ENERGY RISK PROFESSIONAL

2019

ERP ®

Study Guide Changes

 2019 Energy Risk Professional (ERP®) Study Guide Changes

ERP EXAM
PART I

© 2018 Global Association of Risk Professionals garp.org/erp 2

 2019 Energy Risk Professional (ERP®) Study Guide Changes

Crude Oil Markets and Refined Products

ERP EXAM PART I

PART I EXAM WEIGHT | 30%

ADDITIONS

1. Owain Johnson, The Price Reporters. (London, UK: Routledge, 2018).

• Chapter 3. How Price Benchmarks Work
• Chapter 11. PRA Pricing Methodologies
• Chapter 12. Market-on-Close
• Chapter 15. PRA and European Regulation

DELETIONS

• None

© 2018 Global Association of Risk Professionals garp.org/erp 1

 2019 Energy Risk Professional (ERP®) Study Guide Changes

Natural Gas and Coal Markets

ERP EXAM PART I

PART I EXAM WEIGHT | 25%

ADDITIONS

1. Richard Lassander and Glen Swindle, Natural Gas Trading in North America. (Princeton, NJ: Scoville Risk
Partners, 2018).
• Chapter 3. Natural Gas Markets
• Chapter 4. Supply and Demand
• Chapter 5. Storage and Transport
• Chapter 8. Basis Markets (pages 158-176)

2. Jane Nakano and Sarah Ladislaw, A Tale of Three Coal Markets: US, China, and India. (Center for
Strategic & International Studies, 2018).*

DELETIONS

1. Vincent Kaminski, Energy Markets. (London, UK: Risk Books, 2012).

• Chapter 10. Natural Gas Transportation and Storage

2. Vincent Kaminski, Managing Energy Price Risk, 4th Edition. (London, UK: Risk Books, 2016).
• Chapter 7. US Natural Gas Markets

*This reading is freely available on the GARP website.

© 2018 Global Association of Risk Professionals garp.org/erp 2

 2019 Energy Risk Professional (ERP®) Study Guide Changes

LNG Market Fundamentals

ERP EXAM PART I

PART I EXAM WEIGHT | 10%

ADDITIONS

1. Michael D. Tusiani and Gordon Shearer, LNG: Fuel for a Changing World - A Nontechnical Guide,
2nd Edition. (Tulsa, OK: PennWell Books, 2016).
• Chapter 12. LNG Project Formation
• Chapter 13. Upstream Gas Supply Agreements
• Chapter 14. LNG Sale and Purchase Agreements
• Chapter 15. LNG Tanker Contracts

2. Perspectives on the Development of LNG Market Hubs in the Asia Pacific Region. (US Energy Information
Administration, March 2017)*

DELETIONS

• None

*This reading is freely available on the GARP website.

© 2018 Global Association of Risk Professionals garp.org/erp 3

 2019 Energy Risk Professional (ERP®) Study Guide Changes

Electricity Markets
ERP EXAM PART I

(includes Renewables Generation)

PART I EXAM WEIGHT | 35%

ADDITIONS

1. The World Bank, Financing Renewable Energy: Options for Developing Financing Instruments Using
Public Funds. (April 2015).*

DELETIONS

• None

*This reading is freely available on the GARP website.

© 2018 Global Association of Risk Professionals garp.org/erp 4

 2019 Energy Risk Professional (ERP®) Study Guide Changes

ERP EXAM
PART II

© 2018 Global Association of Risk Professionals garp.org/erp 5

 2019 Energy Risk Professional (ERP®) Study Guide Changes

Measure and Model Market Risk

ERP EXAM PART II

PART II EXAM WEIGHT | 30%

ADDITIONS

1. John C. Hull, Risk Management and Financial Institutions, 5th Edition. (Hoboken, NJ: John Wiley &
Sons, 2015).
• Chapter 25. Model Risk Management

DELETIONS

1. Kevin Dowd, Measuring Market Risk. 2nd Edition. (Wiley, 2005).

• Chapter 13. Stress Testing

© 2018 Global Association of Risk Professionals garp.org/erp 6

 2019 Energy Risk Professional (ERP®) Study Guide Changes

Measure and Model Credit/Liquidity Risk

ERP EXAM PART II

PART II EXAM WEIGHT | 30%

ADDITIONS

• None

DELETIONS

1. Jon Gregory, The xVA Challenge: Counterparty Credit Risk, Funding, Collateral and Capital, 3rd Edition.
(Hoboken, NJ: John Wiley & Sons, 2015).
• Chapter 10. Quantifying Credit Exposure (Sections 10.1 to 10.4.5)
• Chapter 12. Default Probabilities, Credit Spreads and Funding Costs (Sections 12.1 to 12.2.5)

© 2018 Global Association of Risk Professionals garp.org/erp 7

 2019 Energy Risk Professional (ERP®) Study Guide Changes

Apply Financial Energy Products

ERP EXAM PART II

to Manage Risk
PART II EXAM WEIGHT | 25%

ADDITIONS

1. Richard Lassander and Glen Swindle, Natural Gas Trading in North America. (Princeton, NJ: Scoville Risk
Partners, 2018).
• Chapter 6. Price Level Trading
• Chapter 7. Time Spreads
• Chapter 8. Basis Markets (pages 176-196)

DELETIONS

• None

© 2018 Global Association of Risk Professionals garp.org/erp 8

 2019 Energy Risk Professional (ERP®) Study Guide Changes

Risk Governance, ERM, and Capital Planning

ERP EXAM PART II

PART II EXAM WEIGHT | 15%

ADDITIONS

1. James Lam, Implementing Enterprise Risk Management – From Methods to Applications. (Hoboken, NJ:
John Wiley & Sons, 2017).
• Chapter 12. Risk Appetite Statement

2. Betty Simkins, and Russell Simkins, eds, Energy Finance and Economics. (Hoboken, NJ: John Wiley &
Sons, 2013).
• Chapter 9. Financial Statement Analysis for Oil and Gas Companies

3. International Risk Governance Council (IRGC), IRGC Guidelines for Emerging Risk Governance. (2015).*

4. SPE International, SPE Technical Report: Guidance for Decision Quality for Multicompany Upstream
Projects. (2016).*

DELETIONS

• None

*This reading is freely available on the GARP website.

© 2018 Global Association of Risk Professionals garp.org/erp 9

Creating a culture of risk awareness ®

garp.org
About GARP | The Global Association of Risk Professionals (GARP) is a non-partisan,
not-for-profit membership organization serving the risk management industry.
Founded in 1996, GARP advances the profession through education, research and
promotion of best practices through the GARP Risk Institute, GARP Benchmarking
Initiative and an array of informational and certification programs. GARP has
200,000 members in more than 190 countries and territories, and has certified more
than 50,000 professionals.

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