, United Kingdom
Job Family Group:
Posting Start Date:
August 9, 2021
Where you fit in
The Head of Market Risk Freight reports to the Head of Market Risk Management and is a member of the Market Risk Leadership team. They will be responsible for managing a team of two risk analysts, one in London and one in Houston, however this team is expected to grow in future. The Freight Market Risk Team is responsible for understanding the positions and strategies employed by the Freight trading business of Shell Trading and Supply, 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.
What’s the role
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 in order 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 the RDS group.
More specific responsibilities include:
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 wayDevelop 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 otherImprove 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.Define and advance analytical mindset and behaviours by providing support for training and learning opportunities to analysts to enhance their understanding of trade book strategies, complex deals, trading and risk mandates, and market fundamentals.
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.Able to collaborate and produce good quality output using virtual chains of command.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.Ability to coach and mentor team members as well as members of other teams who require knowledge or skills that Risk can provide.
What we need from you
We’re keen to speak from individuals with substantial 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. You’ll also call on your degree in Business, Economics, Mathematics, Science, Engineering or IT; or relevant workplace experience in the energy trading industry. Graduate degree a plus.
We also hope your CV will show as many of the following as possible:
Experience of leadership in a team or project; leader and adviser in implementing new processes with short-dated hard deadlinesKnowledge 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 factorsAn understanding of the additional complexities of LNG freight and the conversion process from gas to LNG and back againKnowledge of the infrastructure of the oil and LNG trading and supply industry such as oil and gas fields, terminals, pipelines and refineriesAn 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 themKnowledge of the structurally long and short regions for each product to understand the directions of flow and therefore freight demand centresThorough understanding of financial, commodity and energy markets, derivative instruments, and hedging techniques. Knowledge of options theory, risk of options, and trading strategies
Be able to demonstrate the following skills:
Good judgment skills and shall be able to provide advice, while balancing risk and value on a daily basisReliable, dependable and disciplined. Excellent attention to detail, methodical, organized. A trusted partner of the businessResilient when working under pressure, with the ability to prioritise tasks to meet key deadlines.Good judgement to provide advice, question discrepancies, escalate issuesContinuous improvement mindset; utilizing tools to streamline and automate work to boost efficiencyScientific mindset; identify, investigate, analyse, research, discuss, record, and resolve issuesLearner mindset; innovative and creative, excellent problem-solving capabilitiesA critical and strategic thinker, with a long term view on risk but with a short term and pragmatic view on implementation
Shell started operations in the United Kingdom more than 110 years ago. Since then we have grown into a leading innovative oil and gas company that rewards its employees by investing heavily in their careers and learning. Our people are our greatest asset, and our commitment to your career will see you thrive in a work environment that offers an industry-leading development programme. When your ideas travel, Shell will benefit and innovation will thrive. Shell has a key role to play in helping meet the UK’s growing energy demand, whilst using innovative technologies to develop cleaner energy. We are the largest FTSE 100 company in the UK by market capitalisation, and make a significant contribution to the UK economy. As well as processing 35% of the gas coming into the UK, we serve more than four million customers at our filling stations each week. Shell employs some 6,400 skilled staff as well as many contractors.
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