What is this role? - Market Risk Manager
Overall Responsibility:
Market Risk Manager will lead a team of professionals responsible for managing, controlling, and reporting market risks associated with trading of gas, power, and renewables. The role involves close collaboration with front office, Middle office, and back office to ensure alignment with trading strategies and risk management processes liaising with the Head of Risk Management. This role requires the continuous, accurate analysis and reporting of market risks, including interpreting market trends and various risk metrics.
During Spin-off, the head of Market Risk will oversee the company's market risk from a control perspective to ensure that risks are managed as new systems and organizational structures are introduced. Post Spin-off, this role will focus on advancing market risk measurement and management processes, primarily for the Gas & Power Department, to support the company's growth.
Key Responsibilities:
1. Day-to-day market risk oversight:
Monitor Actual Risk, Annual Loss, PnL, position, VaR, liquidity risk, ensuring these stay within approved limits and investigating any exceptions or concerns. Provide recommendations to the Head of Risk Management if necessary.
2. Reconcile PnL, including the evaluation of prices for accurate PnL and position calculations.
Risk Limit Review and Documentation:
1. Conduct annual (or as needed) reviews of risk limits such as Actual Risk, Annual Loss, position, VaR, liquidity Risk to optimize market risk management.
2. Prepare internal documentation to support the renewal and development of risk limits, maintain market risk management models, and conduct VaR backtesting.
New Business Risk Management:
1. Apply a combination of risk management expertise and commercial awareness to support business objectives, balancing both risk and commercial perspectives.
2. Define risk appetite metrics and limits for new business transactions, supporting preparation of New Transaction Committee (NTC) documentation, and coordinate with relevant teams such as the front office and IT to implement developments into the ETRM system.
Cross-Functional Risk Projects:
1. Lead or collaborate on projects that involve diverse risk types, such as credit, operational, compliance, and legal risks, along with related risk frameworks, governance, and controls. Cooperate with relevant teams to ensure comprehensive risk management.
Framework and Culture Development:
1. Actively work with the Head of Risk Management and the Credit Risk team to enhance the risk management framework and foster a risk-aware culture within the organization.
2. Promote transparency and proactive risk management across departments, ensuring accurate and timely recording of new business transactions and risks within the company's risk management system.
Team Leadership and Mentorship:
1. Lead, mentor, and motivate a team of market risk analysts, providing strategic insights, risk assessments, and guidance.
2. Serve as a crucial bridge to the Head of Risk Management, delivering assessments and strategic advice to enhance overall risk management and organizational growth.
Ideal Candidate Profile:
1. Market Risk Expertise in Energy Trading:
Extensive experience in market risk management, preferably within energy or commodities trading environments.
2. In-depth knowledge of gas, power, and renewable, including both physical and financial derivatives, such as futures, swaps, and options.
3. Preferably familiar with Power Purchase Agreement (PPAs), gas storage facilities, and batteries in the UK and EU regionals.
Analytical Accuracy and Quantitative Insight:
1. Strong knowledge of risk management methodologies with demonstrated effectiveness in energy trading markets.
2. Proficiency in risk metrics, such as VaR, position management, and liquidity risk with a high degree of attention to detail.
3. Ability to translate quantitative data into actionable insights.
4. Proficiency in ETRM systems and familiarity with transaction workflows in a trading environment.
Communication & Leadership:
1. Excellent communicator with the ability to collaborate across all organization levels including front office, back office, and senior management.
2. Proactive in identifying, raising, and discussing potential issues to ensure risks are managed promptly.
3. Proven ability to lead, mentor, and build a cohesive market risk team with a focus on cultivating a collaborative, risk-aware environment.
4. Experienced in driving organization-wide initiatives and fostering a culture of continuous improvement through open communication and strategic discussions.
Trend Awareness and Adaptability:
1. Strong awareness of industry trends and developments in energy trading and risk management.
2. Adaptive to market conditions and organizational changes, with commercial acumen to align risk strategies with business goals.
3. Skilled in interpreting market trends and incorporating them into comprehensive risk assessments.
The scope of this role is dynamic and is not limited to the responsibilities set out above. It will evolve over time and as a result of further organization reviews.
Ideal Candidate Qualifications:
1. Bachelor's degree, preferably in a quantitative discipline such as Finance, Economics, Mathematics, or Engineering.
2. 5+ years of experience in market risk management, preferably within the energy trading industry. 3+ years of experience in managing junior resources.
3. Advanced skills in data modeling and programming (e.g., Python, SQL, Power BI, and Excel VBA) is a plus.
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