Integrated energy company deploys Credit Cube as part of strategic Supply, Trading, and Optimization Transformation initiative

  • 13,000 Employees
  • 40,000 Active Counterparties
  • 1600 Agreements

The Challenge

Credit support of the organisation’s Supply, Trading and Optimization strategic initiatives required a step-change from a pure manual sustainment model to one that would support competitive differentiation, advantage, and automation through the deployment of technology.

As a large Canadian integrated energy company, focused on developing Canada’s petroleum resource basin, the company explores for, acquires, develops, produces and markets crude oil and natural gas in Canada and internationally. It also transports and refines crude oil and markets petroleum and petrochemical products primarily in Canada. Their three business segments are: Oil Sands, Exploration and Production, and Refining and Marketing.

The Vision

The vision was to adopt a strategic credit risk management platform that enables full integration into their wider internal IT infrastructure and automated reporting.

After a thorough RFP evaluation process, they selected CubeLogic’s Risk3 enterprise credit risk platform and embarked on a comprehensive implementation process. The focus was on delivering across 6 primary business needs:

Streamline the Business Process and Technology Architectures: Consolidate systems and simplify business processes to provide a generic footprint across traded commodities.

Data Velocity: Provide an architecture that will provide speed and scale enabling real-time data validation and calculations.

Data Transparency: Sources of truth are well-defined and understood and reporting is consistent and robust

Analytics-driven: Insights and information as opposed to raw data manipulation

Future-Proof: Consistent, automated processes and reporting enable for scalability in the Credit functional support model

Information Security: Continue to seek opportunities to provide a secure and safe environment for data and systems.

The Scope

  • Manage credit counterparty setup, e.g. reference data, trade agreements; limits, commodity allocations, collateral, and company hierarchy.
  • Manage counterparty credit reviews and automate compliance reporting in line with standards and practices.
  • Manage collateral (e.g. cash, letters of credit, guarantees, risk participation, and insurance).
  • Provide Liquidity Risk analysis.
  • Provide Credit Analytics reporting (e.g. walk-forwards, credit exposure, exposure distribution by credit rating, potential credit loss, etc.).
  • Manage exposure calculations and manual credit adjustment inputs.
  • Out-of-the-box integration with external credit agencies (Ratings and financial metrics).
  • Robust integration capabilities to CTRM/ERP, AR systems, and web-based data platforms.
  • Integrate with the company’s identity and access management system for user authentication.

    The Solution

    The organisation had a rigorous project management methodology that the project team adhered to. The project team was made up of their internal team, CubeLogic, and a 3rd party System Integrator who worked hand-in-glove to deliver a widely acknowledged successful project. The phases of the project progressed from solution design and planning, to execution, testing, deployment, and sustainment.

    Outcomes and Benefits

    The successful implementation and integration of the CubeLogic Credit platform provided numerous benefits to the organization, not the least of which were:

     

    • Automated visual graphics and reporting for daily exposures, compliance, and trend analysis
    • Automation of consolidated company wide exposures and credit metrics for stewardship
    • Consistent and robust automated processes and controls.
    • Scalable credit function support model

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