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Market risk Quant vs Analysts

I have seen some discussions on this form regarding the market risk analyst role in an investment bank. I was wondering what the exact difference is between a market risk analyst and a markt risk quant? From what I understand, market risk analysts their main responsibility is analyzing the risk profiles of the trading books by looking at risk measures such as VaR, the Greeks etc. I then expect that market risk quants their responsibility is development and maintenance of the market risk models. Hence, the market risk quants develop and monitor the models that are used by the market risk analysts.

Can someone give me more insight? Furthermore, to what extend are market risk quants exposed to derivatives pricing. I would expected the latter to be the responsibility of the front office quants.


Ken Abbott

Managing Director
Market risk quants develop and test models, like VaR models and stress test components. They also do model documentation and validation. Nearly all have PhDs or technical masters degrees. BA/BS degrees in anything beyond the governance area is rare.

Market risk analysts are usually associated with particular desks and monitor the daily activity, assess the impacts of new products, and meet with management and regulators. Although many start out fresh out of college in these jobs, most, market risk analysts have or plan to get some kind of masters degree.

Communication skills are crucial to both, but especially the latter. I have seen many, many quants sidetracked because of their spoken or written communication skills.