The liberalization steps taken by the European Commission have triggered changes in the actions, strategies, and assessments of European electricity trading companies to address the newly emerged risks along the electricity trading value chain. The management of market price and credit risks remains the focus of all European electricity trading companies and is still not a routine matter. Significantly increased raw material prices, further cuts by EU regulators, and the introduction of emissions trading continually present new challenges for European electricity traders. This study shows that the quality and capabilities of risk management depend on both the risk policy orientation and the revenue strength of the companies. The direction in which risk management in wholesale electricity trading will develop in the coming years is uncertain.