BUSINESS RISK VALUATION
The core strength of Labhart Risk Advisors is defining the client's business risk management framework organized around the strategic objectives, risks, controls, and alignment. These principles form a conceptual framework for identifying, understanding, and defining risks to set appropriate risk tolerances.
Labhart Risk Advisors greatest value proposition to clients is the actual hands on experience in business risk management, compliance, and accounting from all major trading systems and platforms. The experience factor of Labhart Risk Advisors plays a critical vital role for clients who desire a front, middle, and back office approach to risk.
Labhart Risk Advisors risk management approach is based on the client needs and ranges from real option valuation involving electricity heat rate options to clients desiring to initiate hedges to ensure adequate cash flow management of the strategic plan. The key value from Labhart Risk Advisors is the understanding of all aspects of the business risks.
Whether you are a firm looking to value the assets of a potential client, or an investor trying to assess the value of a prospective acquisition, Labhart Risk Advisors brings its quantitative expertise and practical industry experience to bear on valuation services for our clients. The firm utilizes an enterprise risk-based approach to evaluate a client's specific issue by analyzing and auditing the business areas for the review of:
Risk Assessment and Aggregation:
- Systems and process used by Information Technology departments supporting the company's trading or hedging activity;
- Market, credit, legal, systems and operational risk exposure.
Risk Management & Optimization:
- Procedures for monitoring and reporting of positions, margins, and predetermined loss limits;
- Trading and asset-based hedging programs;
- Long-term deal structure modeling and analysis;
- Internal controls and compliance monitoring.
CONTRACT ANALYSIS & REVIEW
Labhart Risk Advisors has developed a process to assess the potential exposure of existing contracts by developing scenarios which factor in cross-default, legal entity, bankruptcy forward and outstanding collateral exposure. The evaluation process consolidates all contracts into a matrix that will identify:
- Default provisions
- Remedies to buyer or seller
- Notification requirements
- Specific damages
- Collateral requirements
The firm also has significant experience in contract termination and liquidation, and provision of adequate assurance pursuant to various commodities trading agreements, including:
- The Western Systems Power Pool Agreement ("WSPPA")
- The Edison Electric Institute Master Power Purchase & Sale Agreement ("EEI")
- International Swaps and Derivatives Association, Inc. Master Agreement ("ISDA")
- National Energy Standards Board (“NAESB”)
In addition, Labhart Risk Advisors has experience analyzing and drafting agreements involving domestic and international crude oil and refined products in such nations as Qatar , Saudi Arabia , Gabon , Columbia , UK , Venezuela , Trinidad and Mexico .
Labhart Risk Advisors has extensive experience in the areas of trading investigations, litigation support, and expert testimony. Specializing in asset valuation, bankruptcy, breach of contract and damage assessment, we have worked with energy marketing firms, regulated utilities, state and federal agencies, end-user groups and law firms. Critical to our success has been our exposure to and experience with key government agencies such as:
- U.S. Department of JusticeFederal
- Energy Regulatory Commission (FERC)
- Federal Bureau of Investigation (FBI)
- Commodity Futures Trading Commission (CFTC)
- U.S. Securities and Exchange Commission (SEC)
- United States Postal Service (USPS)