When answering this question, it's important to demonstrate a comprehensive understanding of risk management principles specific to energy trading. Start by discussing the various types of risks involved, such as market risk, credit risk, operational risk, and regulatory risk. Then, outline specific strategies you use to mitigate these risks. For example, you might talk about using hedging techniques, diversifying your portfolio, conducting thorough market analysis, and staying updated with regulatory changes. Provide concrete examples from your past experience to illustrate how you've successfully managed risk in your trading activities. This will show the interviewer that you not only understand the theory but also have practical experience in applying these strategies effectively.
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