Turn on thread page Beta

Anyone know anything about market risk? watch

Announcements
    • Thread Starter
    Offline

    0
    ReputationRep:
    I've read some basic stuff on the role but I'm still confused.
    1) Do people working in market risk work on the trading floor or on the operations/finance floor of a bank?
    2) Do people in market risk work longer hours than traders or the same time?
    3) How quantitative is the work? How technical is it?
    4) Do people in market risk need to go and build relationships with traders in the way that inter dealer brokers do or do you just need to get on well with them?
    5) Is market risk suitable for an introvert? I can be social and I can get on well with people and talk but I just need to replenish my social energy.

    I'll be applying for summer internships next year. I was previously set on going into big4 assurance but lots of my friends have been talking about banking recently and I have become interested in middle office roles, specifically market risk, recently.
    Offline

    21
    ReputationRep:
    Did you catch the LSE banking bug?
    • TSR Support Team
    Offline

    21
    ReputationRep:
    TSR Support Team
    (Original post by faston2k16)
    I've read some basic stuff on the role but I'm still confused.
    1) Do people working in market risk work on the trading floor or on the operations/finance floor of a bank?
    2) Do people in market risk work longer hours than traders or the same time?
    3) How quantitative is the work? How technical is it?
    4) Do people in market risk need to go and build relationships with traders in the way that inter dealer brokers do or do you just need to get on well with them?
    5) Is market risk suitable for an introvert? I can be social and I can get on well with people and talk but I just need to replenish my social energy.
    1) Former
    2) Probably less hours, or about the same hours
    3) Pretty quant-y if you're working on risk models, otherwise as quanty as any other markets job (i.e. not really)
    4) Not really, you're kind of their worst nightmare Joking aside, you set the VaR levels traders can take on and you restrict how much traders that are taking on unnecessary risk can take, it's not a client facing job. Some interface with places like compliance, finance, credit risk etc.

    Credit risk is the job that tends to be more 'client' facing, not market risk
    5) Yes

    Posted from TSR Mobile
    • Thread Starter
    Offline

    0
    ReputationRep:
    (Original post by Trapz99)
    Did you catch the LSE banking bug?
    Yeah hahaaha
    We all get it eventually, even the sociology grads
    • Thread Starter
    Offline

    0
    ReputationRep:
    (Original post by Princepieman)
    1) Former
    2) Probably less hours, or about the same hours
    3) Pretty quant-y if you're working on risk models, otherwise as quanty as any other markets job (i.e. not really)
    4) Not really, you're kind of their worst nightmare Joking aside, you set the VaR levels traders can take on and you restrict how traders that are taking on unnecessary risk it's not a client facing job. Some interface with places like compliance, finance, credit risk etc.

    Credit risk is the job that tends to be more 'client' facing, not market risk
    5) Yes

    Posted from TSR Mobile
    Thanks very very very much!
    as for the bolder part, yeah I have heard that the risk guys are hated by traders a lot and that they get screamed at when the traders are having a bad day. Tbh I don't mind getting screamed at!
    • TSR Support Team
    Offline

    21
    ReputationRep:
    TSR Support Team
    (Original post by faston2k16)
    Thanks very very very much!
    as for the bolder part, yeah I have heard that the risk guys are hated by traders a lot and that they get screamed at when the traders are having a bad day. Tbh I don't mind getting screamed at!
    Np.

    As for comp, I've heard base is similar to FO with lower bonus.

    Posted from TSR Mobile
    • Thread Starter
    Offline

    0
    ReputationRep:
    (Original post by Princepieman)
    Np.

    As for comp, I've heard base is similar to FO with lower bonus.

    Posted from TSR Mobile
    Yes I've heard of £40000 with a small bonus for a first year analyst in risk. That's already nearly double what my parents' income is! And I've heard VPs comp is around £90000.
    • TSR Support Team
    Offline

    21
    ReputationRep:
    TSR Support Team
    (Original post by faston2k16)
    Yes I've heard of £40000 with a small bonus for a first year analyst in risk. That's already nearly double what my parents' income is! And I've heard VPs comp is around £90000.
    Ahaha, it's crazy man. All of finance has great salaries..
    Offline

    1
    ReputationRep:
    (Original post by faston2k16)
    Thanks very very very much!
    as for the bolder part, yeah I have heard that the risk guys are hated by traders a lot and that they get screamed at when the traders are having a bad day. Tbh I don't mind getting screamed at!
    Market Risk is middle office and some market risk roles are incorporated with operations as project teams. Do you need to be introvert? Doesn't matter. You need to have strong attention to detail, analytical and be able to communicate effectively if asked to do so or present findings. You'll work with lots of people tech, trading, operations, other risk teams etc.

