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Energy Risk Manager

Plano, Texas, 75025, United States
May 23, 2010

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Andrew Hill

***** ****** ****

Plano, TX *****



 A proven record of accomplishment based on sound economics and the overriding principle of striving for increased efficiency without sacrificing quality.

 Dedicated to the improved understanding of risk measurement and risk management with a practical approach to problem solving.

 An overall philosophy of based on profitability, product quality, and customer satisfaction.

 Increased profitability for trading activities based on providing better allocation of risk capital on a daily basis.

 Reduced delivery costs of project by taking a contrarian and alternative approach to consulting and project management.

 Able to take a concept of integrated risk management and finalize this into systems and improved processes.


Facilitek Services (Energy Software Consultants), Houston, TX June 2008-Present

 Successfully implemented ETRM software for clients managing Power, Coal, Natural Gas, Natural Gas Storage, FTRs, and Emissions credits.

 As part of a small team, provided new solutions for credit risk management and FAS 157 reporting in compliance with Sarbanes-Oxley.

Allegro Development, Houston, TX & Dallas, TX March 2007 – June 2008

 Taught risk management to new consultants with specific applications of how Allegro software can be used to provide risk management information to customers.

 With a development team made improvements in the statistical calculations of the existing software for more effective VAR measurement.

 Advised customers on more effective risk measurement and risk management techniques for market risk of ethanol, coal, crude oil, refined products, natural gas, and corn. Focused on liquidity constraints, tail analysis, VAR trending, and backtesting

TCF Limited Partnership/HTCV, Inc., Cary, NC & Houston, TX May2000 - February 2007

Director of Risk Economics/Company Founder

 Used my prior background to found a consulting firm based on the principles of honesty, integrity, providing energy customers with expertise in risk measurement and proven solutions for more effective risk management at a fair price.

 Advised numerous companies in risk management strategies and tactics related to Natural Gas, Power, Crude, Refined Products, NGLs, Interest rates and Foreign exchange risk. These risks included market, credit, compliance and operational risks.

 Formulated a unique solution for hydro customers in the Pacific Northwest that enabled them to increase profitability and plant efficiency by 20% while extending plant and equipment life.

 Led a smaller, more experienced team of risk and IT professionals which provided more robust solutions for customers while greatly reducing expenses associated with larger, less experienced teams provided by most consulting firms.

 As the team lead, provided successful implantations of packaged software and custom software for several large and medium energy companies with all commodities.

 Directly responsible for completion of these projects that measured Market and Credit Risk. Market Risk was quantified by measurement of Value-at-Risk, Cash Flow at Risk, Risk Adjusted Return on Capital, Positions, and Mark-to-Market. Credit Risk measurements included Potential Exposure, Current Exposure and CFAR (Cash Flow at Risk).

 Reported to senior and mid-level executives on project status, timeline management, personnel, and costs. Typical executives included President of Trading Division, Chief Risk Officer, Chief Financial Officer, Senior Trading and Marketing Risk Managers, Traders, Risk Directors.

 Clients included TXU, Duke Energy, Dominion Resources, ConocoPhillips, TransAlta, BP, Tacoma Power, Wisconsin Public Service, Consumers Energy, AEP.

Williams Energy Marketing and Trading, Tulsa, OK May 1997 - May 2000

Manager of Risk Systems Projects/Manager of Quantitative Analysis

 Held complete responsibility for calculation of risk measurements and the communication of these numbers to the Corporate Chief Risk Officer as well as all appropriate trading personnel. Risk measurements included VAR, CFAR, RAROC (dynamic) calculated with MATLAB and SAS.

 Led a team of quantitative analysts providing effective risk measurement to all traders. This team effectively evaluated all new structured deals and made recommendations to officers on the quality of transactions. Estimated to have saved the company over $75MM annually.

 Communicated with all traders on risk limits and effective use of risk capital on a daily basis. By using more precise and relevant risk measures, traders were able to better allocate capital into profitable strategies.

 Able to reduce staff size by 30% while increasing information flow by 60% by improving communication and staff quality.

 Conducted a detailed study of software systems for trading, accounting, marketing, risk measurement, and regulatory compliance. As a result, the decision was made to integrate seven different trading systems and build new risk measurement systems to take advantage of synergies within the company trading activities. Proper and managed use of more robust systems provided the ability to grow the trading activities by fourfold with only a 10% increase in personnel.

 Responsible for complete overhaul of all trading floor systems. Began with a zero budget and was able to procure $32MM in budget to integrate and implement software and systems to improve the speed and reliability of position management, risk management, and credit management. Reported to the CEO and CFO on a monthly basis. Reported to the President of the division and the heads of all trading desks on a weekly basis. Daily interaction with traders, risk manager, accountants, IT managers, systems analysts, pricing analysts.

Manager of Quantitative Analysis

 As team leader, responsible for analysis and verification of all models related to structured products and deals of all energy commodities to include Crude and Refined Products, Natural Gas, Power, NGLs, Ethanol, and Corn.

 Developed quantitative analysis methods using MATLAB for measuring risk of energy trades and portfolios for all energy commodities. These methods and the resulting information were used daily to provide a more accurate risk picture for traders and managers.

 Managed hedging strategies for Natural Gas pipelines and storage, NGL plants, blending facilities and crude refineries. These strategies resulted in approximately $40MM per year in savings and profits for the company.

SPR Inc., Chicago, IL 1996 - 1997

Economics and Systems Analyst

 Remodeled a credit card system for a retail refined products company resulting in annual savings of $9MM

 Assisted teams with data mining ideas and quantitative ideas related to commodities management and credit management.

 Designed system flow processes for fixed income securities trading for an insurance company. With more efficient processes, this company was able to save 15% off the cost of trading these securities.

United States Army, Ft. Devens, MA 1983 - 1985


 Army Achievement Medal

 Honorable Discharge


Postgraduate Fellowship, 1995 - 1996

University of Alabama, Tuscaloosa, AL

 Whitman Postgraduate Fellowship in Finance/Economics/Statistics.

 Studied under Dr. Frank Page and Dr. Robert Brooks.

 Working Papers:

 "Risk Measurement Statistics: A Survey"

 "Pari-Mutuel Games and Risk Outcomes"

Masters of Business Administration, 1994 - 1995

University of Southern Mississippi, Hattiesburg, MS

 Concentration: Finance and Statistics

 Distinguished Honor Graduate

 Studied under Dr. James T. Lindley

 Working Papers:

 "Banking Deregulation and Industry Consolidation: A Predictive Model"

 "Discounting Commodities Exports to Developing Nations"

 "Quality Control and Improvement with Compensation Factors"

Bachelors of Science – Accounting, 1985

Lander University, Greenwood, SC


 SAS Programming, SAS Macro including the covar macro, SAS Stat, SAS Risk Dimensions, Base SAS

 SQL, SQL Server

 Crystal Reports, Business Objects


 C#, minimal C++

 IdeaBlade

 Alpha Five Development Tools


 “Does VAR Matter?”

 “Tail Measurement Outcomes”

 “Reducing VAR Assumptions for More Effective Risk Measurement”

 “Five Common Mistakes of Quantitative Analysts When Calculating Risk Measurements”

 “Liquidity Propositions”

 “Liquidity, Tails, and Credit”

 “Parameter Estimations Using Non-Normal Distributions”

 “Remodeling Black-Scholes for Energy Use”

 “Team Structure and Project Efficiency”

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