Job Summary

A Risk Manager plays a critical role in identifying, assessing, and managing risks related to market volatility, interest rate fluctuations, credit, and liquidity exposure. This role requires deep expertise in financial markets, risk assessment methodologies, and the ability to design frameworks that ensure the organization’s market positions remain within acceptable risk limits. They should be analytical, proactive, and well-versed in market dynamics and regulatory requirements. This role also involves close collaboration with trading, portfolio management, compliance, and executive teams to protect the firm’s assets and enhance financial resilience.

Market Risk Assessment & Analysis

• Identify, measure, and monitor market risk exposures in areas such as interest rate risk, currency risk, commodity risk, and equity price risk.
• Conduct daily, weekly, and monthly assessments of market risk using tools like Value-at-Risk (VaR), stress testing, and scenario analysis.
• Analyze market movements and trends to assess the potential impact on the organization’s portfolios and trading positions.

Risk Framework Development

• Develop and implement a comprehensive market risk framework that aligns with the company’s risk appetite and regulatory requirements.
• Define and enforce risk policies, limits, and controls across asset classes, ensuring that exposures remain within established guidelines.
• Collaborate with senior management to integrate risk management practices into investment strategies and decision-making processes.

Monitoring & Reporting

• Monitor daily trading activity to ensure adherence to risk limits and report any breaches to senior management.
• Prepare and present regular risk assessment reports, highlighting market exposure, risk concentrations, and vulnerabilities.
• Work closely with the trading desk to review positions and assess the risk impact of any new investment or hedging strategies.

Stress Testing & Scenario Analysis

• Design and perform stress tests to evaluate the resilience of portfolios under adverse market conditions.
• Develop scenario analyses to understand the impact of extreme market events on portfolio performance and capital requirements.
• Report findings to management and make recommendations for adjustments to risk exposure based on stress test results.

Risk Model Validation & Improvement

• Validate and enhance risk models to ensure accuracy and reliability, including VaR models, factor models, and liquidity risk models.
• Regularly review risk models for appropriateness and adjust parameters as needed to reflect current market conditions.
• Collaborate with quantitative analysts and data scientists to improve model accuracy and incorporate new market data.

Compliance & Regulatory Liaison

• Ensure compliance with regulatory frameworks, including Basel III, Dodd-Frank, and other financial regulations related to market risk.
• Liaise with regulators, internal audit, and compliance teams to ensure adherence to market risk policies and procedures.
• Prepare for and participate in audits, regulatory reviews, and internal risk assessments.

Liquidity & Funding Risk Management

• Monitor liquidity risk by assessing funding needs, cash flows, and the impact of market conditions on liquidity.
• Establish guidelines for managing liquidity risk, including the management of liquid assets and funding sources.
• Work with treasury teams to ensure appropriate liquidity coverage ratios and maintain sufficient capital reserves.

Risk Culture & Training

• Foster a strong risk management culture throughout the organization by promoting awareness and understanding of market risk.
• Conduct training sessions for traders, portfolio managers, and other staff on risk management practices, tools, and compliance.
• Provide guidance on risk management tools and ensure the team is up-to-date with the latest industry best practices.

Technical Skills

• Proficiency in risk management software and platforms (e.
g., Bloomberg, MSCI RiskMetrics, SAS, or Python for quantitative analysis).
• Strong quantitative skills, including knowledge of statistical and econometric modeling techniques.
• Experience with SQL, R, or Python for data manipulation, modeling, and analysis is preferred.

Analytical & Problem-Solving Skills

• Strong analytical skills with the ability to assess market risk exposure and develop insights into potential impact.
• Ability to identify complex risk factors and recommend effective mitigation strategies.
• High attention to detail and accuracy, especially when working with large datasets and financial models.