Front Office Market Risk

Lads,

I'm constantly seeing people on LinkedIn, and on job offers that say "Market Risk Front Office position" etc.

I also have a friend that just put on his LinkedIn header "Market Risk front office at Bank X (BB)"
I tried to ask and he says that is because they meet clients too and sit with traders having a support team too. He previously worked in fixed income trading in a similar bank (Tier2)

Also, he said that the role is becoming more Quant and markets related as another reason

Quite confused.. I thought Market risk was MO, but given the firm where I'm interning hasn't MO/BO because of its dimension don't have direct experience

Thoughts?

Comments (20)

Funniest
Mar 28, 2019

I'm a front office receptionist because I meet clients too.

    • 8
Mar 28, 2019

Lol this was hilarious! So I guess your thoughts are Market Risk ? FO?

The name of the game, moving the money from the client's pocket to your pocket

Mar 28, 2019

They sit on the trading floor... it doesn't mean they're legit front office bringing in revenue. I worked in market risk prior to trading. But they do have connection to the traders, though, they don't want to drink with you at the bar nor invite you lol

    • 1
Mar 28, 2019

The name of the game, moving the money from the client's pocket to your pocket

Mar 29, 2019

This is BO - it is a risk group of the front office, not a front office risk group.

    • 1
    • 4
Learn More

Side-by-side comparison of top modeling training courses + exclusive discount through WSO here.

Mar 28, 2019

Thanks for the clarification. So it exists a front office risk group?

The name of the game, moving the money from the client's pocket to your pocket

Mar 29, 2019

FO at its most boiled down point literally just means your team generates revenue for the bank. Risk teams mitigate risk but do not generate revenue therefore they inherently cannot be FO.

Mar 30, 2019

Bro my LinkedIn reads Analyst @ NYC based Hedge Fund and it's vague AF.....
Anyone who's actually FO doesn't need to specify it. Btw if I see the word "risk" it immediately means middle office at best.

thots and prayers

    • 1
    • 1
Most Helpful
Mar 31, 2019

A more accurate description of your friend's role would be to say that it is client facing and not front office. There is a difference between generating revenue in the front office and client facing. There are many middle office roles that are client facing and not generating revenue, making them middle office.

However, it is very possible to have a front office role in market risk or risk management in general. There are many boutique firms as well as larger ones that provide risk management advisory services to internal and external clients. They generate revenue as they are compensated through fees, so if you are doing this, then yes you could be considered front office.

I suspect that this is not what your friend's role is from the description. They are likely sitting next to the desk on the floor and are client facing, but not directly generating revenue. I would just leave it at that. Your friend can call it whatever they want, but a spade is a spade. At the end of the day, they are supporting the trading desk. Key word: supporting.

    • 3
Apr 2, 2019

Bahahahaha

"Market risk front office"... Not insecure about being in the BO at all...

Apr 2, 2019

Who tf cares?

    • 1
Apr 3, 2019

My guess what would be that your mate works in the "traded risk" team within the bank's market risk division. Generally, professionals in TR: i) Do work closely with the traders (and are even considered "the first line of defence" by some banks; ii) Get a say in whether bigger, more risky positions are put on (but not in terms of formulating them - more outright "yes" or "no," or asking for additional colour); iii) Do also, on occasion, meet clients (although more often the PRA, etc).

It's about as "front office" as you can get in risk, but is a bit of a stretch to directly call it "front office." Even "front / middle office" is questionable. Considered an attractive position for risk professionals working in more conventional risk roles that want a greater say in the bank's trades. Can pay very well, but unlikely to pay as well as a successful trader.

Apr 8, 2019

There are some risk positions that actually trade, and that makes them FO. The risk group sees the consolidated positions of the entire firm...and when the firm gets skewed too heavy in any one direction...the senior risk manager has the authority to put on trades to hedge the firm...and these can be big trades, with big P&L.

most (95%) of positions in risk are not this...they are analysts who work for this guy. if you are the senior risk manager for FICC at morgan stanley or wherever, you might buy or sell 1 bln 10yr notes when the firm is too exposed (seen it happen). However, if you work in the risk group on their consolidated risk database reporting tool..you are not FO...its more like an IT job. Then there are risk assessment people who determine credit worthiness of customers, and how much exposure the firm wants to have with them. Thats sortof front office, because you might be talking to customers....but its more middle office (because its not sales...its more credit evaluation analysis...however, talking to clients has some cache i suppose...you want these people to have reasonable social skills).

Its mostly a grey area..but who cares...its a job.

just google it...you're welcome

Mar 28, 2019

good reply, thanks a lot!

The name of the game, moving the money from the client's pocket to your pocket

Apr 10, 2019

Lol

    • 1
Apr 26, 2019
Comment