Wayne Penello and Andrew Furman

Wayne Penello and Andrew Furman

Wayne Penello is the president and founder of Risked Revenue Energy Associates (R^2 or “R squared.”) He has forty years of market-making, option-trading, and asset management experience in the energy industry. Penello was formerly a research scientist. He holds a master’s degree in marine sciences from Stony Brook University and an undergraduate degree in marine biology from Southampton College

Andrew Furman has thirty-five years of experience in energy and trading. For the past ten years at R^2, he has delivered hedge solutions to senior management of public corporations, private firms, institutions, and utilities. After serving as a managing director at two hedge funds, he assisted in the growth of R^2 through the deployment of its patented analytics. A risk-management and financial-engineering expert, Furman received a bachelor of science degree in chemical engineering from MIT


Risk Is An Asset - book cover

Risk Is An Asset: Turning Commodity Price Uncertainty Into A Strategic Advantage

Publication Date: August 2020

Wayne Penello and Andrew Furman have spent the better part of forty years investigating traditional hedging practices and innovating a better solution. And that innovation put them on a path to invent a groundbreaking approach to hedging.

Risk Is an Asset tells the story of that invention, and it will transform the way you think about hedging strategies. What you will learn by reading this book is that effective hedging is not a decision, it is a process they call “Process Risk Management,” or PRM. It is guided by risk metrics expressed in the same budgetary terms used to measure the success of your business. PRM helps each firm maintain focus on its own budgetary success and avoid the trap of trying to outguess the market.

Why is measuring risk in budgetary terms important? Because if you measure the wrong things, you are unlikely to get the results you want.

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