sons. 2018 Energy Risk Professional (ERP®) Exam Study Guide Changes ERP Exam Part I For 2018. S. (Hoboken. Valuation and Risk Management in Energy Markets. NY: McGraw-Hill Education. 2nd Edition.* Deletions 1. NY: Cambridge Press. • Chapter 1: Context 2. The eight questions from this section have been reallocated to the Crude Oil and Electricity sections (four questions per section. © 2018 Global Association of Risk Professionals. Gajjala. Global Association of Risk Professionals (GARP). • Chapter 1: Risk Management: A Helicopter View • Appendix 1. the Introduction section of the ERP Examination has been eliminated. 2014). Incoterms 2010.org/erp 3 . Brent Prices: Impact of PRA Methodology on Price Formation. Transporting Crude Oil by Rail in Canada. Canadian Association of Petroleum Producers (March 2014). Deborah Gordon.* Deletions: 1.* 3.* 2. 6th Edition. © 2018 Global Association of Risk Professionals. Oxford Energy (March 2012).* * This reading is available for free on the GARP website. 2018 Energy Risk Professional (ERP®) Exam Study Guide Changes Crude Oil Markets and Refined Products ERP EXAM PART I PART I EXAM WEIGHT | 40% Additions: 1. Livingston International. • Chapter 15: Conveyances (pp. Fundamentals of Oil & Gas Accounting. Christophe Barret. Understanding Unconventional Oil. garp. Australian Customs and Border Protection Service. Charlotte Wright. (Tulsa.* 4.582 only) • Chapter 17: Reserve Valuation • Chapter 18: Accounting for International Petroleum Operations (same content as Chapter 15 from 5th Edition) 2. A Practical Guide to Incoterms 2010. OK: PennWell 2017). The Carnegie Papers (May 2012). 557 . Gas Storage Industry Primer.* • Chapter 2: The Role of Gas Storage Deletions: 1. 2018 Energy Risk Professional (ERP®) Exam Study Guide Changes Natural Gas and Coal Markets ERP EXAM PART I PART I EXAM WEIGHT | 25% Additions: 1.* * This reading is available for free on the GARP website. Oxford Energy: US NGL Production and Steam Cracker Substitution (September 2014). Ministry of Economy. © 2018 Global Association of Risk Professionals. Anthony J. Gas Storage in Great Britain (January 2013).* 3. Melling. Trade and Industry (METI). • Chapter 6: Refineries and the Unnatural Gas Liquids • Chapter 7: Logistics • Chapter 8: NGL Markets . Strategy for LNG Market Development: Creating a Flexible LNG Market and Developing an LNG Trading Hub in Japan (May 2016). Sections 1 to 5. and 8 to 10 only. (Carnegie Endowment.* 5. Natural Gas Pricing and its Future: Europe as the Battleground.* 4. (Tulsa. OK: PennWell.org/erp 4 .* 2.Fuels 3. Oxford Energy.Petrochemicals • Chapter 9: NGL Markets . William Leffler. International Gas Union. Niska (April 2010).* • Chapter 2: The Dynamics Between Oil-Indexed and Spot Prices 2. Wholesale Gas Price Formation: A Global View of Price Drivers and Regional Trends (June 2011). Natural Gas Liquids: A Non-Technical Guide. 2014). Developments in Thermal Coal Markets (June 2015). Reserve Bank of Australia. garp. 2010). The Future of Electricity New Technologies Transforming the Grid Edge (March 2017). Darryl R. Barry Murray. Power Markets and Economics: Energy Costs. Trading. • Chapter 22: Analytical Tools • Chapter 23: Electricity Market Transactions 4. Biggar and Mohammad Reza Hesamzadeh. NJ: John Wiley & Sons. Chapter 1: Industry Overview • Chapter 2: Load • Chapter 3: Generation • Chapter 4: Transmission • Chapter 5: Economic Optimization • Chapter 6: Bilateral Trading • Chapter 7: Centralized Markets • Chapter 8: Other Electricity Markets • Chapter 9: Emissions 2. • Chapter 5: Emissions Markets and Products * This reading is available for free on the GARP website. 7. • Chapter 2: Introduction to Electric Power Systems • Chapter 3: Electricity Industry Market Structure and Competition 2. Vincent Kaminski. UK: John Wiley & Sons.14 only) • Chapter 7: Investing in Generation 3. The Economics of Electricity Markets. (2015). (West Sussex. garp. editors. Handbook of Multi-Commodity Markets and Products: Structuring. Emissions Trading Basic Principles and Experiences in Europe and Germany (November 2016). Overview of New England’s Wholesale Electricity Markets and Market Oversight (May 2014).1.† 1. 2017). World Economic Forum. UK: John Wiley & Sons.* 5. India’s Electricity Sector Transformation. • Chapter 11: Ancillary Service Markets 6. 2015). Leibniz Information Center for Economics. (Hoboken. Tim Buckley and Jai Sharda. Fundamentals of Power System Economics.org/erp 5 . © 2018 Global Association of Risk Professionals. ISO New England. The Future of the European Power Market. Deletions: 1. 2004). NJ: John Wiley & Sons. Trading and Risk Management. German Federal Ministry for the Environment. Parsons. 