    A lot of y'all have misconceptions of what actually happen in banks. This is real life. No one in banking is better than another person regardless of which ever division you're working in. You must treat people with respect. You'll get to know that if you're lucky enough to get an offer. And, If someone screams at you. You'll be surprised how serious the consequences could be for them before they even get to apologize for such appalling behaviour.
    Offline

    11
    ReputationRep:
    (Original post by Princepieman)
    1) Former
    2) Probably less hours, or about the same hours
    3) Pretty quant-y if you're working on risk models, otherwise as quanty as any other markets job (i.e. not really)
    4) Not really, you're kind of their worst nightmare Joking aside, you set the VaR levels traders can take on and you restrict how much traders that are taking on unnecessary risk can take, it's not a client facing job. Some interface with places like compliance, finance, credit risk etc.

    Credit risk is the job that tends to be more 'client' facing, not market risk
    5) Yes

    Posted from TSR Mobile
    I thought it was quants who worked on the risk models, not market risk analysts?
    • TSR Support Team
    Offline

    21
    ReputationRep:
    TSR Support Team
    (Original post by Mandem67)
    I thought it was quants who worked on the risk models, not market risk analysts?
    They *build* the models, risk analysts use them.

    Posted from TSR Mobile
    Offline

    11
    ReputationRep:
    (Original post by Princepieman)
    They *build* the models, risk analysts use them.

    Posted from TSR Mobile
    Ah okey-dokey
    Offline

    11
    ReputationRep:
    (Original post by Princepieman)
    They *build* the models, risk analysts use them.

    Posted from TSR Mobile
    Would you happen to know whether market risk positions for more quantitative desks require more quantitative degrees? Like would a maths/engineering grad be preferred for market risk for exotics?
    • TSR Support Team
    Offline

    21
    ReputationRep:
    TSR Support Team
    (Original post by Mandem67)
    Would you happen to know whether market risk positions for more quantitative desks require more quantitative degrees? Like would a maths/engineering grad be preferred for market risk for exotics?
    Possibly

    Posted from TSR Mobile
    Offline

    19
    ReputationRep:
    How competitive is it getting into this industry? As selective as IB?

    (Already chosen my career path elsewhere but curious looking at other paths I could've taken )
    Offline

    21
    ReputationRep:
    (Original post by Lord Samosa)
    How competitive is it getting into this industry? As selective as IB?

    (Already chosen my career path elsewhere but curious looking at other paths I could've taken )
    It's still extremely competitive but not as competitive to get into as IBD or sales and trading and research.
    Offline

    1
    ReputationRep:
    Hi guys,
    Does the uni matter for market risk? As in, targets/semi-targets?
    • TSR Support Team
    Offline

    21
    ReputationRep:
    TSR Support Team
    (Original post by YoFadda)
    Hi guys,
    Does the uni matter for market risk? As in, targets/semi-targets?
    Not as much, but the same uni names pop up.

    Posted from TSR Mobile
    Offline

    1
    ReputationRep:
    (Original post by Princepieman)
    Not as much, but the same uni names pop up.

    Posted from TSR Mobile
    Thank you. So does the degree subject not matter for risk roles or does that only apply for IBD? Because I heard that quantitative degrees like maths/engineering are preferred for trading jobs so I was wondering whether this also applied to risk?
    • TSR Support Team
    Offline

    21
    ReputationRep:
    TSR Support Team
    (Original post by YoFadda)
    Thank you. So does the degree subject not matter for risk roles or does that only apply for IBD? Because I heard that quantitative degrees like maths/engineering are preferred for trading jobs so I was wondering whether this also applied to risk?
    Applies to everything apart from where it is obvious that you'd need a stronger quant background (e.g. exotics trading, quant roles etc)..
 
 
 
Poll
Do you think parents should charge rent?
Useful resources

Articles:

Guide to investment bankingGuide to consultancy

Featured recruiter profiles:

Deutsche Bank logo

Deutsche Bank is recruiting

"Thrive in an international banking environment"

Quick link:

Unanswered investment banking and consultancy threads

Groups associated with this forum:

View associated groups

The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE

Write a reply...
Reply
Hide
Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.