ERP

2017

Study Guide Changes

2017 ERP STUDY GUIDE CHANGES

The Study Guide Changes is the list of all readings deleted

from the 2016 curriculum, and all the new required readings
added for 2017. Returning 2016 ERP candidates should
review the curriculum changes before they begin to prepare
for the 2017 examinations.
 2017 Energy Risk Professional (ERP) Exam Study Guide Changes

Part I Changes
Introduction to Energy Commodities and Risk Management

Additions:
1. S. Mohamed Dafir and Vishnun N. Gajjala. Fuel Hedging and Risk Management. (Hoboken, New Jersey:
John Wiley & Sons, 2016).
Chapter 1: Energy Commodities and Price Formation
2. Global Association of Risk Professionals (GARP). Code of Conduct.*

Deletions:
1. Glen Swindle. Valuation of Risk Management in Energy Markets. Cambridge Press (2014).
Chapter 2: Forwards and Carry
Chapter 3: Macro Perspective

*This reading is available for free on the GARP website.

2016 Global Association of Risk Professionals. 1

 2017 Energy Risk Professional (ERP) Exam Study Guide Changes

Part I Changes
Crude Oil Markets and Refined Products

Additions:
1. Oil and Gas Exploration and Production Lending. Office of the Comptroller of the Currency (March 2016).*
2. A Practical Guide to Incoterms 2010. Livingston International.*
3. How Pipelines Make the Oil Market Work Their Networks, Operation, and Regulation. Allegro Energy
Group (December 2001).*
4. Christophe Barret. Brent prices: Impact of PRA methodology on price formation. Oxford Energy
(March 2012).*

Deletions:
1. RINS: Renewable Fuel Standards Hit the Blend Wall. Federal Reserve Bank of Dallas (March 2014).
2. What Drives US Gasoline Prices? US Energy Information Administration (October 2014).
3. Guide to the Incoterms 2010 Rules & Reference Chart. International Chamber of Commerce (2010).
4. Moving Energy Safely: A Study of the Safe Transport of Hydrocarbons by Pipelines, Tankers and Railcars
in Canada. Canadian Senate Committee on Energy, the Environment and Natural Resources (August 2013).
5. Betty J. Simkins and Russell E. Simkins, eds. Energy Finance and Economics: Analysis and Valuation, Risk
Management, and the Future of Energy. (Hoboken, New Jersey: John Wiley & Sons, 2013).
Chapter 11: Real Options and Applications in the Energy Industry

*This reading is available for free on the GARP website.

2016 Global Association of Risk Professionals. 2

 2017 Energy Risk Professional (ERP) Exam Study Guide Changes

Part I Changes
Natural Gas and Coal Markets

Additions:
1. Vincent Kaminski. Managing Energy Price Risk 4th Edition (London, UK: Risk Books, 2016).
Chapter 7: US Natural Gas Markets
Chapter 12: Coal
2. Anthony J. Melling. Natural Gas Pricing and its Future: Europe as the Battleground. Carnegie
Endowment (2010).
Chapter 1: The Development of European Gas Contracting
Appendix: Key Terms of Long-Term Oil-Indexed Take-or-Pay Contracts
3. Jonathan Stern and Howard Rogers. The Dynamics of a Liberalised European Gas Market Key
determinants of hub prices, and roles and risks of major players. Oxford Energy (December 2014)
(Sections 1.1 to 1.4 only).*
4. Reserve Bank of Australia. Developments in Thermal Coal Markets (June 2015).*
5. Ministry of Economy, Trade and Industry. Strategy for LNG Market Development: Creating a flexible LNG
market and developing an LNG trading hub in Japan (May 2016).*
6. Michael D. Tusiani and Gordon Shearer. LNG: Fuel for a Changing World - A Nontechnical Guide - 2nd
Edition (Tulsa, Oklahoma: 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

Deletions:
1. Vivek Chandra. Fundamentals of Natural Gas: An International Perspective. (Tulsa, Oklahoma: PennWell
Books, 2006).
Chapter 4: Contracts and Project Development
2. Vincent Kaminski. Energy Markets. (London, UK: Risk Books, 2012).
Chapter 26: Coal Markets
3. Andrew Inkpen and Michael H. Moffett. The Global Oil and Gas Industry: Management, Strategy and
Finance (Tulsa, Oklahoma: PennWell Books, 2011).
Chapter 9: Liquefied Natural Gas
4. Bassam Fattouh, Howard V. Rogers, and Peter Stewart. The US Shale Gas Revolution and its Impact on
Qatars Position in Gas Markets. Columbia Center on Global Energy Policy (March 2015).
5. Jesse Thompson. Producers, Refiners View Strategies to Trim Texas Glut of Ultralight Condensate Oil.
Federal Reserve Bank of Dallas (Q4 2014).
6. Richard K. Morse and Gang He. The Worlds Great Coal Arbitrage: Chinas Coal Import Behavior and
Implications for the Global Coal Market (August 2010).
7. International Energy Agency. Developing a Natural Gas Trading Hub in Asia: Obstacles and
Challenges (2013).

