Operational risk for the energy business is of great importance for the industry and for society as a whole. This book by Kholodnyi and Burchett is the first publication that analyzes various new quantitative methods for measuring and managing operational risk in the energy sector, based on mathematics from quantitative finance and complexity theory.
Operational Risk in the Energy Markets also contains findings on managing the risk of infinite incidents such as nuclear energy and petrochemical accidents, as well as identifying system instabilities and managing cascading errors. Numerous case studies in energy operational risk are presented and analyzed, and future trends in risk management are discussed. The book is highly readable for both risk professionals and business managers, and uses appendices for the supporting, peer-reviewed mathematical analysis and for examples of practical applications in energy for the new risk management principles outlined in the book.
Risk Books in London will publish the Kholodnyi and Burchett book later this year.
About the authors: Dr. Valery A. Kholodnyi is a well-known mathematician and developer of the widely used Kholodnyi model for predicting price spikes. Dr. Kholodnyi has a Ph.D. and M.S. in applied mathematics from the Moscow Institute of Electronics and Mathematics. Shannon Burchett is CEO of Risk Limited Corp in Dallas and is an expert in risk management and strategy. Burchett has a BS in electrical engineering and a MBA in finance from Tulane University. Both authors are recognized pioneers in risk management and finance, whose work and research findings in these areas have been widely published.