Performance Risk Management


For over 10 years R^2 has built a reputation for its expertise as an independent, full service, hedge advisor. Our patented analytical process, the Performance Risk Management System (US Patent #7,822,670 B2), is unique in its ability to quantify price risk by commodity class and identify the impact of hedge opportunities. This fully integrated risk management solution helps reduce uncertainty and quantifies the cost/benefit of hedging.


Our enterprise specific risk assessments are delivered in clear budgetary terms designed to strengthen your organization’s decision process and provide a springboard for accelerating growth. More than 60 organizations trust R^2 to track their hedge portfolios and provide documentation and reports covering more than 650 million Barrels of Oil Equivalent (BOE)

Systems - R^2 utilizes SunGard's Kiodex Risk Workbench, a commodities risk management solution fully integrated with SunGard's Kiodex Global Market Data solution. It streamlines deal capture, proprietary valuation models, risk reports and independent market data to help better manage risk.


The valuation models capture the dynamics of the commodity markets and view risk from multiple perspectives. With management reporting, documentation and at-risk reporting, R^2 provides the information organizations need to operate an effective risk management program.


Data - The use of independent market data is a cornerstone of effective risk management. R^2 data includes forward curves, volatility surfaces, and correlation term structures from the crude oil, refined petroleum product, natural gas, power, base and precious metal, softs/agricultural, freight/maritime, pulp and paper, coal, weather, petrochemical, emissions, and currency markets. More than 800 forward curves, volatility surfaces and correlation term structures are generated daily and range in duration from one to seven years.


Security - R^2 takes data security seriously. R^2 systems are cloud-based and hosted at secure data centers in facilities that are protected from the elements with redundant systems in separate locations.