Prescio Consulting is active in resolving problems within and adding value to a variety of industrial sectors including credit, banks, brokerages, financial companies, retail, electricity and natural gas. Representative of our analytical, detail-oriented, and IT intensive methodology are our approaches to the banking and electricity sectors.

• Banking

  The marketplace continues to  change rapidly in the banking industry.  New market forces are developing and shifting continuously, and regulatory pressures are increasing. These new market dynamics not only create new risks, but also create a plethora of opportunities for banks to seize upon to increase shareholder and stakeholder value. These powerful market forces and new global realities challenge companies and investors to be better informed and faster at making decisions than ever before.

  To prosper in this ever-changing environment, banks must aggressively identify opportunities and also identify the risks associated with these opportunities. The key tasks facing banks today are to identify, quantify, and effectively manage these risks.

  Different types of risk do not work in isolation. Risk elements dynamically affect and interact with the various facets of a bank's businesses simultaneously. Therefore risk needs to be understood, measured, and managed both as isolated elements and as enterprise-wide dynamics.

  Prescio's expertise is in identifying, measuring, and managing risk. Our core competencies are in statistical and quantitative methods and software systems. Our custom designed products and services are anchored in our core competencies and are designed to enable our banking clients to systematically identify, understand, quantify, and manage various risk types.

  Overall, services and products for our banking clients are targeted to addressing quantitative and statistical modeling, business processes and operations, product pricing, portfolio valuation, market analysis, market risks, credit risks, operational risks, model validation, data flow and storage, system integration, and customized application software development needs.

  Our team of consultants combines years of experience in the banking industry with the ability to offer contemporary solutions for today's challenges. We work with a wide range of banking institutions, from small community based entities to multi-national banking conglomerates.

  

• Electricity

  Fundamental   econometric    analysis  and   quantitative  modeling  of  the electricity market.
  
  Illustrative of the problem-solving approach Prescio brings to the electricity sector.

  • Characterize  analytically   and  empirically  the  factors  influencing the forward curve of electricity prices.
    
  • Determine analytically and empirically the time series properties of electricity price dynamics, in particular, how these dynamics vary with fundamental supply and demand conditions as measured by the spot price, load/output, fuel prices, and the slope of the term structure of electricity prices.
    
  • Model the behavior of the term structure of electricity prices, with special emphasis on how the correlation between different points on the forward curve varies with market conditions.
    
  • Model the correlation between electricity prices at different locations, with special emphasis on how this correlation depended on market conditions.
    
  • Model the relation between power and fuel prices, with special emphasis on the how the correlation between these prices vary with market conditions.
    
  • Develop a customized electricity forward curve with appropriate user friendly software.
    
  • Model options embedded in physical power contracts, including path dependent options (e.g., swing options).
    
  • Model correlation sensitive products, such as power swaptions, or options on the spark spread, or options on the spread between electricity prices in different markets.
    
  • Develop Customized Power Contract© valuation models and user-friendly software .