Junior Oil & Gas Market Risk Analyst
The client, a major international commodity trader, is seeking Oil & Gas Market Risk Analysts at junior career levels, including recent graduates with stellar quantitative/hard science academics, for roles in New York and Houston. Path to trading. Salary range $90,000 to $130,000, depending on experience. Must have Bachelor’s, working to Master’s.
Hiring manager comment: We can use a few people. Either high potential people that can do commercial one day or individuals that may have more of an accounting mindset that are excited to sit next to traders and be a long-term person in the group. Likely need most for a physical-type trading book but prior risk experience not required. Happy to take on people that are bright and can learn.
Specific key job functions of a Risk Manager
1. Accountable for providing deep understanding of risk controls through the delivery of value-added analysis and reporting
2. Sit next to traders/physical operations and estimate the risks associated with the transactions before/after deal execution based on market and internal information.
3. Coordinate the creation of valuation methodologies for physical/paper exposures for use in daily mark-to-market (MTM) valuation in daily PL leveraging existing knowledge and communication with traders. For options book utilize options theory for valuation/position/P&L reporting.
4. Submit hedge orders for the physical and derivative trades in a high-pressure environment where small mistakes can lead to large losses. Manage physical and paper trading positions and develop enhanced reports when necessary.
5. Assist risk management department in project initiatives using technical expertise in excel/vba/python/R and internal systems. Must innovate to create/improve processes that add value to the business
6. Show competency and perform ad hoc tasks for traders and market analysts to further inform commercial trading decisions
7. Review OTC trade booking on physical and paper accurately reflects deal points
8. Maintain an organized book structure to facilitate managements understanding of P&L and risk drivers
9. Experienced individuals may assist in managing team members to ensure daily deliverables are met and progress is made on projects
Specific mathematical or other technical knowledge/skills required to perform the task
1. Ability to review and analyze large amounts of data
2. Thorough understanding of system analysis, risk assessment, and control methods
3. Familiarity with industry compliance standards and regulations
4. Strong quantitative/financial acumen, and problem-solving skills
5. Energy market awareness
6. Ability to understand basic chemistry and capability to learn more in this discipline
7. Ability to understand finance options theory and learn more in this discipline
8. Familiarity with project management practices
9. The ability to explain complex issues and present technical information clearly
10. Ability to work independently and in a multidisciplinary setting
11. Microsoft Office Suite, VBA, other skills appreciated and utilized including Python, R, etc
12. Foreign language skills appreciated and used often for certain businesses
Explanation of the importance of the risk function in the commodities trading industry and specifically its function and importance in the client’s operations.
1. The client relies heavily on its risk managers as they are the gatekeepers for much of the information going into and coming out of the trading system. They sit next to the traders and physical operations in order to maintain optimal information flow.
2. They must understand all the details and market risks that are generated at deal execution and may be relied upon to be a second pair of eyes on trading strategies prior to execution.
3. They perform daily hedging and coordinate the communication process among traders/ops/finance to ensure futures orders are executed appropriately. Mistakes can easily cost material sums of money that can end an individual’s career at the client.
4. The client’s balance sheet and profit/loss statements are directly impacted by the valuations assigned by the risk manager so they must understand the market and business well in order to calculate reasonable MTM values. They must be trusted to be independent and not misstate valuations.
5. The client sees the risk management role as an area to grow a career. Individuals can move up the risk management ladder, transition to market analysis, physical operations or possibly become a trader. The risk role requires discipline, organization, communication, drive, quantitative ability, understanding of petroleum chemistry, and the fundamental variables that generate profit/loss which are critical foundations for success in any role at the client.
6. Great risk managers provide additional value by leveraging their understanding of the business/market to assist traders by supplementing the information gathering and trader decision making processes. They also propose new ideas for generating profits.
If the decision makers determine a risk manager is not competent, they do not remain in the role becaus