The Risk Manager will be responsible for overseeing and managing the risk exposure related to the physical oil trading business. This includes monitoring, identifying, and mitigating risks associated with market volatility, geopolitical factors, and operational risks inherent in physical oil transactions. The role requires an individual with a strong understanding of both the oil market and risk management strategies, ensuring that the company’s trading activities are aligned with risk tolerance and compliance standards.
Key Responsibilities:
- Risk Monitoring & Analysis: Monitor and analyze risks across physical oil trading activities, including market, counterparty, operational, and liquidity risks.
- Risk Assessment: Identify key risk factors affecting the physical oil trading portfolio, including pricing volatility, supply chain disruptions, geopolitical issues, and regulatory changes.
- Risk Mitigation: Develop and implement strategies to manage and mitigate risks, using hedging, diversification, and other financial instruments where appropriate.
- Reporting & Documentation: Provide regular risk reports to senior management, highlighting potential issues and recommending corrective actions. Maintain up-to-date risk documentation and ensure compliance with internal policies and regulatory requirements.
- Collaboration: Work closely with the trading, finance, and operations teams to ensure effective risk management practices are integrated into daily trading activities.
- Scenario Analysis & Stress Testing: Perform scenario analysis, stress testing, and risk simulations to evaluate the potential impact of various risk events on the firm’s portfolio.
- Regulatory Compliance: Ensure adherence to all relevant local and international regulatory requirements concerning risk management in physical oil trading activities.
- Continuous Improvement: Keep up to date with industry best practices in risk management and continuously improve risk management frameworks to adapt to changing market conditions.