Samantha Kumaran, President, Timetrics RiskSamantha Kumaran, President
Organizations in every industry deal with the challenge of risk quantification, however, those in the energy trading industry face even higher risks, owing to the complex—often bespoke—profiles of non-traditional physical assets, which include volumetric and climate risks, renewable energy and variable supply risks, exploration risks, which all need to be integrated with highly volatile market risks. This increased risk should mandate an increased investment in high-end, analytical tools, that not only provide robust market risk calculations, but also tackle the framework of non-traditional risks, for example in integrating volumetric risk, climate forecasting, and asset-based risks associated with exploration, drilling, and life cycles of generation.

Samantha Kumaran, who has earned a first class honors in Applied Mathematics, from Trinity College, University of Cambridge, UK, is the founder and owner of Timetrics Risk, a boutique risk analytics solutions company, which provides advanced analytical solutions to address the challenges of enterprise risk management in the commodities and energy trading industry. “We solve problems in unchartered, non-traditional markets—which have high mathematical complexities—and other areas of risk that aren’t easily quantifiable,” begins Samantha, President of Timetrics Risk. Ms. Kumaran founded Timetrics Risk, a minority woman owned business, in 1993. For twenty five years, its’ client base has spanned investment banks, Fortune 500 companies, large and small utilities, government owned entities, and deregulated energy players.

Timetrics is also a leader in the commodities derivative market, developing a solution called Timetrics Z-Live™ that supersedes many platforms, in its advanced mathematical ability to handle large portfolios of exchange-traded commodity derivatives, with real-time intraday CME compliance, providing a competitive edge in the intraday market risk for Futures Clearing Merchants (FCMs’). Timetrics also has successfully pioneered analytic solutions, in the bespoke risk management of electricity transmission contracts such as FTR’s and TCC’s, where market risk calculations are more unique in time series distribution, liquidity and auctions in the secondary markets.

Timetrics analytical engines are IT neutral and modular based and can interface with existing software platforms. Moreover, the modular-based solutions offer a greater degree of flexibility and compatibility that can be interfaced with any bigger system, seamlessly and effortlessly.

With innovation in its DNA, Timetrics is continuously developing new solutions to challenge the status-quo in advancing new risk measures that go beyond VaR, and pioneering risk management methodologies in that tackle non-traditional, complex, and hard-to-quantify energy risk problems.

Timetrics’ solutions can be better understood through their offerings to a natural gas and oil exploration client, a Fortune 100 company, who had a complicated physical asset portfolio, of several thousand gas wells, pipelines, and contractual obligations spread over a large region in the southwest U.S.

We solve problems in unchartered, non-traditional and derivatives market—which have high mathematical complexities—and other areas of risk that aren’t easily quantifiable


Timetrics pioneered a one-of-a-kind, customized Risk Adjusted Return on Capital (“RaRoC”) solution tailored to the client’s gas exploration business which took into consideration, wellhead decline, quality of gas, real optionality (on contractual provisions, or whether to drill or not drill), fractionation, and liquidity in the deregulated natural gas markets. The impact was several millions of dollars upside to the client, in improving operations.

With a focus on improving client’s returns, and to determine/ master risks in non-traditional areas, Timetrics owns the trademark for a risk solution Infrastructure-at-Risk™, which calculates risks based on asset planning and system planning for infrastructure across roads, railways, generation assets and integrated systems. Examples of how Infrastructure-at-Risk™ carves a niche in the market place, is it can assist in governmental and energy planning from a quantified risk perspective, such as consideration of asset life cycle, natural disaster protections, hedging, system planning, flooding, backup generation and impacts to generation and utilities distribution. Deployment of infrastructure planning can be in the billions of dollars.

Additionally, the boutique, advanced analytical solution provider has an agile approach to quickly understand the needs of their clients and builds solutions accordingly. At the core, what differentiates Timetrics, is their ability to build customized solutions based on client needs, and its focus to use risk management to improve shareholder value. Timetrics business model has an emphasis on creativity and innovation at the forefront, a focus on research and development, and the provider always has something new in the analytical engine pipeline.

Samantha concludes, “Timetrics' vision is to integrate risk management into the thought-process and the spinal cord of the company's organizational planning to help create financial value and better optimize and use risk capital, to allocate risk capital cost to business to improve a client’s revenue. We are becoming quite competitive in the US with our derivatives trading and so we are looking at expanding the usage of our derivatives risk management capabilities and expand in the positioning of the marketplace. We foresee a massive potential to tap into the Middle East oil markets, and developing infrastructure markets.”