| Resumo: | This study conducts a field research on the Portuguese energy firm, Rede Eléctrica Nacional, S.A. (REN), with the purpose of analysing whether and how a risk management strategy impacts the group’s business. Throughout the paper numerous crossings between previous empirical researches and REN’s case study are conducted which lead us to conclude that hedging allows lower cash flow volatility and a more secure investment rating. However, the particularity of REN’s hedging structure by incorporating the risk management of assets into its strategy is the main influential factor for creating a seamless stream of cash flow while eliminating risk. |
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