Danske Commodities Secures “Top-Tier Risk Management” with Allegro

Discover What Danske Had to Say About Allegro in Its Annual Report

Danske Commodities’ 2018 was one for the books. The pan-European energy leader, headquartered in Denmark, generated an EBIT of €72 million, an impressive increase of 28 percent over 2017.

In its 2018 Annual Report, Danske discussed being “exposed to a variety of risks through its daily trading activities.” For the organization to defend against volatility, it determined that “risk management is key to business growth.”

Take a look at what Danske had to say in its annual report:

“Danske Commodities has implemented a new top-tier ETRM system, Allegro, which has replaced the legacy proprietary solution. During Allegro’s first year in operation, more than three million trades were processed from deal capture to settlement. The benefits of the new ETRM system are manifold and primarily stem from the fact that the data structure has improved significantly. This optimises straight-through processing of trades, providing better efficiency, scalability and greater transparency for further analysis.

A specific point of improvement was in Danske Commodities’ reporting, with risk reporting migrated to a Power BI-solution. Valuation and computation methodologies have been validated, resulting in a more robust and scalable reporting format with new and better functionality responding to the increasing requirements for transparency in performance numbers.

During 2018, Danske Commodities carefully managed its risk profile. With an increase in traded volumes and increased volatility in the first and fourth quarters, usage of risk capital went up. This was in full alignment with the Company’s strategic objectives and the risk capital policy.”

This growth strategy of prioritizing the automation and digitalization of its risk management, allowed Danske to challenge imminent unpredictability and stringent reporting requirements, while outpacing the competition with faster response times and an optimized value chain.

Danske Sees Early Wins with Allegro

As Danske first started utilizing Allegro, there was a distinct improvement in its trading productivity. During the company’s first 90 days, it reached 1 million power trades. Also, it successfully migrated 367,000 trades from its prior legacy system. Danske is now enabled to produce over 9,000 trades per day, with over 99 percent of trades captured automatically through exchanges, brokers, and business tools. The essential drivers for Danske choosing Allegro was Allegro’s ability to integrate with existing IT systems combined with its ability to scale.

Danske Commodities’ mission for a mature and effective risk management function is now strongly in place to take on greater challenges, capture more opportunities, and further position itself for a groundbreaking 2019.

Interested in how Allegro’s CTRM solution and advanced analytics can transform your organization’s risk management capabilities? Download Allegro’s Corporate Brochure to learn more.

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