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Head of Risk Management Strategy
2 months ago
Job Overview
POSITION TITLE: Head of Risk Management Strategy
REQUISITION NUMBER: CFO004R
DEPARTMENT: Strategic Planning and Risk Management
LOCATION: Kansas City, MO
SALARY RANGE: $140,000 - $186,600
Work Schedule: Monday - Friday, 8:00 a.m. - 5:00 p.m. (additional hours may be required)
Primary Responsibilities:
The Head of Risk Management Strategy will report directly to the Senior Director of Risk Management and will play a pivotal role in the establishment of a comprehensive risk framework through quantitative analysis.
This role is essential in ensuring that new business strategies are in alignment with overall portfolio performance expectations while adhering to acceptable risk thresholds.
The position demands extensive knowledge of commodity market dynamics, tradable instruments, and risk management practices specific to the Energy Trading sector. The individual will collaborate with management to develop, assess, and refine the portfolio strategy based on predefined risk scenarios. Additionally, this position will oversee a team of up to three Risk Analysts.Key Responsibilities Include:
Energy Risk Management Strategy
- Formulate and implement portfolio optimization techniques to guide hedge strategy decisions while balancing risk-adjusted revenue. This includes hedging strategies such as DART optimization, CRR/FTRs, Credit and Collateral management, and term hedge and PPA transactions. Conduct daily and weekly portfolio evaluations to uncover opportunities for maximizing profits and identifying risks.
- Engage with internal departments to integrate long-term fundamental perspectives into short-term risk mitigation trading strategies.
- Assist in the quantification and valuation of hedges, EMAs, and other structured transactions for contract negotiations and deal modeling.
- Design trading strategies for REC, Capacity, Resource Adequacy, and transmission hedging.
- Develop trading and hedging strategies for Power, Natural Gas, and REC.
- Create gross margin at risk models for projects with market price exposure, focusing on prompt month to five years forward, to inform hedging and risk mitigation strategies within established Energy Risk Management policies.
- Establish portfolio risk limits and maintain portfolio-level risk metrics that account for cross-market correlations in energy, congestion, and REC prices.
- Conduct stressed and scenario analyses for Market and Credit exposure, identify risk-reducing strategies, and monitor/report on the execution of hedging/optimization activities.
- Review forward market price volatility curves and correlation assumptions for stochastic risk modeling.
- Facilitate performance benchmarking of trading strategies and establish risk limits.
- Collaborate with senior executives to define appropriate hedging and risk management strategies for both renewable and conventional assets.
- Create insightful market dashboards utilizing Power BI or similar tools.
- Participate in discussions at the Risk Oversight Committee alongside senior leadership.
- Prepare and present risk issues and stressed risk measures to the Risk Oversight Committee during meetings.
- Work closely with the Senior Director of Risk Management to ensure compliance with risk policies.
- Lead the development of management reports that present positions and exposures.
Qualifications:
A degree in Engineering, Mathematics, Economics, Business, or a related quantitative or finance discipline is required. A minimum of 7-12 years in progressively responsible Risk Management roles, particularly within the Energy Trading sector, is essential.
Skills and Competencies:
- In-depth knowledge of US Electricity markets and power systems, with direct experience in at least one ISO market.
- Proficient in developing predictive models using mathematical and statistical methods to identify, analyze, and mitigate energy market risks, with a solid understanding of option valuation and Greeks.
- Extensive experience in at least one programming language, preferably Python or R, with a proven track record of developing complex statistical models and implementing them into production systems.
- Ability to construct Quant Lib utilizing stochastic calculus and Option Models for deal valuation.
- Strong SQL and data mining capabilities.
- Ability to build power fundamental models for pricing, load, generation, flow, and outages using various methodologies.
- Expertise in extracting, manipulating, and analyzing large datasets relevant to the energy market to develop complex trading algorithms.
- Familiarity with regulatory expectations and industry standards regarding risk management practices, including risk management modeling.
- Experience in valuing and transacting transmission hedging products.
- Strong relationships with credit professionals, both internally and externally, to ensure adherence to established credit and risk policies.
- Excellent written and verbal communication skills, with the ability to convey complex issues clearly and concisely.
- Highly proficient in Microsoft Word, Excel, and PowerPoint.
- Strong business acumen and financial insight to support a high-performance organization in achieving operational excellence and financial targets.
- Ability to perform effectively under pressure in a demanding environment and occasionally work extended hours to meet project deadlines.
- Creative thinking, ability to manage competing priorities, work independently, and attention to detail.
- Self-motivated and highly organized.
Licenses and Certifications:
None required.
Working Conditions:
This position is office-based and may require additional hours on short notice.
Disclaimer:
The information provided above is intended to convey the general nature and level of work performed by employees in this classification.
It is not designed to be a comprehensive inventory of all duties, responsibilities, and qualifications required of employees assigned to this role.