Client Story

In 2018 a Private equity firm with multiple subsidiaries and divisions greenlighted a project to replace their existing Risk Management System. However, the project was not progressing as planned and in 2019, 5P Consulting was brought in to get movement on the project. With a focus on Project Management (PM) and User Acceptance Testing (UAT) Compliance, we were able to partner with this client and successfully complete the project with a go-live in May of 2023.

Business Problem

In 2018, the approval to build a business case for the replacement of the existing Risk Management System (RMS) was approved. The project was initiated due to the increasing operational risks of using and maintaining an aging homegrown system, which was a critical component of the client’s trading operations. The increasingly complex trading operations were further challenged by complex transaction representation, outdated reporting capabilities, and a dwindling pool of system SMEs.   After a thorough Request for Proposal (RFP) process, a solution was selected. The goal of this implementation phase was to streamline the trading and trade operations processes to optimize the use of available Energy Trading and Risk Management (RM) software. The selected vendor’s RM software provided an efficient, secure, integrated system to track and report on all of the client’s trades and related risks.

Business Needs

They needed:

• A new integrated Risk Management system that provided more efficient reporting capabilities, seamless transaction management, and decreased operational risks through a more secure and technologically advanced solution
• A robust module, and commercial off-the-shelf (COTS) based Commodity Trade & Risk Management (CTRM) & information delivery solution to run their business more efficiently
• A project management team to liaise with stakeholders, vendors, and SMEs to get movement on the project and manage day-to-day activities across all streams
• A clear design and Gantt to get the project to go live
• Execution throughout the implementation phase to ensure the project is completed on time, at budget, and within scope

What 5P Did

• Managed the project and put a test plan in place leading the execution to ensure the time, cost, and scope of the UAT activities were met
• Managed resources associated with the UAT to ensure that deliverables were understood, and deadlines met on time and with consistency and accuracy. (i.e. including the buy-in and execution with business stakeholders, SMEs, vendors, etc.)
• Ensured the following requirements were met:
  • Software development lifecycle (SDLC) executed
  • SOX/SOC/NERC CIP compliance requirements met in UAT
  • Change requests to go through the Change Advisory Board (CAB) for approval
• Monitored:
  • Vendor defect resolutions from identification  to closure
  • Year-end closure activities
• Traveled to client site as requested 
• Completed an in-depth requirements analysis, solution design, and implementation for Energy Trading and Risk Management Software 

Results

The results of this engagement that leveraged our Program Management Office (PMO) services included:

• Managing 4 vendors associated with the project
• Managing stakeholders, vendors, and SMEs across multiple cost centers within the client’s organization
• Working with a 3rd party to create UAT scripts for business users
• Preparing all documentation for SOC1, SOC2, and SOX Auditing
• Preparing and signing off on all documentation for the CTRM & Information delivery systems
• Creating a complete implementation plan and managing the implementation of both a CTRM & information delivery systems
• Leading executive stakeholder monthly report-outs of the implementation, risks, issues, and actions

Overall the project was a success and all the key deliverables were met. We were successfully able to complete the requirements analysis, solution design, and implementation of a CTRM & Information Delivery solution. Deliverable: Timeline from Start to Go-Live The three main components executed in tandem as part of the process of getting the Risk Management system live included working with three departments within the organization to get the system up & running. Each department had its own system requirements, testing phase, and setup phase prior to going live.