Organisational Context and Job Purpose
INEOS operates across Europe and has a significant overall energy demand to cover, as well as gas supply capacity in the North Sea. The primary role of the IET team is to ensure that energy trading and portfolio benefits are optimised for both the upstream and downstream parts of INEOS. Upstream gas production must be sent safely and securely sold to the best market possible, whilst downstream energy consumers require reliable and cost-effective supplies of energy to INEOS industrial complexes across Europe.
Reporting to the Head of Risk, the role of Market Risk is to bring a commercially aware and entrepreneurial mindset to the mid office function to ensure the trading control environment is designed and implemented effectively through robust policies and procedures and ensure they are adhered to.
IET has recently been moved to be part of the wider Energy group. A core part of its expanded role will be to assist the upstream portfolio to achieve maximum value for natural gas that is sold to European hubs (2022 market value of $1 billion). IET also performs an advisory role to other INEOS businesses to help them manage their energy exposure (gas ~$2 billion, power ~$1 billion, carbon ~$1 billion).
Environment/Context
The Market Risk position will independently identify, measure, and report on the level of economic/market risk from new business proposals, material contracts, and trading market conditions in order to advise the commercial teams on mitigation strategies and risk appetite.
IET has newly agreed and committed LNG business: $3bn liquefaction commitment. $1bn regasification commitment plus associated customer exposures and an NPV of over $700m. Will need to establish and then implement the market risk environment to understand economic exposures and implementation of portfolio and individual hedging strategies.
Ability to lead and resource market risk control development for new commodities as they arise in the strategy eg power and crude.
Accountabilities
Market Risk
- Lead and/or support systems strategies for the market risk and product control function with respect to exposure management and MI systems.
- Manage trade control systems where we use Allegro/Horizon/FEA
- Work closely with the Head of Risk, Front office, and Finance for effective allocation of trading risk capital (market, credit, cash)
- Bring mark to market principles to the control environment and interface with Finance to ensure effective reporting
- Supervise daily/weekly/monthly trading exposure and daily profit & loss reporting.
- Supervise KPI calculation and ensure reporting deadlines are met.
- Set up new exposure management or entrepreneurial trading books as required by the business
- Provide risk analysis in assessing new trading strategies, trading limits, and other business assessment of risk including stress tests, risk based cash flow predictions options valuation etc
Product/Trade Control
- Part of a team of trade performance analysts and manage resource requirements. Ensure high level of professionalism and competence in the team. Resourcing strategies and recruitment will likely be key in the medium term as we expand our trading activities.
- Ensure profits are allocated to correct profit centres within results. This will include paper hedging carried out on behalf of other INEOS businesses as required.
- Ensure reconciliation of management information to financial accounts is completed and issues are addressed.
- Manage month end close meetings with analysts, asset managers, business managers and team leaders. Ensure that all data are robust and results are understood.
- Support new business activities and ensure trade control aspects are covered in the assurance process.
- Provide project resource to set up new trade control processes as required
Education and experience
- BSc in mathematics, finance, statistics, accounting related field
- 8-10 years’ experience in a Market Risk or Leaadership of Product Control position
- Experience in building relationships with senior stakeholders
- Superior quantitative skills, applying statistical evaluation to explain variations of P&L risk
Technical Skills
- Strong understanding of commodities trading industry and markets
- Ability to provide accurate and relevant risk reporting and analysis to control activities of the trading team
- Ability to develop and maintain high standard risk reporting
- Apply machine learning models to check precisions of models and understand the relation between elements in trading portfolios
- Capable of being independent and 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 understanding of financial accounting including accruals and mark to market
Behavioural Skills
- Ability to challenge sensitive issues constructively whilst maintaining strong working relationships
- Proactively identify and communicate potential issues with the appropriate teams or stakeholders. Make sure problems raised are followed up and worked on until completion
- The job holder will be versatile and enjoy working within a team environment.
- High energy levels and a hands-on approach
- Highly driven, determined & hard working – able to deliver against tight deadlines
- Excellent people skills to interact with external and internal contacts both at executive level and a technical level
- Excellent verbal, written and presentation communication skills
- A critical and strategic thinker, with a long-term view on risk but with a short-term and pragmatic view on implementation
Performance Indicators
- Business will receive appropriate compensation for the risk they take
- All trading activity remains within mandated limits and not exceeded
- Implement a suite of controls to mitigate various types of operational risk
- Trading team achieved results versus targets – responsible for producing sound trading strategies with attractive risk/reward parameters
- Delivery of timely and robust reporting and analysis for both the trading team and wider IET business
- Satisfied key stakeholders