I simply want to get a decent idea of the daily work that a risk team carries out in a high-frequency trading firm and/or market making firm.

The primary goal would be to limit potential losses, but how is that done in this specific environment?

Does the risk team do any of these on a day-to-day basis?

• Review code written by traders to check for possible shortcomings.
• Review strategies and models to ensure they are sound.
• Check trade permissions, position limits.
• Check the data in use.
• Check the hardware and software in use.

If they do, could you expand on how so? What else do they do?

Lastly, what kind of risk models are used in a high-frequency context? I have a basic understanding of (quantitative) risk management/models, but not in a setting where data is high-frequency and irregularly spaced. Does this change the modelling substantially?

Thank you in advance.

In a high-frequency environment, such as a proprietary trading firm or market making firm, the primary goal of the risk management team would be to limit potential losses, but how is that done in this specific environment?

What kind of risk models are used in a high-frequency context? I have a basic understanding of (quantitative) risk management/models, but not in a setting where data is high-frequency and irregularly spaced. Does this change the modelling substantially?

Furthermore, are the following also major considerations?

• Review code written by traders to check for possible shortcomings.
• Review strategies and models to ensure they are sound.
• Check trade permissions, position limits.
• Check the data in use.
• Check the hardware and software in use.

If they do, could you expand on how so?

Thank you in advance.

I simply want to get a decent idea of the daily work that a risk team carries out in a high-frequency trading firm and/or market making firm.

The primary goal would be to limit potential losses, but how is that done in this specific environment?

Does the risk team do any of these on a day-to-day basis?

• Review code written by traders to check for possible shortcomings.
• Review strategies and models to ensure they are sound.
• Check the data in use.
• Check the hardware and software in use.

If they do, could you expand on how so? What else do they do?

Lastly, what kind of risk models are used in a high-frequency context? I have a basic understanding of (quantitative) risk management/models, but not in a setting where data is high-frequency and irregularly spaced. Does this change the modelling substantially?

Thank you in advance.

I simply want to get a decent idea of the daily work that a risk team carries out in a high-frequency trading firm and/or market making firm.

The primary goal would be to limit potential losses, but how is that done in this specific environment?

Does the risk team do any of these on a day-to-day basis?

• Review code written by traders to check for possible shortcomings.
• Review strategies and models to ensure they are sound.
• Check trade permissions, position limits.
• Check the data in use.
• Check the hardware and software in use.

If they do, could you expand on how so? What else do they do?

Lastly, what kind of risk models are used in a high-frequency context? I have a basic understanding of (quantitative) risk management/models, but not in a setting where data is high-frequency and irregularly spaced. Does this change the modelling substantially?

Thank you in advance.