Operations, Asset Servicing & Risk · related to Market Risk Analyst

Traded Risk Analyst

Full profileYour role

L3 salary: Not published yetSalary figures open with the salaries section.
Upcoming dated changes: 10 changes aheadNext: 1 Jan 2027
Where the changes come from
Each change in the Regulatory calendar comes from an official text, linked on its page.
A change affects this role directly when it names a process that is one of the role's main tasks.
Top critical skills: Risk measures and sensitivities
Derivatives and how they work
Basel framework and capital

What the role does

A traded risk analyst covers the risks of trading activity across market risk and counterparty credit risk. The role measures VaR, expected shortfall, sensitivities and stress losses, monitors counterparty exposure such as potential future exposure, and supports regulatory capital under the Basel standards: FRTB (Fundamental Review of the Trading Book) for market risk and the CVA (credit valuation adjustment) risk framework, including SA-CVA, the standardised approach. It works with trading desks, XVA (valuation adjustments) teams, finance and model validation.

Read a day in the life

A day in the life

The analyst starts with the overnight runs for market and counterparty risk. After checking positions, market data and netting and collateral data, the analyst reviews VaR, expected shortfall and sensitivities by desk, and exposure profiles for the largest counterparties. Material moves are explained and limit breaches escalated. Mid-morning there may be a call with the desk about a large trade that increases exposure to one counterparty or a concentration in one risk factor. Part of the day goes to capital: the standardised and internal model approaches for market risk, risk factor eligibility tests, profit and loss attribution results, and CVA capital inputs. The analyst also reviews new products for risk capture and works with model validation when a methodology changes. In the afternoon come stress tests, wrong-way risk analysis, requests from auditors or supervisors, and the daily traded risk report with short, clear commentary.

Levels

L1 Starting out 0-2 years
L2 Independent 2-5 years
L3 Senior or specialist 5-9 years
L4 Leads a team or an area 8-14 years
L5 Leads the function 12+ years

Full level descriptions and job titles

The EFO level names are the common scale; job titles differ between employers.

Levels of Traded Risk Analyst
Level	What the work looks like	Typical years	Typical job titles
L1 Starting out	Produces daily market and counterparty risk reports with defined steps, checks data, explains simple moves and learns VaR, exposure measures and the Basel standards under supervision.	0-2	Banks: Analyst, Junior Analyst, Associate (asset servicing), Trainee, GraduateAsset servicers: Junior, Specialist (entry), Officer
L2 Independent	Owns traded risk coverage for a desk or counterparty segment, explains risk and capital results, handles limit breaches, trains new joiners and is first contact for desk and XVA questions.	2-5	Banks: Analyst / Senior Analyst, AssociateAsset servicers: Specialist, Senior Specialist, Senior Officer
L3 Senior or specialist	Works on FRTB and CVA capital methodology, risk factor eligibility and profit and loss attribution tests, reviews new products, and represents traded risk in projects, audits and supervisory reviews.	5-9	Banks: Senior Associate, AVP, Assistant ManagerAsset servicers: Senior Specialist, Expert, Team Lead (small team)
L4 Leads a team or an area	Leads a traded risk team, owns limits and risk appetite metrics for market and counterparty risk in its area, and is the escalation point for breaches, capital issues and trading heads.	8-14	Banks: VP, Manager, Senior ManagerAsset servicers: Team Lead, Manager, Head of Section
L5 Leads the function	Accountable for traded risk in a legal entity or region, sets the framework and risk appetite proposals for market and counterparty risk, and represents the function with the board and supervisors.	12+	Banks: Director, Executive Director, Managing Director, Head of functionAsset servicers: Head of Department, Director

Skills

The percentage is the skill's share of the role; the bars are drawn relative to the anchor skill, which is shown full.

Critical 6

The job cannot be done without these.

Risk measures and sensitivitiesWeight 12.7%Anchor skillExpected level: practitionerRelevant to you
Derivatives and how they workWeight 8.5%Expected level: practitionerRelevant to you
Basel framework and capitalWeight 8.5%Expected level: practitionerRelevant to you
Descriptive statistics and distributionsWeight 8.5%Expected level: practitionerRelevant to you
Financial markets knowledgeWeight 8.5%Expected level: practitionerRelevant to you
Model validation and governanceWeight 8.5%Expected level: practitionerRelevant to you

Important and supporting skills 16

Important 7

Needed in most positions.

Python for data analysisWeight 4.3%Expected level: practitionerRelevant to you
Advanced Microsoft ExcelWeight 4.3%Expected level: practitionerRelevant to you
Querying data with SQLWeight 4.3%Expected level: practitionerRelevant to you
Risk judgment and escalation instinctWeight 4.3%Expected level: practitionerRelevant to you
Professional written communicationWeight 4.3%Expected level: practitionerRelevant to you
Independent price verificationWeight 4.3%Expected level: practitionerRelevant to you
Attention to detailWeight 4.3%Expected level: practitionerRelevant to you

Supporting 6

Help in many positions.

Trading and risk systems (Murex, Calypso)Weight 2.1%Expected level: working knowledgeRelevant to you
P&L production and explanationWeight 2.1%Expected level: working knowledgeRelevant to you
Prudential and regulatory reporting (COREP, FINREP, US call reports)Weight 2.1%Expected level: working knowledgeRelevant to you
Working to tight deadlinesWeight 2.1%Expected level: working knowledgeRelevant to you
Applied statistical modelling for pricing and risk (GLM, survival)Weight 2.1%Expected level: working knowledgeRelevant to you
Control mindset (what could go wrong)Weight 2.1%Expected level: working knowledgeRelevant to you

Useful 3

Occasionally useful.

Visualisation tools (Power BI, Tableau)Weight 0.7%Expected level: working knowledgeRelevant to you
Stakeholder managementWeight 0.7%Expected level: working knowledgeRelevant to you
Operational resilience and ICT risk rules (DORA and equivalents)Weight 0.7%Expected level: working knowledgeRelevant to you

Processes

The work the role takes part in.

What each process covers

Capital calculationMainComputing how much capital the bank must hold against its risks.
Market risk measurementMainMeasuring sensitivities and potential losses on trading positions.
Model development and validationMainBuilding and independently checking risk and pricing models.
P&L and valuation controlMainProducing and explaining daily P&L and independently checking prices.

Where the role concentrates

How AI is changing the role

Large daily calculations, data checks and standard capital reports are increasingly automated, and machine learning is explored for faster exposure simulation and anomaly detection in risk data.

Read the full assessment

Large daily calculations, data checks and standard capital reports are increasingly automated, and machine learning is explored for faster exposure simulation and anomaly detection in risk data. The European Banking Authority notes rising AI use in EU banks with clear expectations on model governance. Value shifts to understanding methodologies, explaining capital and exposure changes, challenging desks and working with validation and supervisors. The World Economic Forum Future of Jobs Report 2025 lists analytical thinking and AI and big data among the fastest-growing skills, which favours analysts who combine regulation knowledge with Python and data skills.