Earnings at Risk, Cash Flow at Risk and Budget at Risk

[shoot]

Has any one developed these measurements/methodologies in practice? I tried @Risk to develop a template but I see a lot of holes that need to be filled. If you have some hands-on experiences with these measurements, especially in the energy industry, could you share insights on:
- qualifications needed (e.g., PhD level math?)
- how practicable these tools were for your corporate or clients
- useful trainings offered on this topic, trainings that provide tools as opposed to theory or concept

Thanks!

 

[Davey]

Not too sure on the energy side. I work on it with banks, where dynamic EaR models measure and estimate margin volatility, and it's more a matter of understanding convexity estimates and repricing characteristics. The rest is just programming the model.

Unless you're using a very rich medley of off balance sheet positions, it shouldn't require a phd or a physics degree to construct a useful EaR estimate.