Risk Management System Architects Reveal Innovative Hedging Process

NEW YORK, Aug. 11, 2020 /PRNewswire/ -- Wayne Penello, President and founder of Risked Revenue Energy Associates (R^2), and R^2 Managing Director Andrew Furman, today announced the publication of Risk Is an Asset: Turning Commodity Price Uncertainty into a Strategic Advantage. The book is published with ForbesBooks, the exclusive business book publishing imprint of Forbes.

Each investment carries inherent risk. To offset potential losses, investors often employ a strategy known as hedging–counterbalancing that initial purchase with a separate investment that serves as an insurance policy. While this is an effective way to prevent large-scale loss, this safety net can be an impediment to higher portfolio growth. In their new book, Wayne Penello and Andrew Furman outline their unique approach to hedging, designed to maximize investment yield and transform corporate price risk into a strategic advantage.

The pair's core philosophy is Process Risk Management (PRM). PRM is an objective, market-based volatility observation used to provide businesses with estimates of budgetary risk, measured as a cost for consumers and revenues for producers. By measuring risk in budgetary terms, PRM helps firms maintain focus on its own success while avoiding the trap of trying to outguess the market.

Risk Is an Asset was written to help leaders "identify which metrics are important for you, where there are opportunities to take advantage of risk, and chart a financial path forward," Penello explained.

To learn about Penello and Furman's unique approach to risk management, pick up a copy of Risk Is an Asset: Turning Commodity Price Uncertainty into a Strategic Advantage on Amazon today.

About Wayne Penello Wayne Penello is the president and founder of Risked Revenue Energy Associates (R^2 or "R squared.") He has forty years of market-making, option-trading, and asset management experience in the energy industry. Penello was formerly a research scientist. He holds a master's degree in marine sciences from Stony Brook University and an undergraduate degree in marine biology from Southampton College.

About Andrew Furman Andrew Furman has thirty-five years of experience in energy and trading. For the past ten years at R^2, he has delivered hedge solutions to senior management of public corporations, private firms, institutions, and utilities. After serving as a managing director at two hedge funds, he assisted in the growth of R^2 through the deployment of its patented analytics. A risk-management and financial-engineering expert, Furman received a bachelor of science degree in chemical engineering from MIT.

About ForbesBooks Launched in 2016 in partnership with Advantage Media Group, ForbesBooks is the exclusive business book publishing imprint of Forbes. ForbesBooks offers business and thought leaders an innovative, speed-to-market, fee-based publishing model and a suite of services designed to strategically and tactically support authors and promote their expertise. For more information, visit forbesbooks.com.

Media Contacts Melody Valenzuela, Risked Revenue, [email protected]  Jack Reich, ForbesBooks, [email protected]

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