Title:  Principal Market Risk Specialist

Purpose

This role is a subject matter expert responsible for identifying, assessing and mitigating market risk exposures across the organization’s energy trading, hedging, and procurement activities. The role provides strategic insights, analytical expertise, and leadership in market risk measurement and policy development to support the company’s risk-adjusted decision-making processes. This position is critical in ensuring that the utility maintains a robust risk management framework to navigate price volatility in energy markets, regulatory impacts, and external shocks.

Nature and Scope

There are five (5) levels in this job classification series that have similar job content but with progressively more challenging degrees and levels of skill, responsibility, knowledge, experience, and qualification requirements: 

Flex classifications (that permit progression from lower-level classes to higher level classes without examination based upon assessment of an individual’s experience and performance) within the series:  

• Entry: Incumbent acquires knowledge, skills and abilities to perform the tasks associated within the series but are not yet demonstrating these at the Journey level.
• Journey: Incumbent is demonstrating the required skills and knowledge to independently perform the full scope of the job. 
   

Non-Flex classifications (that promote from lower-level classes to higher level classes and require an examination, such as an interview, based upon individual experience and performance) within the series:  

• Senior: Advanced journey level resource who is responsible for advanced assignments, as dictated by the work needing to be performed; may serve in a lead and/or supervisory capacity.
• Principal: Subject matter expert/lead/supervisory level and is responsible for leading the most advanced work, as dictated by the work needing to be performed.
• Supervisor: Working supervisor directing the work of a functional team. 
   

Entry to Journey: Incumbents at the entry level are required to successfully “progress” to the journey level within 60 months of appointment to remain within the job series. 

Seniors, Principals, and/or Supervisors must be hired through a promotional process and do not automatically progress from lower levels in the series. 

Duties and Responsibilities

• Oversee the assessment and monitoring of market risk exposures across power, gas, renewables, and other commodity portfolios.
• Design and implement quantitative risk models and tools (e.g., Value-at-Risk, stress testing, scenario evaluation, gross margin).
• Develop, refine and maintain risk policies, procedures and controls in alignment with corporate objectives and regulatory requirements.
• Partner with front-office trading, finance, treasury, and operations teams to provide actionable risk insights and ensure compliance with risk limits.
• Conduct regular assessments of market trends, price drivers, and macroeconomic factors impacting the utility’s exposure.
• Present complex risk findings to executive management, including the Risk Oversight Committee and Board of Directors.
• Evaluate and recommend enhancements to the company’s energy procurement strategies from a risk-adjusted perspective.
• Ensure compliance with relevant regulatory bodies (e.g., FERC, NERC, state utility commissions).
• Mentor junior risk staff and contribute to a culture of risk awareness across the organization.
• Create and forecast the commodity budget to support strategic planning and rate setting.
• Monitor and report weekly and monthly on budget performance, assessing market conditions and risks.
• Recommend mitigation strategies for variances between actual and expected expenditures.
• Perform other related duties as needed; schedules, hours and locations may fluctuate based on business needs.

Required Education

• Bachelor’s degree in finance, economics, engineering, mathematics, statistics, or a related field from an accredited college or university, or equivalent experience. If no degree, eleven or more (11+) years of relevant experience are required.

Required Experience Qualifications

• At least seven (7+) years of experience in market risk, energy trading, quantitative risk management within the utility or energy sector.

Knowledge Of

Applied mathematics and statistics: Utilize mathematical and statistical methods to evaluate data and support decision-making; Business analysis methods and procedures: Apply business analysis techniques to evaluate processes and improve efficiency; Safety policies, practices and procedures: Adhere to safety protocols to ensure a safe working environment; Problem-solving techniques: Employ effective problem-solving methods to address and resolve issues; Teamwork techniques and concepts: Understand and apply practical techniques for working effectively in a team environment; Organizational unit characteristics and needs: Recognize the characteristics and operational needs of various organizational units; Standard operating procedures for office equipment: Follow standard procedures for using modern office equipment, including computers and applicable software; English grammar, punctuation, and vocabulary standards: Use English grammar, punctuation, and vocabulary in various methods of communication; Planning and organizing work activities: Implement methods and techniques for planning and organizing work tasks efficiently; Deep knowledge of North American energy markets (e.g., ISO/RTO structures such as PJM, CAISO, ERCOT); Working knowledge with energy trading and risk management systems (e.g., Endur, Allegro, PowerBI, ETRM platforms).

Skills To

Demonstrate strong analytical and quantitative modeling skills with proficiency in risk tools and programming languages (e.g., Energy Market Simulation Software, Python, R, MATLAB, SQL); Communicate findings to internal audiences; prepare and present reports and summaries; Interpret and apply SMUD policies, procedures, and applicable MOU under guidance; understand and follow established guidelines and agreements; Learn and apply energy risk management and portfolio optimization theories; support the application of these theories in practical scenarios; Provide practical and feasible energy trading solutions; support the development of risk-neutral and cost-effective solutions; Contribute to developing and presenting energy risk management and financial recommendations; balance analytical results with market realities under supervision; Solve problems of low to high complexity creatively and pragmatically; apply basic to complex problem-solving techniques to address issues; Handle stress effectively under time pressure; manage time efficiently and maintain composure during tight deadlines; Collaborate and achieve positive outcomes with cross-departmental team members; work effectively as part of a team to reach common goals; Utilize a personal computer and relevant software systems; demonstrate proficiency in using software tools necessary for the job; Communicate effectively orally and in writing internally; develop clear and concise communication skills; Build and maintain positive working relationships with team members and colleagues; Demonstrate proficiency in Microsoft Excel and data analysis tools (e.g., Energy Market Simulation Software, Python, R, MATLAB, SQL).

Desirable Qualifications

• Working knowledge with energy trading and risk management systems (e.g., Endur, Allegro, PowerBI, ETRM platforms).
• Demonstrate strong analytical and quantitative modeling skills with proficiency in risk tools and programming languages (e.g. Energy Market Simulation Software, Python, R, MATLAB, SQL).

Physical Requirements