Navigating Volatility: Five Takeaways from the TEPA Panel on Market Risk

The panel brought together diverse perspectives, including SmartestEnergy’s, Colton Evans, Head of Operations, Channel Partner Manager, Mike Wirkus and moderated by Head of Strategic Partnership and Sale, Matt Stasium. Our conversation explored how the energy ecosystem is evolving—and what it means for long-term strategy.

Here are the five most important takeaways from the panel:

1. Volatility has redefined credit risk across the market

Volatile markets don’t just impact price, they reshape how credit is extended and managed. In the past, credit risk was far less dynamic. Today, the credit landscape is much more complex

“We’re seeing risk flow all the way to the customer level,” noted Colton Evans, “A single contract with aggressive price swings can ripple back upstream, affecting brokers, suppliers, and the credit structures that support them.”

As a result, credit policies are becoming more dynamic. Real-time exposure tracking and more nuanced customer assessments are now essential to mitigating risk in fast-moving markets.

2. Customer education is powerful risk management tool

One recurring theme was the importance of broker-led customer education. The more transparency customers have into market drivers, the more rational their decision-making process becomes, particularly when deciding on  contract timing or product structure.

Mike Wirkus emphasized the role of brokers as trusted advisors:

“Brokers are increasingly in a position where they have to explain not just the what, but the why. Helping customers understand how and why the market is moving builds trust and helps mitigate reactive decisions.”

Education empowers customers to take the long view, something that’s vital during turbulent price cycles.

3. Contract structing needs more clarity

Across the industry, contract structures have become increasingly complex, sometimes to the point where ambiguity makes it harder for everyone to make informed decisions. In volatile markets, this can create confusion and reduce alignment with customer goals.

Colton Evans noted that while volatility may feel like the “new normal,” the real challenge is that contract complexity has outpaced clarity. In his view, the next evolution isn’t about introducing more product types, it’s about making existing contracts and product structures easier to understand. Customers should be able to clearly see what they are signing up for, so that their agreements truly match their objectives, whether that’s price stability, optionality, or a balance of both.  

4. Technology is closing the gap between risk and response

Panelists also discussed how technology is enabling suppliers and brokers to respond faster to market signals. From automated exposure monitoring to real-time margin analysis and streamlined approval workflows, operational agility has become a competitive differentiator.

Colton Evans explained, “Having the right data at the right time allows teams to make informed decisions quickly—especially when market conditions are changing hour by hour.”

This operational precision supports smarter credit decisions and  allows for faster, more responsive customer support when market conditions shift suddenly.

5. Risk management is now a team sport 

In today’s energy market, managing risk is no longer the responsibility of a single department. It’s a cross-functional effort involving credit, operations, legal, sales, and partners. This broader alignment is essential to building resilience and being prepared for volatility, not just reacting to it. The panel concluded that while market risk can't be eliminated, it can be addressed more effectively through alignment, transparency, and proactive communication.

Final thought

The energy market's “new normal” demands more than static risk frameworks. It requires adaptable processes, informed collaboration, and strategic foresight. As volatility continues to reshape how we price, contract, and serve customers, the entire value chain, suppliers, brokers, and end-users must evolve together.