*This reading is available for free on the GARP website.

2016 Global Association of Risk Professionals. 3

 2017 Energy Risk Professional (ERP) Exam Study Guide Changes

Part I Changes
Electricity Markets and Renewable Generation

Additions:
1. Rafal Weron. Modeling and Forecasting Electricity Loads and Prices. (Hoboken, New Jersey: John Wiley &
Sons, 2006).
Chapter 1: Complex Electricity Markets
2. Barry Murray. Power Markets and Economics: Energy Costs, Trading, Emissions. (West Sussex, UK: John Wiley &
Sons, 2009).
Chapter 11: Ancillary Service Markets
3. Darryl R. Biggar and Mohammad Reza Hesamzadeh. The Economics of Electricity Markets. (West Sussex, UK:
John Wiley & Sons, 2014).
Chapter 2: Introduction to Electric Power Systems
Chapter 3: Electricity Industry Market Structure and Competition
4. Quadrennial Technology Review 2015. Chapter 4: Technology Assessments Solar Power Technologies. US
Department of Energy (2015).*
5. ISO New England. Overview of New Englands Wholesale Electricity Markets and Market Oversight (May 2014).*
6. International Renewable Energy Agency (IRENA). Renewable Energy Integration in Power Grids (April 2015).*
7. Leibniz Information Center for Economics. The Future of the European Power Market (2015).*
8. Tim Buckley and Jai Sharda. Indias Electricity Sector Transformation. Institute for Energy Economics and
Financial Analysis (Aug 2015) (Sections 1 to 6 only).*
9. KU Leuven Energy Institute. The Current Electricity Market Design in Europe (2015).*
10. KU Leuven Energy Institute. Cross-Border Electricity Trading: Towards Flow-Based Market Coupling (2015).*
11. KU Leuven Energy Institute. Capacity Mechanisms (2013).*
12. KU Leuven Energy Institute. Negative Electricity Market Prices (2014).*
13. KU Leuven Energy Institute. Storage Technologies for the Power System (2014).*

Deletions:
1. Daniel Kirschen and Goran Strbac. Fundamentals of Power System Economics (2004).
Chapter 6: Transmission
2. Kathleen Spees, Samuel A. Newell, and Johannes P. Pfeifenberger. Capacity Markets Lessons Learned from the
First Decade. Economics of Energy & Environmental Policy, 2013, Volume 2, Number 2.
3. Market Evolution. Wholesale Electricity Market Design for 21st Century Power Systems (October 2013). (Sections
1 to 4 only).
4. MIT Interdisciplinary Study. The Future of Solar Energy (2015).
Chapter 1: Introduction and Overview
Chapter 4: Solar PV Installations
Chapter 8: Integration of Solar Generation in Wholesale Electricity Markets
5. Federal Energy Regulatory Commission: Operator Initiated Commitments in RTO and ISO Markets (December 2014).
6. Jurgen Weiss and Bruce Tsuchida. Integrating Renewable Energy into the Electricity Grid. Advanced Energy
Economy Institute (June 2015).

*This reading is available for free on the GARP website.

2016 Global Association of Risk Professionals. 4

 2017 Energy Risk Professional (ERP) Exam Study Guide Changes

Part II Changes
Financial Energy Products

Additions:
1. Glen Swindle. Valuation and Risk Management in Energy Markets. (New York: Cambridge University
Press, 2014).
Chapter 2: Forwards and Carry
2. Betty J. Simkins and Russell E. Simkins, eds. Energy Finance and Economics: Analysis and Valuation, Risk
Management, and the Future of Energy. (Hoboken, New Jersey: John Wiley & Sons, 2013).
Chapter 11: Real Options and Applications in the Energy Industry
3. Jon Gregory. Central Counterparties. (West Sussex, UK: John Wiley & Sons, 2014).
Chapter 2: Exchanges, OTC Derivatives, DPCs and SPVs (Sections 2.1 and 2.2 only)
Chapter 3: Basic Principles of Central Clearing
4. S. Mohamed Dafir and Vishnun N. Gajjala. Fuel Hedging and Risk Management. (Hoboken, New Jersey:
John Wiley & Sons, 2016).
Chapter 2: Major Energy Consumers and the Rationale for Fuel Hedging
Chapter 4: Shipping and Airlines Basics for Fuel Hedging

Deletions:
1. Financial Conduct Authority: Regulating the Commodity Markets: A Guide to the Role of the FCA
(February 2014).
2. Vincent Kaminski. Energy Markets. (London, UK: Risk Books, 2012).
Chapter 4: Energy Markets: The Instruments
3. International Energy Agency. The Mechanics of the Derivatives Markets: What They Are and How They
Function (April 2011).

