Energy Credit Best Practices – Chapter: Information Technology http://ccro.org © Copyright 2022, CCRO. All rights reserved. 34 (securities) with similar price movements. When a positive correlation shows that two commodities move in the same direction, such as gold and silver, Crude Oil, and natural gas, etc., a trader can buy one commodity and sell another commodity to reduce risk. Current Exposure – Is the initial financial loss a creditor could lose in the current period from the default of a counterparty or customer. Current exposure is comprised of (Delivered but Unbilled + Billed + MtM) Cybersecurity – Is the combination of people, policies, processes and technologies employed by an enterprise to protect its cyber assets. Cybersecurity is optimized to levels that business leaders define, balancing the resources required with usability/manageability and the amount of risk offset. Subsets of Cybersecurity include IT security, IoT security, Information Security and OT security. Data Governance - A set of processes that ensures that data assets are formally managed throughout the enterprise. A Data Governance model establishes authority and management and decision-making parameters related to the data produced or managed by the enterprise. Data Infrastructure - A Data Infrastructure can be thought of as a digital infrastructure that is known for promoting data consumption and sharing. A strong Data Infrastructure enhances the efficiency and productivity of the environment in which it is employed, increasing the collaboration and interoperability. Data Mining - The extraction of data from large amounts of data in a set and repeatable pattern. Typically used for identifying trends and patterns more than analytics of what the outcome may provide. Deep Learning - Leveraging Machine Learning, Deep Learning tiers multiple layers of machine thought and decisioning upon one another, forming a sort of neural network of logic. Each layer is allowed to operate independently upon one another, allowing a large range of variables that are considered at each step. Descriptive Analytics - Intelligence and analytics that answers “what has happened.” This typically only references outcomes from a historical perspective. Diagnostic Analytics - Intelligence and analytics that answers “why did it happen.” This typically only references outcomes from a historical perspective. Energy Trading and Risk Management (ETRM) - System s involves commercial decision making and market execution using an integrated System that enables data exchanges among trade floor, operations, credit, contract, and accounting functions. Integral to the process are event and trade identification/capture, comprehensive Risk Management strategies/policies, scheduling/nomination/transportation, and settlement execution. The process also provides for price transparency, market monitoring, controlled access, and regulatory compliance. Expected Exposure - Average market value on future target date. Equivalent to 50% Confidence Interval. General Ledger (GL) - Is the record-keeping System for a company's financial data with debit and credit account records validated by a trial balance. The General Ledger provides a record of each financial transaction that takes place during the life of an operating company. Greenfield Environment – Developing a System for a totally new environment, without concern for integrating with other System s, especially not legacy System s.