Learn finance, banking, risk, data science and fintech

Career Prospects for Energy Risk Professionals (ERP)

When you complete your ERP risk certification fro GARP, you not only become an expert in the subject, but also greatly improve your career prospects. With the increasing global energy requirements, the demand for trained energy risk professionals is increasing. This article briefly looks at the career options for ERP professionals.

Industries

The energy risk professionals are employed in a variety of industries such as:

  • Energy companies: These include oil, power, natural gas and LNG, and renewables.
  • Financial Institutions: These include commercial and investment banks, asset management firms, and hedge funds.

Apart from energy and financial companies, other industries that employ ERPs are consulting, technology, and Government firms.

What do Energy Risk professionals do?

The energy risk professionals perform a variety of job roles involving identifying, measuring, and managing the risk related to energy products and industry. Examples of job titles for energy risk professionals are: risk analyst, risk manager, energy consultant, and chief risk officer.

The following is a sample job description for an energy risk manager:

  • Perform and manage energy risk management engagements related to front, middle, and back Office operations
  • Review and document energy processes including the identification of internal control weaknesses
  • Analyze and assess activities related to energy companies, including targeting services to clients based on pre-existing client relationships, directing client needs assessments, targeting prospective engagements, developing proposals, and negotiating project contracts
  • Develop and support Risk Management Models for use in the Production of client deliverables
  • Write and present to clients clear and concise reports and presentations containing meaningful recommendations and participate in the proposal process for potential engagements

Compensation

The compensation for energy risk professionals largely depends on their education and work experience.

According to the 2010 Annual Salary Survey by Risk Talent, the compensation growth for risk professionals has slowed down, but is still healthy.

The following tables summarize the compensation based on experience and by title.

Experience Total Annual Compensation (Salary + Bonus + Non-cash bonus)
0-6 years $136,000
7-10 years $204,000
11-15 years $346,000
16+ years $420,000

 

Title Total Annual Compensation (Salary + Bonus + Non-cash bonus)
Analyst / Associate $138,000
Manager $170,453
Vice President $303,000
Director $286,115
Managing Director $544,000
Chief Risk Officer $442,744

The survey also states that risk professionals based in the eastern United States earn the highest total compensation followed by those in the energy hub in the US South/Southeast.  Participants from all U.S. regions report higher figures than those included in the survey from Europe and Canada.

Top Companies Employing the Energy Risk Professionals

According to GARP, the following are the top companies that employ most of the ERP candidates.

Financial Institutions Energy Companies Consulting Firms
  • Bank of America
  • Barclays Capital
  • BNP Paribas
  • Citi
  • Credit Suisse
  • Goldman Sachs
  • HSBC
  • Royal Bank of Canada

 

  • British Petroleum
  • Constellation Energy
  • E.ON
  • GDF SUEZ
  • Grupa Lotos
  • Hess
  • Iberdrola Renewables
  • NiSource
  • Shell

 

  • Deloitte
  • Ernst & Young
  • KPMG
  • PricewaterhouseCoopers
  • Sapient

 

 

Try our courses on Data Science for Finance. JOIN FREE

Leave a Reply

Your email address will not be published. Required fields are marked *

Name *