Understanding CTRM Systems

Modern Commodity Management

Find the right software for your business.

In the commodity industry, traders, risk managers, accountants, schedulers and many other professionals have, for years, relied on some type of software to help them run their operations. That could mean spreadsheets. It could be in-house systems that were built from the ground up. It could be third-party software. It might even mean a combination of two or more.

For today’s business, using one of these methods might no longer be the ideal approach. That’s especially true considering the modern, powerful and commodity-dedicated systems that are available. One type of system is known as commodity trading and risk management software, or CTRM.

Once you understand more about what CTRM systems do, especially compared with spreadsheets or aging in-house systems, you may start to consider one of these platforms for your enterprise.

Simply stated, a CTRM (or what is sometimes called energy trading and risk management software, or ETRM) is meant to make managing a commodity business more efficient and more profitable by providing a single system through which front, middle and back office employees can monitor and complete their work.

In some cases, these software platforms specialize in one commodity or commodity type, while others are capable of handling multiple commodities and greater complexity. Some might concentrate on a particular country or region, whereas others could be global.

Depending on what your business does, what your goals are, where you operate and what you need your work force to focus on, a CTRM could make sense.

The Importance of an Integrated System

If a company is using spreadsheets to manage its trading and risk management, it’s potentially facing considerable issues. Spreadsheets are cumbersome to update, extremely difficult to share efficiently and lack the confidence automated software can provide.

Meanwhile, older proprietary systems can be difficult to manage and modernize, especially if the developers who built them have moved on. Is a system built for the late 1990s or early 2000s capable of dealing with today’s regulatory complexity?

The promise of a CTRM / ETRM platform is better communication, easier management of profit-and-loss statements, a reduction in errors, a central location for business intelligence and, ultimately, the possibility of lower costs because of the efficiencies that can be captured.

With the right system, you can be confident you’re tracking the entire deal life cycle and maintaining awareness of market shifts, while simultaneously controlling risk and responding to regulatory changes.

Allegro’s CTRM Solution

One CTRM system is Allegro, which works with commodity customers across the oil and gas, utilities, chemicals and agriculture areas, in markets around the world.

The Allegro software system is built on the idea that customers want to have position visibility, to manage their risk, to ensure proper controls and to maintain regulatory compliance amid rapid change. With Allegro, these customers can view a trade’s status, oversee logistics and handle their accounting needs, among other critical tasks. It’s a powerful commodity risk management system from the day it’s installed, but, owing to industry-leading extensibility, custom code can easily be added that will make Allegro precisely what you require.

In other words, Allegro is made to enable users to work smarter and faster than they ever could with less-sophisticated competing solutions.

At Allegro, we believe we are the gold standard in commodity management. When you’re considering a software system for your enterprise, get in contact with us, and we can tell you more about how our product can enhance your operations. Our CTRM system could be exactly the business solution you’ve been seeking.

About Allegro

Allegro, based in Dallas, provides commodity trading and risk management software for companies who buy, sell, produce or consume commodities. With deep expertise based on more than three decades of experience, Allegro enables customers to gather the global intelligence they need to oversee physical and financial positions and to optimize their assets and portfolios by quantifying and mitigating risk. Utilities, oil and gas producers, crude oil traders, refiners and processors of agricultural products are among the users who rely on Allegro every day to make their operations more efficient.

Allegro was founded in 1984, and today it has offices in London, Singapore, Calgary, Dubai, Houston, Jakarta and Singapore, along with a global network of experienced partners.

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