Energy Trading and Risk Management Analyst Job Description [Updated for 2025]

In the modern world, the role of Energy Trading and Risk Management Analysts is more crucial than ever.

As the energy sector evolves, there is a growing demand for skilled professionals who can navigate, develop, and safeguard our energy trading and risk management strategies.

But let’s delve deeper: What’s truly expected from an Energy Trading and Risk Management Analyst?

Whether you are:

• An aspiring candidate trying to understand the core responsibilities of this role,
• A recruiter designing the perfect job specification,
• Or simply fascinated by the intricacies of energy trading and risk management,

You’re in the right place.

Today, we present a comprehensive Energy Trading and Risk Management Analyst job description template, designed for effortless posting on job boards or career sites.

Let’s dive right into it.

Energy Trading and Risk Management Analyst Duties and Responsibilities

Energy Trading and Risk Management Analysts are responsible for managing and analyzing the risk in energy trading activities.

They use advanced mathematical and analytical techniques to help their organizations make informed decisions about energy trading and risk management.

Their duties and responsibilities include:

• Assess and analyze the current energy market trends and prices
• Develop and implement risk management strategies and procedures
• Use statistical models to predict future market trends and identify potential risks
• Analyze the impact of energy trades on the overall portfolio risk
• Prepare risk management and trading reports for management
• Collaborate with traders to understand the risk profile of current and potential trades
• Recommend trading strategies based on risk analysis
• Monitor and report on the performance of trading strategies and risk management procedures
• Ensure compliance with energy trading regulations and standards
• Maintain knowledge of current developments in the energy market and risk management field

 

Energy Trading and Risk Management Analyst Job Description Template

Job Brief

We are seeking a knowledgeable and detail-oriented Energy Trading and Risk Management (ETRM) Analyst to join our team.

The ETRM Analyst will be responsible for analyzing and managing the risks associated with energy trading activities.

The successful candidate will have an understanding of energy markets, be proficient in risk assessment and have the ability to make sound decisions under pressure.

They will work closely with the trading team to develop strategies, monitor market conditions, and ensure compliance with risk management policies and procedures.

 

Responsibilities

• Analyze and assess the risks involved in energy trading activities
• Monitor and report on market conditions and trends
• Develop and implement risk management strategies and procedures
• Collaborate with the trading team to optimize trading positions
• Manage and maintain energy trading systems and software
• Ensure compliance with regulatory requirements and internal policies
• Prepare risk management and trading reports for management
• Analyze financial data and develop financial models for decision support
• Recommend ways to reduce or manage risk

 

Qualifications

• Proven experience as an ETRM Analyst or similar role
• Knowledge of energy markets and trading practices
• Strong analytical skills with the ability to collect, organize, analyze, and disseminate significant amounts of information with attention to detail and accuracy
• Strong numerical skills and financial acumen
• Proficiency in risk assessment and management
• Familiarity with financial software
• Excellent communication and presentation skills
• BS degree in Finance, Economics or related field

 

Benefits

• 401(k)
• Health insurance
• Dental insurance
• Retirement plan
• Paid time off
• Professional development opportunities

 

Additional Information

• Job Title: Energy Trading and Risk Management Analyst
• Work Environment: Office setting with options for remote work. Occasional travel may be required for team meetings or industry conferences.
• Reporting Structure: Reports to the Energy Trading and Risk Management Director.
• Salary: Salary is based upon candidate experience and qualifications, as well as market and business considerations.
• Pay Range: $85,000 minimum to $120,000 maximum
• Location: [City, State] (specify the location or indicate if remote)
• Employment Type: Full-time
• Equal Opportunity Statement: We are an equal opportunity employer and value diversity at our company. We do not discriminate on the basis of race, religion, color, national origin, gender, sexual orientation, age, marital status, veteran status, or disability status.
• Application Instructions: Please submit your resume and a cover letter outlining your qualifications and experience to [email address or application portal].

 

What Does an Energy Trading and Risk Management Analyst Do?

Energy Trading and Risk Management Analysts, also known as ETRM Analysts, typically work for energy companies, trading firms, or consulting companies.

They can be an integral part of an organization’s risk management team.

Their primary role involves performing detailed quantitative analysis to provide insights into the complex nature of energy markets.

This can involve predicting future energy prices, assessing risks associated with energy trading, and identifying potential trading opportunities.

ETRM Analysts also monitor and analyze market conditions, including trends in energy prices, and geopolitical events that may impact energy supply and demand.

They utilize complex mathematical models and statistical techniques to forecast market behavior.

They often work closely with energy traders to develop trading strategies and manage portfolio risks.

This involves careful analysis of market data and risk exposure, as well as developing models for energy pricing and trading.

Furthermore, ETRM Analysts are responsible for ensuring compliance with energy trading regulations and standards.

They may also assist in the design and implementation of risk management systems and processes.

In addition, they may present their findings and recommendations to senior management, helping guide strategic decisions related to energy trading and risk management.

