Risk Management - Market Risk

Market Risk is concerned with measuring and limiting Macquarie’s exposure to adverse movements in market rates - stock prices, commodity prices, interest rates, and foreign exchange rates. Due to the diversity and complexity of the products that Macquarie trades, this is a constantly challenging responsibility, but one that is pivotal to the Macquarie way of doing business.

On a daily basis, Market Risk is responsible for setting, monitoring, reporting and enforcing risk limits across all the trading areas of the Group. In addition, Market Risk approval is required on all new deals and products prior to trading. Whether it is an innovative exotic derivative structure, or the purchase of an entire trading business, Market Risk analysts work closely with the front office to ensure that the risks arising from the new venture are fully understood, and adequately constrained.

As a part of the Market Risk team you will:

• Be directly responsible for monitoring and reporting risk metrics on a daily basis to senior management, including the Managing Director. In doing so, you will gain exposure to a wide range of businesses and products from around the globe.
• Interact constantly with the front office traders to ensure that the market risks arising from day-to-day trading positions are fully understood and managed appropriately within the limit framework.
• Liaise with back office and support staff to ensure that the trading systems adequately represent the risk profile of the trading books, and that risk numbers are reported in an accurate and timely manner.
• Be involved in the approval of new products, businesses and trading strategies. This could be anything from a complex funding structure originated out of the Johannesburg office, to the acquisition of an electricity trading business in Houston.
• Be immersed in the global financial markets. Understanding what drives financial markets - be that equity or commodity, fixed income or foreign exchange - and keeping abreast of market news and trends is a vital part of understanding and identifying potential risks.
• Assess the appropriateness of mathematical derivative pricing models within the context of real-world market conditions. A model is only as good as its underlying assumptions - an important part of Market Risk's role is to determine whether new pricing models are appropriate for a particular financial instrument or market.
• Be part of a global team with staff in Sydney, Hong Kong, London and Houston.