Risk Management Analyst

Mercuria Energy Trading, Inc.

Documents

Individual state requirements may vary. Please contact your local apprenticeship office to ensure this version is suitable to your state’s requirements.

Work Process Schedule

Work Process Content

On the Job Training

Anonymous

Skills

Energy Trading Core Technical Competencies

Basics and fundamentals of energy trading
Vocabulary of Energy Trading.
The “what, why, how and who of trading”
Energy market structure and market participants
Relationship of fundamentals and futures
Technical and fundamental analysis
Market behavior
System development and testing.
NYMEX
Real time trading examples for all products in the energy infrastructure using the various technical tools and techniques
How all of the tools and techniques work
Knowledge & Understanding of various energy trading instruments, tools & techniques
How energy trading tools can be applied to the development of a successful trading program

Risk Management Technical Core Competencies

Business ethics and reputation risks; how these issues affect the structure of all publicly traded companies
Issues related to corporate social responsibility issues
History of the Securities and Exchange Commission and how it led to the Sarbanes-Oxley Act
Cutting-edge issues in compliance and regulatory risk including FASB 133 and an in-depth study of SOX
Legal and systemic risk; how these issues affect companies within the energy industry
Different types of market risk; how hedging of outright price risk results in basis and optionality risks
Different tools to manage market risk, including traditional, position-based tools such as stop loss placement and volumetric limits as well as portfolio-based tools such as mark-to-market, Value-at-Risk, stress testing and fixed fractional money management
Statistical theories; how they relate to calculation of Value-at-Risk including assumptions of a normal distribution as well as how non-normal distributions (skewness, kurtosis and stable Paretian distribution) effect Value-at-Risk calculations. Included are tools such as Extreme Value Theory and GARCH which are specifically designed for measuring the tail of a stable Paretian distribution
Models for Calculating Value-at-Risk including the Linear model, the Delta-Gamma model, the Historical Simulation model and the Monte Carlo Simulation model.
Theories of financial mathematics; how they relate to calculation of Value-at-Risk including the difference between a VaR measure, VaR model and a VaR metric. Portfolio mapping, inference procedures and transformation procedures
Modeling for price shocks and paradigm shifts
Implementation of broad-based and specific trading controls in order to reduce operational risk
Liquidity risk; how to integrate it within a dynamic market risk management program
Credit risk management issues, including various credit risk models (such as CVaR, KMV, Z-Score, Econometric, Actuarial and Rating Agency) and mitigation tools (including credit derivatives)

Related Instruction Outline

Risk Management Analyst

Work Process Content

Related Instruction Content

Similar Programs