 

Energy Trading and Risk Management Analyst Qualifications and Skills

An Energy Trading and Risk Management Analyst should possess a range of technical and soft skills that align with the demands of this specialized role, including:

• Strong analytical skills to effectively assess market trends, financial data and risk assessments in energy trading.
• Deep knowledge of the energy market, trading principles, and risk management strategies.
• Proficiency in using energy trading and risk management software to perform market analysis and manage trading operations.
• Excellent numerical skills to understand and interpret complex financial data and statistics.
• Strong communication skills to clearly explain trading strategies, risks, and market analysis to stakeholders and team members.
• Good decision-making skills to make sound judgments under pressure, often within tight deadlines.
• Detail-oriented approach to accurately track and record trading transactions, as well as to identify and mitigate potential risks.
• Ability to work collaboratively in a team-oriented environment, often coordinating with traders, brokers, and regulatory officials.

 

Energy Trading and Risk Management Analyst Experience Requirements

To become an Energy Trading and Risk Management Analyst, experience can be gained in a variety of ways, often starting with entry-level roles within the energy sector.

Candidates may gain experience in energy trading or in more general roles such as Business Analyst or Energy Analyst.

Typically, entry-level positions may require 1 to 2 years of experience, which can be acquired through internships or part-time roles within the energy sector.

They often gain practical knowledge of energy markets, energy trading, and risk management principles.

Candidates with around 3 to 5 years of experience often have refined their expertise in energy markets, and have developed a deep understanding of risk management practices and energy trading strategies.

They may have experience with data analysis and modeling, regulatory compliance, and reporting.

Those with more than 5 years of experience are often well-versed in a variety of energy commodities, have a strong understanding of global energy markets, and are adept at identifying and mitigating risks associated with energy trading.

They may also possess managerial experience and have a track record of leading teams or managing large-scale projects.

Moreover, many roles prefer candidates to have experience with specific Energy Trading and Risk Management (ETRM) systems, such as Endur, Allegro, or Triple Point.

A master’s degree in economics, business administration, finance, or a related field can also enhance a candidate’s experience and competitiveness in the field.

Also, professional certifications like the Energy Risk Professional (ERP) or Financial Risk Manager (FRM) may also be beneficial.

 

Energy Trading and Risk Management Analyst Education and Training Requirements

To work as an Energy Trading and Risk Management Analyst, one typically needs a bachelor’s degree in a field such as finance, economics, business administration, or a related field.

They should have a strong background in quantitative analysis, along with knowledge of energy markets and trading principles.

Further, a deep understanding of risk management principles and techniques is critical, as the role involves measuring and managing risks associated with energy trading.

Some positions may require a master’s degree or MBA with a focus on finance, commodities, or energy.

Certifications such as Energy Risk Professional (ERP) from Global Association of Risk Professionals, Chartered Financial Analyst (CFA), or Financial Risk Manager (FRM) can be beneficial.

Experience with software tools used in energy trading and risk management, such as Endur, Allegro, or similar platforms, is often necessary.

Strong analytical skills, proficiency in using statistical software packages and databases, and familiarity with financial modeling are also desirable.

Continuing education and keeping up-to-date with industry trends and regulations is essential in this dynamic field.

 

Energy Trading and Risk Management Analyst Salary Expectations

An Energy Trading and Risk Management Analyst earns an average salary of $85,000 (USD) per year.

However, this amount may fluctuate depending on factors such as years of experience in the field, the specific location of the position, and the hiring organization’s size and nature.

 

Energy Trading and Risk Management Analyst Job Description FAQs

What skills does an Energy Trading and Risk Management Analyst need?

An Energy Trading and Risk Management Analyst should possess strong analytical skills, excellent numerical and quantitative abilities, and a good understanding of energy markets.

They should also be competent in using risk management software and tools, and have strong communication skills to interpret and present complex data in a comprehensible manner.

 

Do Energy Trading and Risk Management Analysts need a degree?

Yes, a bachelor’s degree in finance, economics, mathematics, or a related field is generally required for this role.

Some employers may prefer candidates with a master’s degree in business administration (MBA) or energy management.

Further, having relevant certifications in risk management can be an added advantage.

 

What should you look for in an Energy Trading and Risk Management Analyst resume?

A resume for this role should highlight a strong background in financial analysis, risk assessment, and energy trading.

Look for experience in using trading and risk management software, knowledge of energy markets and regulations, and proficiency in data analysis and forecasting.

Certifications in risk management and advanced degrees can also be beneficial.

 

What qualities make a good Energy Trading and Risk Management Analyst?

A good Energy Trading and Risk Management Analyst is analytical, detail-oriented, and has a deep understanding of energy markets and risk management principles.

They should have excellent problem-solving abilities, be able to work under pressure, and make informed decisions quickly.

Strong communication skills are also essential as they will need to present complex information to stakeholders and team members effectively.

 

Is it difficult to hire Energy Trading and Risk Management Analysts?

Hiring for this role can be challenging due to the specialized skills and knowledge required.

It’s important to find candidates who not only have the necessary educational background and experience but also have a strong understanding of energy markets and risk management.

Therefore, it may require a comprehensive recruitment process to attract and select the most qualified candidates.

 

Conclusion

And there you have it.

Today, we have illuminated the intricacies of what it means to be an Energy Trading and Risk Management Analyst.

Surprise!

It’s not just about analyzing data.

It’s about strategizing the energy trading landscape, one trade at a time.

With our comprehensive Energy Trading and Risk Management Analyst job description template and real-world examples, you’re primed to take the next step.

But why halt your journey now?

Delve further with our job description generator. It’s your secret weapon for creating precision-detailed job listings or refining your resume to excellence.

Remember:

Every trading decision is a crucial part of the wider energy market.

Let’s shape the future of energy trading. Together.

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