Senior Analyst, Specialist Financial Risk

at  Bank of England

DIRECTORATE OVERVIEW

In the Financial Market Infrastructure Directorate (FMID) you will join a directorate at the heart of the Bank, responsible for supervision, policy and technical risk analysis on the infrastructure that sits at the core of the financial system – payment systems, central counterparties (CCPs) and central securities depositories (CSDs). The financial market infrastructure firms (FMIs) that we regulate are essential to the smooth and safe operation of the UK financial system. They provide services, like payments, that people use every day. They enable financial market participants to manage their risks. As a global financial centre, the smooth and safe operation of UK FMIs is also vital for international markets.
We offer an outstanding and exciting place to work in a highly collaborative directorate, undertaking work with strong links into numerous other parts of the Bank and international regulators. For more information on the work we do, see our latest annual report available here: The Bank of England’s supervision of financial market infrastructures - Annual Report 2023 | Bank of England
FMID is unusual within the Bank in that it brings together supervisors, policy analysts and risk specialists in one place. This means there are plenty of opportunities for cross-cutting working and the opportunity to gain insight into how different areas work. Working in FMID is a phenomenal way to understand the linkages of the financial system.
FMID is passionate about delivering the Bank’s diversity agenda, retaining and attracting diverse talent and ensuring that the directorate is somewhere that all staff feel they belong. Flexible working is encouraged.

JOB DESCRIPTION

We are recruiting for a Senior Analyst to join our team whose primary work is to review financial risk models of supervised financial market infrastructures. These models are normally market risk models (value-at-risk and stress testing) used by central counterparties (CCPs) to set collateral requirements in their clearing services. We also provide risk expertise to supervisors and policy and data analysts, for example by forming an overall view of the financial resilience of firms.
We are part of the Financial Risk & Resilience team that is also responsible for conducting the regular CCP Supervisory Stress tests of UK CCPs, and there are many opportunities to contribute to this as you establish yourself in role. Our team works closely with supervisory teams for the UK CCPs and policy teams that review and draft regulatory requirements for CCPs, especially when relevant to financial risk.
When conducting reviews you will typically spend half of your time investigating the target model, for example by reviewing model documentation, interviewing model owners and users, and analysing the model’s quantitative performance. You will then assess the model and write up findings in a report and present to a committee to agree whether any supervisory action is needed by the Bank. Our ultimate objective is to advance financial stability through risk-based judgements, and we often have to make assessments using limited information and with input from areas across the Bank. The work is often done in small teams that may involve colleagues across the Bank or from other FMI regulators.
The most important skills for this role are: curiosity and a drive to learn, a methodical approach to investigation and analysis of partial data and information, and excellent written and verbal communication skills, especially when explaining technical concepts to senior management, and when articulating judgements to persuade others. As a scale F role and, once your onboarding and induction training is complete, you will begin leading minor/medium-sized reviews and contributing materially to major reviews.
This role offers the opportunity to learn about new types of firms and financial risk management, and to develop new skills in supervision, policy development, and stakeholder management across a range of teams within FMID, the wider Bank and with other regulators such as the FCA, ESMA, ECB, FRB and CFTC. Our work is often used to influence important supervisory decisions, and judgements can be presented and debated at senior statutory Bank committees such as FMI Committee and the Financial Policy Committee.

• Genuine natural curiosity, and ability and drive to learn complex new topics.
• The ability to work independently or in a team, organise your own schedule, and take a clear methodical approach when investigating a risk model.
• Strong numerical and analytical skills to grasp and simplify complex problems, and to see the bigger picture from technical details.
• Excellent written and verbal communication of technical models and ideas, including to different audiences (other analysts, seniors, the public), and including the ability to articulate the logical supporting your judgements.

Minimum Criteria

• A proven ability and drive to learn complex new topics.

• Excellent analytical skills to understand the key ideas behind a complex topicsProven excellent written and verbal communication of technical concepts to a range of audiences.

Essential Criteria

• A curiosity in how financial markets work and their impact on financial stability
• The ability to work independently and organise your own schedule.
• Good team-working, for example ability to seek help, engage in effective technical discussions focussing on the most important ideas, and willingness to help others.
• Good understanding of fundamental statistics (distributions, hypothesis testing) and market risk models (e.g. value-at-risk models).

Desirable Criteria

• Prior knowledge of CCPs and relevant regulation (e.g. UK EMIR) can help, though this will also be taught as part of introductory training.Knowledge of standard financial markets can help (e.g. interest rate swaps, equities, commodities, repo, FX), for example typical users and pricing models.