Equity Risk Manager - Volatility

Job Description

Overview

A global multi-strategy hedge fund is seeking an experienced Equity Volatility Risk Manager to partner closely with Portfolio Managers across its global equity volatility business. This is a true front-office risk role, focused on helping investment teams optimize risk-adjusted returns while maintaining a robust risk framework. The successful candidate will develop a deep understanding of complex volatility trading strategies, challenge portfolio construction, monitor evolving market risks and contribute to investment decisions through proactive risk management.

Key Responsibilities

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• Act as the primary risk partner to Equity Volatility Portfolio Managers, providing independent oversight and constructive challenge across a broad range of listed and OTC options strategies while supporting informed risk-taking and optimal portfolio construction.
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• Develop a deep understanding of individual trading strategies , investment objectives and portfolio construction methodologies, enabling you to identify emerging risks, challenge assumptions and provide commercially focused risk recommendations that enhance risk-adjusted returns.
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• Monitor and analyse portfolio exposures across a comprehensive range of market risk factors, including Delta, Gamma, Vega, Theta, Rho, implied and realised volatility, volatility surfaces, skew, term structure, correlation, convexity, jump risk and other higher-order Greeks, ensuring risks remain consistent with the Portfolio Manager's investment thesis and the firm's risk appetite.
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• Provide independent oversight of complex equity derivatives portfolios , covering single stock options, index options, ETF options, variance swaps, volatility swaps, correlation trades, dispersion strategies and other sophisticated volatility structures, assessing both individual positions and aggregate portfolio risk.
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• Conduct detailed stress testing and scenario analysis , modelling the impact of market dislocations, volatility spikes, earnings announcements, macroeconomic events, geopolitical developments and liquidity shocks to assess portfolio resilience under a wide range of market conditions.
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• Evaluate portfolio construction and capital allocation , challenging position sizing, concentration levels, diversification, leverage, hedging strategies and overall risk utilisation to ensure portfolios are appropriately balanced and capital is deployed efficiently.
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• Partner closely with Portfolio Managers throughout the investment lifecycle , providing pre-trade risk assessments, evaluating proposed trades and new investment ideas, and delivering ongoing analysis to support dynamic portfolio management in rapidly changing market environments.
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• Analyse portfolio performance and P&L attribution , identifying the key drivers of returns, explaining changes in risk exposures and assessing the effectiveness of hedging strategies, allowing Portfolio Managers to better understand performance across varying volatility regimes.
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• Monitor liquidity, financing and execution risks , assessing the impact of market depth, bid-offer spreads, financing costs, borrow availability and transaction costs on portfolio performance and the ability to efficiently manage or unwind positions.
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• Identify emerging market risks and changing volatility regimes , proactively communicating observations and recommendations to Portfolio Managers and senior investment professionals before risks become material to portfolio performance.
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• Ensure adherence to the firm's risk management framework , continuously monitoring portfolio exposures against established risk limits, escalation thresholds and governance standards while maintaining an appropriate balance between independent oversight and commercial partnership.
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• Prepare and present insightful risk analysis for senior management, Chief Risk Officers and Investment Committees, translating complex quantitative risk metrics into clear, actionable insights that support investment decision-making.
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• Collaborate closely with Quantitative Research, Trading, Technology and Data Engineering teams to enhance risk analytics, improve data quality, develop new monitoring tools and automate risk reporting processes to support a growing and increasingly sophisticated trading platform.
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• Drive the ongoing enhancement of the firm's Equity Volatility risk framework , contributing to the development of new risk methodologies, analytics, stress testing capabilities and reporting tools to ensure the platform continues to evolve alongside increasingly complex trading strategies and market conditions.
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• Maintain a forward-looking approach to risk management , staying abreast of developments in derivatives markets, market structure, volatility products, regulatory changes and quantitative risk methodologies, ensuring best practices are consistently incorporated into the firm's risk management processes.
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Required Experience

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• 8-15 years of experience working as a risk manage at a hedge fund covering Equity Volatility strategies.
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• Strong understanding of option pricing theory and derivatives risk.
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• Ability to engage credibly with experienced Portfolio Managers
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• Excellent knowledge of: Black-Scholes, Implied volatility, Realised volatility, Volatility surfaces, Skew, Term structure, Correlation
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• Experience monitoring equity derivatives portfolios
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• Strong understanding of market microstructure and liquidity dynamics.
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• Experience performing stress testing and scenario analysis.
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• Strong quantitative and analytical skills.
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