Quantitative Risk Analyst - Power
Overview
Join a dynamic and fast-paced trading environment where time-sensitive, business-critical tasks require ad-hoc analysis and the creation of risk reports. This role is part of a global risk control team spanning multiple locations, working closely with Front Office, Structuring, Origination, Back Office, Finance, Compliance, and Trading System teams.
The team operates across various energy markets, including natural gas, LNG, LPG, U.S. power, emissions, and dry bulk products. The Middle Office plays a crucial role in calculating profit and loss (P&L) and managing trading risks while ensuring robust market risk control across different asset classes.
Key Responsibilities
- Ensure compliance with internal trading limits and external regulatory requirements.
- Independently analyze, assess, and report risk positions and trading results.
- Develop and implement quantitative risk models and metrics for trading activities.
- Oversee and enhance Value at Risk (VaR) models, ensuring accurate position assessments and deep understanding of trading product structures.
- Construct and maintain forward curves, pricing formulas, and associated metrics within the ETRM system.
- Evaluate structured transactions and risk exposure across various asset classes.
- Monitor physical and financial trades across multiple product types, including real-time, day-ahead, congestion (CRR, FTR, PtP Trading), and energy storage optimization.
- Collaborate with Middle Office analysts to assess mark-to-market valuations, risk positions, spread movements, and P&L fluctuations.
- Develop and refine risk reporting frameworks to provide insight into trading positions and market exposure.
- Conduct ongoing enhancements to risk models, testing new calculations, and refining valuation techniques.
- Work directly with traders to quantify portfolio risks and communicate key risk drivers.
- Provide detailed risk assessments and reporting to senior management, including contributions to internal risk committees.
- Partner with teams across Back Office, Finance, Credit, Legal & Compliance, and Business Unit Control to enhance risk control processes and ensure policy adherence.
- Support compliance initiatives by aligning risk practices with regulatory requirements.
- Identify and contribute to process improvements, assisting with development, testing, and implementation of risk management enhancements.
Role Scope & Reporting
This role is part of the Global Risk division, reporting to the Middle Office Supervisor and Head of Risk Control. The position is based in Houston and will oversee risk exposure, P&L, and key metrics for trading desks, with a focus on power markets.
Candidate Qualifications
- Bachelor's degree in Mathematics, Statistics, Physics, Engineering (Electrical), Economics, or Quantitative Finance (Master's preferred).
- 3-5 years of experience in energy trading risk analysis.
- Strong background in developing models related to commodities, such as discounted cash flow, storage, transmission, power generation, and congestion risk analysis.
- Deep understanding of risk management methodologies and valuation frameworks.
- Experience with power flow models for validating risk assessments.
- Ability to analyze and manage congestion risk (CRR/FTR) using appropriate risk metrics.
- High level of accuracy and efficiency under tight deadlines.
- Proficiency in programming languages used for data science, such as Python or R.
- Strong interpersonal skills and adaptability to flexible work hours.
This is a great opportunity to work in a global risk control function within a complex energy trading environment, contributing to high-impact risk management strategies.
