Over a 6 month period, ESP Consulting supported Alpiq on the implementation and detailed design of a new business model. We supported the client in the design and implementation of methodologies, business rules, and processes, as well as in the drafting of accompanying documentation and the revision of group risk policies. Working closely with the client team, our work particularly focussed on:
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Design of new book structures and accompanying inter-book transfer rules to support operations, risk control and reporting under the new business model;
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Implementation of an integrated budget and performance reporting framework including new methodologies for budgeting the energy gross margin across the business as well as accompanying performance KPIs;
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Revision of the existing group risk policy as well as supporting policies for market and credit risk management to reflect the new business model;
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Development of new risk policy for management of liquidity risks arising under margining terms; and
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Documentation of the new business model detailing key business model principles, organisational roles and responsibilities, key business processes, book structure, budgeting principles, and performance reporting.
The business model and revised risk policies were subsequently approved by the Executive Board.