8. UK: Risk Books. Mark Cummins. Inquiries concerning reproduction of this section should be made to GARP. (West Sussex. 2009). UK: John Wiley & Sons. • Chapter 3: Markets for Electrical Energy • Chapter 4: Participating in Markets for Electrical Energy (sections 4 to 4. Energy Markets. John E. (West Sussex. 2013). Introduction to Electricity Markets. Andrea Roncoroni. Gianluca Fusai. 2018 Energy Risk Professional (ERP®) Exam Study Guide Changes Electricity Markets and Power Generation ERP EXAM PART I PART I EXAM WEIGHT | 35% Additions: 1.3. (London. 2017 Energy Risk Professional (ERP) Exam Part I (Hoboken. Emissions. 3. † All rights reserved. Institute for Energy Economics and Financial Analysis (August 2015) (sections 1-6 only). 2014). Daniel Kirschen and Goran Strbac. Financial Activities and Treasury Affiliates. Dodd-Frank’s Impact on Financial Entities. (July 2013). Gordon Goodman. (October 2013).* * This reading is available for free on the GARP website.org/erp 6 . © 2018 Global Association of Risk Professionals. garp.* 2. Swaps: Dodd-Frank Memories. 2018 Energy Risk Professional (ERP®) Exam Study Guide Changes Financially-Traded Energy Products ERP EXAM PART II PART II EXAM WEIGHT | 30% Deletions: 1. Gordon Goodman. NJ: John Wiley & Sons. (Hoboken.org/erp 7 . Managing Energy Price Risk. 2016). • Chapter 10: Linear Regression Analysis Deletions: 2. garp. 2018 Energy Risk Professional (ERP®) Exam Study Guide Changes Risk Assessment and Energy Price Modeling ERP EXAM PART II PART II EXAM WEIGHT | 20% Additions: 1. Inc. UK: Risk Books.. • Chapter 8: Managing Oil Price Risk: Dealing with the Time-Varying Relationship between the Price of Oil and Fundamentals © 2018 Global Association of Risk Professionals. Mathematics and Statistics for Financial Risk Management. Vincent Kaminski. Michael Miller. 2014). 4th Edition (London. 3 only) • Chapter 5: Netting. Credit Spreads and Credit Derivatives (sections 10. Code of Conduct.2.10. (Hoboken.4 only) • Chapter 10: Quantifying Credit Exposure (sections 10.1 to 17.* 3. Collateral and Capital. Counterparty Credit Risk and Credit Value Adjustment: A Continuing Challenge for Global Financial Markets.org/erp 8 . (Management Solutions. World Energy Perspectives. 2nd Edition. Credit Spreads and Funding Costs (sections 12. NJ: John Wiley & Sons. 2012). Counterparty Credit Risk and Credit Value Adjustment: A Continuing Challenge for Global Financial Markets.1 to 7.4. 2. Compression. 2018 Energy Risk Professional (ERP®) Exam Study Guide Changes Risk Management Tools ERP EXAM PART II PART II EXAM WEIGHT | 50% Additions: 1.1 to 4. and Related Aspects • Chapter 6: Collateral (sections 6. Implementing Enterprise Risk Management – From Methods to Applications. 2nd Edition. • Chapter 8: Identifying and Communicating Key Risk Indicators * This reading is available for free on the GARP website.1 only) 2.5 only) • Chapter 14: Credit Value Adjustment (sections 14. (Hoboken.1 to 14. Resets and Termination Features • Chapter 5: Collateral • Chapter 8: Credit Exposure (sections 8.2. The Road to Resilience: Managing Cyber Risks (2016). John Fraser and Betty Simkins. © 2018 Global Association of Risk Professionals.1 to 12. 2014).1 . Funding. World Energy Council. • Chapter 4: Counterparty Risk (sections 4. Jon Gregory. garp. James Lam. 2010).* Deletions: 1. • Chapter 7: The ERM Framework • Chapter 13: Risk Control Self-Assessments • Chapter 15: Strategic Risk Management • Chapter 17: Integration of KPIs and KRIs 3.1 to 10. Close-Out. (Hoboken. NJ: John Wiley & Sons. Global Association of Risk Professionals (GARP). 2017).6 only) • Chapter 7: Credit Exposure and Funding (sections 7.4 only) NOTE: The above chapters replace various chapters from Jon Gregory.2 only) • Chapter 12: Credit Value Adjustment (section 12. The xVA Challenge: Counterparty Credit Risk.1 to 8. 3rd Edition.5 only) • Chapter 12: Default Probabilities. 2015). NJ: John Wiley & Sons. (Hoboken. NJ: John Wiley & Sons.2. Jon Gregory. Enterprise Risk Management: Today’s Leading Research and Best Practices for Tomorrow’s Executives.1 to 6. 4. Operational Risk Management in the Energy Industry. • Chapter 3: Defining Counterparty Credit Risk • Chapter 4: Netting.8 only) • Chapter 17: Wrong-Way Risk (sections 17.4 only) • Chapter 10: Default Probability. Creating a culture of risk awareness ® garp.org The Global Association of Risk Professionals (GARP) is the leading association dedicated to the education and certification of risk professionals. media. and events.17) .01. All rights reserved. GARP’s mission is to elevate the practice of risk management at all levels. © 2018 Global Association of Risk Professionals. training. setting the industry standard through education. (11. connecting members in more than 190 countries and territories.