2016 Global Association of Risk Professionals. 5

 2017 Energy Risk Professional (ERP) Exam Study Guide Changes

Part II Changes
Risk Assessment and Energy Price Modeling

Additions:
1. Rafal Weron. Modeling and Forecasting Electricity Loads and Prices. (Hoboken, New Jersey: John Wiley &
Sons 2006).
Chapter 2: Stylized Facts of Electricity Loads and Prices (Sections 2.1 to 2.4 and 2.7 only)
Chapter 3: Modeling and Forecasting Electricity Loads
2. Vincent Kaminski. Managing Energy Price Risk 4th Edition (London, UK: Risk Books, 2016).
Chapter 8: Managing Oil Price Risk: Dealing with the Time-Varying Relationship between the Price of
Oil and Fundamentals

Deletions:
1. Hillard Huntington, Saud M. Al-Fattah, Zhuo Huang, Michael Guewa, and Ali Nouri. Oil Price Drivers and
Movements: The Challenge for Future Research (2012 Rev. 2013).

2016 Global Association of Risk Professionals. 6

 2017 Energy Risk Professional (ERP) Exam Study Guide Changes

Part II Changes
Risk Management Tools

Additions:
1. Jon Gregory. Counterparty Credit Risk and Credit Value Adjustment: A Continuing Challenge for Global
Financial Markets. (Hoboken, New Jersey: John Wiley & Sons, 2012).
Chapter 10: Default Probability, Credit Spreads and Credit Derivatives (Sections 10.1 and 10.2 only)
2. Shyam Venkat and Stephen Baird. Liquidity Risk Management A Practitioners Perspective. (Hoboken,
New Jersey: John Wiley & Sons, 2016).
Chapter 3: Liquidity Stress Testing
Chapter 7: Contingency Funding Planning
3. Michel Crouhy, Dan Galai, and Robert Mark. The Essentials of Risk Management, 2nd Edition. (McGraw-Hill
Education, 2014).
Chapter 17: Risk Capital Attribution and Risk-Adjusted Performance Measurement
4. John Fraser, Betty Simkins, and Kristina Narvaez. Implementing Enterprise Risk Management: Case
Studies and Best Practices (Hoboken, New Jersey: John Wiley & Sons, 2015).
Chapter 4: Value and Risk: Enterprise Risk Management at Statoil
Chapter 20: Implementing Risk Management within Middle Eastern Oil and Gas Companies
5. Operational Risk Management in the Energy Industry. Management Solutions (2014).*
6. James Lam. Implementing an Effective Risk Appetite. The Association of Accountants and Financial
Professionals in Business (August 2015).*

Deletions:
1. Jon Gregory. Counterparty Credit Risk and Credit Value Adjustment: A Continuing Challenge for Global
Financial Markets. (Hoboken, New Jersey: John Wiley & Sons, 2012).
Chapter 7: Central Counterparties
2. Allan Malz. Financial Risk Management: Models, History, and Institutions. (Hoboken, New Jersey: John
Wiley & Sons, 2011).
Chapter 6: Credit and Counterparty Risk
3. Larry Rittenberg and Frank Martens. Enterprise Risk Management Understanding and Communicating
Risk Appetite. COSO (January 2012).
4. John Fraser and Betty Simkins. Enterprise Risk Management: Todays Leading Research and Best
Practices for Tomorrows Executives. (Hoboken, New Jersey: John Wiley & Sons, 2010).
Chapter 16: Operational Risk Management
5. Global Association of Risk Professionals (GARP). Code of Conduct.
6. Luke Patey. Kenya: An African Oil Upstart in Transition. Oxford Energy (October 2014).
7. Oil and Gas Exploration and Production Lending. Office of the Comptroller of the Currency (April 2014).

*This reading is available for free on the GARP website.

2016 Global Association of Risk Professionals. 7

 2017 Energy Risk Professional (ERP) Exam Study Guide Changes

Creating a culture of risk awareness

About GARP | The Global Association of Risk Professionals (GARP) is the leading globally recognized association
dedicated to the education and certification of risk professionals, connecting members in more than 190 countries
and territories. GARPs mission is to elevate the practice of risk management at all levels, setting the industry
standard through education, training, media, and events.

Main Office London Office

111 Town Square Place 2nd Floor
14th Floor Bengal Wing

garp.org Jersey City, New Jersey

07310, U.S.A.
9A Devonshire Square
London, EC2M 4YN, U.K.
2016 Global Association of Risk Professionals. All rights reserved. (11.16.16) +1 201.719.7210 +44 (0) 20 7397 9630