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Where you fit in
Based in either our London or Singapore office, the Market Risk Manager is part of the Freight Market Risk Team. They are responsible for understanding the positions and strategies employed by the Freight trading business of Shell Trading and Supply (T&S), as well as identifying and analysing freight exposures within the physical oil and LNG trading books. The team will develop the means for incorporating market risk from freight into the overall T&S risk metric landscape, creating visibility through meaningful reporting.
The purpose of the role is to independently identify, measure, and report on the level of risk from new business proposals, material contracts, and trading market conditions to advise the commercial teams on mitigation strategies and risk appetite. The role will provide risk assessments and insights to senior management while collaborating with and providing market specific information and advice to others in the global Finance and Risk Management organization. This includes the Valuation, Quantitative Analytics, Risk Management Operations, and Technical Accounting teams among others. The Freight Market Risk Team will provide an independent view as to whether the organization is receiving appropriate compensation for the risk they are taking.
The role works closely with risk leads for all parts of the risk management spectrum including a significant Business Operations component, regular discussions with Front Office, Commercial Operations, Finance, Compliance and Back Office, and a focal point for freight risk related queries from across Shell groups.
What’s the role?
You will be responsible for the following:
- Derive a vision for the team to aspire to and define a clear path to achieve the Freight Risk Team’s purpose and responsibilities, with milestone achievement steps along the way.
- Develop and apply fair economic value principles across the Freight trading business, coordinating across the global risk managers to ensure consistent application. This includes providing modelling support and challenge with stakeholders on valuation inputs and parameters.
- Ensure that all exposures generated are fully understood and that these exposures and resultant P&L are properly evaluated, validated, and analysed prior to any income being reported. Freight exposure can be explained in different ways, so it is key to be able to translate from one to the other.
- Improve Management Information reporting for the Freight business so that P&L and exposure is clearly explained, and underlying drivers are understood.
- Provide independent advice and guidance on the level of risk/return in the business and whether this is congruent with the agreed level of risk appetite.
- Identify risks, look at model and portfolio assumptions, market inputs, pricing issues, valuation parameters and instrument types.
- Produce ad-hoc analysis to explain P&L or exposure changes to Front Office, assist them with queries and requests for system setup changes.
- Provide analysis, review, and comments on New Business Proposals. Where applicable, provide peer review and challenge to the deal proposals for other businesses. Ensure that the systems and support functions are ready for when trading commences.
- Work on New Business Proposals for the physical oil and LNG trading desks that generate significant freight exposures to ensure that the risk from these exposures is well understood.
- Carry out the review and execution of SOX controls within their organization and manage communications with auditors after they are completed.
- Work with the Valuation and Quantitative Analytics teams to understand and model the embedded physical optionality of the time-chartered vessels and how optimization of physical portfolios changes exposures.
- Work with the Quantitative Analytics team to build a model to quantify short freight exposure in the physical oil and LNG trading books, and then compare this to the vessel length in the Freight trading books.
- Assist in limit setting & monitoring of the Freight business, but equally play a key role in limit setting globally across the Trading and Supply business. Ensure that all trading activities remain within mandated limits and escalate appropriately if they are exceeded.
- Actively manage resources & processes to optimise the efficient analysis of risk across the portfolio, manage change and prioritise accordingly.
- Promote a culture of continuous improvement across all levels of the organization by having courage to challenge established processes. This includes identifying inefficiencies in local and global operations and opportunities to streamline and automate shared processes and interfaces.
- Support digitalization and automation to smooth the flow of information across the business and to remove manual tasks. Currently much of the Freight reporting is manual so is a key area for improvement.
- Help with the roll out of VaR and other risk metrics across the freight business. Ensure that the results are comparable to the oil and energy trading desks.
- Develop stress tests and other quantitative analysis methods to help understand potential losses from implied freight exposures within the oil and LNG trading businesses.
- Produce content for and occasionally participate in the quarterly Risk Committee meetings with Senior Leadership. Powerpoint skills to produce presentations for Executive level presentations.
- Ensure that Market Risk fulfils its role as an independent “check and balance” function and is viewed as such by other parts of the organization.
- Implement Shell best practices in commodity trading risk management.
What we need from you
We are keen to hear from professionals with extensive experience within a trading and risk management organization, including a strong understanding of trading, operations, risk, compliance and mid/back-office business processes, policies, procedures and controls.
- Degree in Business, Economics, Mathematics, Science, Engineering or IT; or relevant workplace experience in the energy trading industry. Graduate degree a plus.
- Given the current tools in place, knowledge of Python, VBA and advanced Excel skills would be a distinct advantage.
- Experience of leadership in a team or project; leader and adviser in implementing new processes with short-dated hard deadlines.
- Knowledge of the shipping industry and freight trading markets such as the different pricing mechanisms for freight, ship types and uses, cost inputs to the price, supply and demand factors. An understanding of the additional complexities of LNG freight and the conversion process from gas to LNG and back again.
- Knowledge of the infrastructure of the oil and LNG trading and supply industry such as oil and gas fields, terminals, pipelines and refineries. An understanding of the fundamental economics and pricing mechanisms behind these physical assets and flows of oil and gas, and the trading strategies that relate to them. Knowledge of the structurally long and short regions for each product to understand the directions of flow and therefore freight demand centres.
- Thorough understanding of financial, commodity and energy markets, derivative instruments, and hedging techniques. Knowledge of options theory, risk of options, and trading strategies.
We also hope to see the following competencies:
- Capable of being independent from front office; able to objectively analyse and report risks and exposures. Regularly engage in discussion with traders and management about exposure taken and resultant P&L.
- Strong stakeholder engagement skills, having the self-confidence to challenge traders on deals, valuations, positions, limit mandates.
- Excellent communication skills; the role will require writing reports and policies and presenting analysis and insights to senior stakeholders. Due to the global nature of the business the role requires communicating using different methods, in a variety of formats, to people in many countries.
- Team player, good interpersonal skills. Flexible to work with colleagues across numerous time zones with both Market Risk at the Trading Hubs in London, Rotterdam, Houston, Dubai and Singapore; but equally the Business Operations centres in Chennai, Manilla, Bangalore.
- Ability to articulate and communicate complex scenarios and ideas in a clear and concise manner whilst understanding the perspective and experience of others. Ability to challenge sensitive issues constructively whilst maintaining working relationships.
- This is a role for a person who brings diversity of thought, who is not afraid to speak up and who is comfortable challenging senior stakeholders.
- Proactively identify and communicate potential issues with the appropriate teams or stakeholders. Making sure problems raised are followed up and worked on until completion.
- Working closely with the Credit and other Risk teams to ensure trading risks and returns are fully understood, captured and challenged where necessary. This will include longer term risks such as time-charters.
If you don't see yourself fully reflected in every job requirement listed on the posting above, we still encourage you to reach out and apply. Research has shown that not everyone often applies when they do not feel 100% qualified. We are committed to creating a more equitable, inclusive, and diverse company and we strongly encourage applicants of all genders, ages, ethnicities, cultures, abilities, sexual orientation, and life experiences to apply. We look forward to receiving your application.
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