This role is responsible for identifying, assessing, monitoring, and advising market, credit, and operational risks associated with the company's commodity trading activities. The role ensures that trading activities are conducted within approved risk appetite, governance frameworks, and regulatory requirements while supporting commercial performance and capital protection.
Responsibilities:
1. Market Risk Management
- Monitor commodity price exposure, volatility, and position limits.
- Assess Value at Risk (VaR), stress testing, and scenario analysis.
- Ensure compliance with approved trading mandates and exposure limits.
- Provide independent oversight of trading positions and hedging strategies.
2. Credit Risk Oversight
- Evaluate counterparty creditworthiness and recommend credit limits.
- Monitor exposure to counterparties and ensure adherence to approved limits.
- Coordinate with Finance on collateral management and guarantees.
- Identify and escalate potential credit risk concerns.
3. Operational & Settlement Risk
- Review trade lifecycle processes to identify operational risk gaps.
- Monitor documentation accuracy, settlement integrity, and reconciliation controls.
- Collaborate with Operations to strengthen internal controls.
4. Risk Reporting & Analytics
- Produce daily exposure, pricing, and P&L statements for the trading team, as well as weekly and monthly risk and P&L reports for senior management.
- Provide analysis on portfolio exposure, profitability risk, and liquidity risk.
- Present risk dashboards and metrics to executive leadership.
5. Hedging & Risk Mitigation
- Evaluate effectiveness of hedging instruments and strategies.
- Support traders in structuring risk-balanced deals.
- Ensure hedging policies are consistently applied.
6. Governance & Compliance
- Ensure alignment with internal risk frameworks and regulatory standards.
- Support internal and external audits related to trading risk.
- Maintain documentation and risk control policies.
7. Strategic Advisory
- Provide risk insights to support expansion into new commodities or markets.
- Advise leadership on risk appetite calibration and capital allocation.
- Contribute to continuous improvement of risk management frameworks.
