Financial Risk Specialists

Finance

Level 4392 of 1200 points

Job description

Financial Risk Specialists

Job purpose

To analyse and measure exposure to credit and market risk threatening the assets, earning capacity and economic position of the organisation, and to document and communicate those risks and recommend ways of limiting them, so that decision-makers understand the risks being carried and can act on them.

Skills

Knowledge of financial markets, credit and market risk measurement, valuation and securities analysis, and of statistical and econometric method applied through statistical analysis software; also of legislation bearing on risk exposure and of risk disclosure in offer documents, kept current by consulting financial literature and monitoring developments in finance and economic theory. No distribution of qualifications held by incumbents has been surveyed; the occupation is classified at a level for which most entrants hold a four-year degree, with considerable related experience and several years of on-the-job or vocational training.
Confers with traders to identify and communicate the risks attaching to particular trading strategies and positions, meets clients on risk exposure, market scenarios and values-at-risk calculations, and advises other departments on statistical modelling. Produces reports and presentations explaining risk positions and recommending change, and drafts or reviews risk disclosures for offer documents; technical results must be made intelligible to non-specialist readers.
Quantifies risk through statistical analysis and econometric models, develops and implements risk-assessment methodologies, and devises scenario analyses reflecting possible severe market events. Identifies key risks and mitigating factors in potential investments — asset types and values, legal and ownership structures, customer bases, industry segments — and interprets data on price, yield and stability. Judgements concern uncertain future events, so method must be justified and assumptions made explicit.
Devises systems to monitor the continuing validity of risk assessments, maintains the data quality of risk management systems, tracks and reports market risk for traded issues, and develops contingency plans for emergencies. No survey evidence exists on deadline pressure or on whose framework sets priorities.
Work is carried out at a desk using statistical and spreadsheet software, including drawing charts and graphs for technical reports. No manual handling or dexterity demands are indicated.

Responsibilities

No line management is evidenced. Influence is exercised through advice — to traders on position risk, to other departments on modelling, and to clients on their exposure.
Holds no budget and commits no funds. Recommends investments and their timing to companies, investment firm staff or the public, prepares plans of action for investment, and recommends ways to control or reduce risk; the decision to act rests elsewhere.
Contributes to the development of risk management systems and maintains the data quality within them. Ordinary care of a workstation and analytical software; no responsibility for stock or plant.
Gathers risk-related data from internal and external sources, and owns the documentation of key risks, the risk-assessment models and the disclosures drafted for offer documents. Also evaluates the relative quality of securities within an industry and the environmental impact of new products on long-term profitability.

Effort required

Sustained analytical concentration on statistical and econometric modelling, scenario construction and the interpretation of market data, with judgement exercised on incomplete information about future market conditions.
The work context of this occupation has not been surveyed, so no exposure to conflict, hostility or distress is evidenced.
No physical effort is indicated by the tasks, which are analytical and desk-based. Posture and exertion have not been surveyed.

Working conditions

The tasks indicate office-based analytical work with client meetings, and no hazard or outdoor working. No work context data exists for this occupation, so conditions, noise, proximity and psychosocial exposure are unevidenced rather than absent.
Working hours, shift patterns, on-call expectations, seasonality, time pressure and degree of autonomy have not been surveyed and are not asserted here. The tasks indicate work shaped by the organisation's risk framework and by client demand, the recommendations made being acted on by others.

Skills

40% · 231 points▾

KnowledgeLevel 4 of 8
72 of 144 points
Factual and theoretical knowledge in broad contexts within a field of work. The job requires a range of thinking and practical knowledge to find solutions to specific problems in the job or study area.
Interpersonal and communication skillsLevel 3 of 5
58 of 96 points
Effective communication and interpersonal relationships. The job holder is required to adapt communication to different audiences and foster trust, cooperation and positive working relationships.
Problem-solving skillsLevel 3 of 5
58 of 96 points
Variable problems. The job involves dealing with different kinds of problems that require careful thinking, research into different options or adjusting existing ways of doing things. Guidance and resources may be limited.
Planning and organisational skillsLevel 3 of 5
43 of 72 points
Moderate organisational skills required. The job requires the organising and prioritising of multiple tasks, with some level of adjustment to plans on the basis of changing circumstances or deadlines.
Physical skillsLevel 0 of 5
0 of 72 points
Not applicable. The job does not require any particular physical skills (although there is likely to be some physical activity).

Responsibility

35% · 58 points▾

PeopleLevel 0 of 5
0 of 144 points
Does not apply. The job does not require any responsibility for people.
Goods and equipmentLevel 0 of 5
0 of 84 points
Not applicable. The job does not involve any responsibility for goods or equipment.
InformationLevel 3 of 5
58 of 96 points
Moderate responsibility for information. The job involves managing information to ensure it is accurate, of high quality and secure. The job holder may make decisions about the handling of sensitive data.
Financial resourcesLevel 0 of 5
0 of 96 points
Not applicable. The job does not require any responsibility for financial resources.

Effort

15% · 79 points▾

Mental effortLevel 3 of 5
36 of 60 points
High level of mental effort. The job involves frequent concentration on complex tasks that require considerable mental effort, such as interpreting complex data.
Psychosocial and emotional effortLevel 3 of 5
43 of 72 points
Moderate psychosocial and emotional effort. The job requires the regular management of emotional responses, such as dealing with sensitive or challenging individuals or situations.
Physical effortLevel 0 of 5
0 of 48 points
Not applicable. The job does not require any physical effort.

Working Conditions

10% · 24 points▾

Environment (physical, psychological or emotional)Level 1 of 5
17 of 84 points
Minimal exposure to hazards or stress. The job involves little or no exposure to physical hazards (e.g. chemicals, moving equipment, noise) and minimal emotional or psychological risks (e.g. occasional routine tasks with no emotional burden). There is minor exposure to dust, dirt, fumes, noise, waste, poor lighting, etc.
Organisational environmentLevel 1 of 5
7 of 36 points
Minimal organisational demands. The job requires standard working hours with no night shifts or irregular schedules. There is little or no need for travel or digital connectivity beyond typical working hours.