Vice President, Counterparty Credit Risk Management

Role Summary

The Risk Management Department (RMD) is responsible for managing all aspects of the risk management function within SMBC BI and CM Ltd. As part of the 2nd line of defence, RMD works in partnership with the Credit and Compliance Department, Finance and Control and Internal Audit to ensure that the organisation remains fully compliant with all regulatory policies and procedures.

The role is responsible for supporting the management and control of all trading credit risks arising in EMEA region which includes global derivatives and securities operations and reviewing the effectiveness of the measures in place. 

Purpose of Job

Accountability for Trading credit risk management in London and oversight for trading credit risks in other group entities across EMEA. To take decisions as appropriate in a timely manner.

Risk Appetite: Enhancing, monitoring and reporting of Risk Appetite in London for Trading Credit Risk and ensuring consistency of approaches in the EMEA region as appropriate. Ensuring the risk appetite is appropriate for the legal entity structure.

Risk Framework: managing and enhancing the development of a consistent Risk Framework for Trading credit risks in EMEA and ensuring this is maintained/ refreshed annually for approval by relevant committees and by the Board.

Responsibilities

Assist in the design, management and on-going development of the Trading Credit Risk, Framework, Policy and limit structure; appropriate to the risk appetite of the firm.

Make input verbally or in writing to aid good credit risk decisions; including within the relevant committees. Make clear and reasoned recommendations.

Make recommendations and exercise judgement, cognisant of risk management policies, firm appetite and industry best practice.

Requirements

Experience in counterparty credit risk exposure management and have a good understanding of different risk measures including Potential Exposure, Wrong Way Risk, Stress Testing etc.

Excellent knowledge of Fixed Income and Derivative products and the risks that arise from them (Bonds, Repos, Derivatives)

Advanced Excel skills for data analysis and basic programming skills to automate manual operations

Who we are

United by a sense of purpose towards our customers – to be a trusted partner for the long-term – and our universal banking platform in EMEA, SMBC Group has an international growth agenda and award-winning products, meaning we provide exciting opportunities to work on a diverse range of projects and initiatives. We deliver a full suite of corporate finance products and solutions to our customers as well as investment banking and advisory services, and a range of innovative solutions in global capital markets. Read on to find out how you could enhance your skills and gain valuable experience, by joining us to support our clients transition to a sustainable future.

Purpose of Job

• Accountability for Trading credit risk management in London and oversight for trading credit risks in other group entities across EMEA. To take decisions as appropriate in a timely manner.
• Risk Appetite: Enhancing, monitoring and reporting of Risk Appetite in London for Trading Credit Risk and ensuring consistency of approaches in the EMEA region as appropriate. Ensuring the risk appetite is appropriate for the legal entity structure.
• Risk Framework: managing and enhancing the development of a consistent Risk Framework for Trading credit risks in EMEA and ensuring this is maintained/ refreshed annually for approval by relevant committees and by the Board.
• Counterparty Risk Monitoring: implement daily monitoring and review of counterparty risks across EMEA with explanation of risk drivers responsible for large daily moves
• Credit and Counterparty Credit Risk Committee: to participate in the monthly Credit and Counterparty Credit Risk Committee and provide input on the key developments over the month. Ensuring that the monthly risk appetite profile, key risk indicators and management information is updated and supported by salient commentary.
• Policies and Procedures: to ensure all Frameworks, policies and procedures are pertinent well documented with approval governance, up to date, and adhered to.
• To liaise with other group entities and attend scheduled and ad hoc meetings to ensure a group wide consistent approach.
• Ensure EMEA region counterparty risk management practices are inline with BCBS Guidelines for Counterparty Credit Risk Management.

Business Area

Key Stakeholders

1. MD Credit Portfolio and Policy RMD, CM Ltd CRO; SMBC BI CRO, RMD Credit Portfolio and Policy Team; & senior risk team members; CFO; Treasurer; CEO; Planning Dept.; Desk Heads (DPG & SPG); CM Inc. and Nikko Tokyo; Front office members as appropriate.

Key Facts

1. Derivatives portfolio ca. $10bn MPE. Fixed Income portfolio ca. $0.5bn market value
2. Securities and Securities Financing Transactions portfolio of c.$30bn

Knowledge, Skills, Experience & Qualifications

•  Experience in counterparty credit risk exposure management and have a good understanding of different risk measures including Potential Exposure, Wrong Way Risk, Stress Testing etc.
• Excellent knowledge of Fixed Income and Derivative products and the risks that arise from them (Bonds, Repos, Derivatives)
• Advanced Excel skills for data analysis and basic programming skills to automate manual operations
• Experience with Data visualisation dashboards like Power BI, Tableau etc.
• Ability to analyse the credit worthiness of corporate, financial institution and NBFIs (including HF’s) and SPV counterparties, particularly in the area of leveraged finance
• Solid understanding of trading related master agreements, collateral and risk mitigation techniques
• Experience of taking and justifying decisions; ideally with a personal discretion.
• Excellent written and verbal communication skills required (including experience of writing papers for Board submissions and updates
• Must be motivated and be a team player with a strong sense of responsibility
• Ability to multitask, work independently or cooperatively and meet deadlines
• The following systems are used to perform the duties outlined: Excel, Word, Power Point, Prism, GBR, Power BI Dashboards and Bloomberg

Position Description

• Assist in the design, management and on-going development of the Trading Credit Risk, Framework, Policy and limit structure; appropriate to the risk appetite of the firm.
• Make input verbally or in writing to aid good credit risk decisions; including within the relevant committees. Make clear and reasoned recommendations.
• Make recommendations and exercise judgement, cognisant of risk management policies, firm appetite and industry best practice.
• Provide input into the monthly Credit and Counterparty Credit Risk Committee and be principally responsible for conveying all relevant information to members to enable the Committees to fulfil its purpose;
• Automating the manual processes relating to exposure monitoring and reporting.
• Review credit risk related legal documentation; proposing enhancements as appropriate with a view to standards of market practices. RM sign-off of transaction documentation Execution Memos
• Accountable for production/review of Credit Risk M.I. and daily exposures monitoring;
• Daily interaction with Front Office. Promote a business appropriate trading credit risk culture. Represent Risk Management professionally in discussions within the firm, the wider group and externally. Authorise basis upon which trader may proceed or otherwise, taking account of credit limit approval, documentation finalisation and other salient factors
• Raise issues and concerns as appropriate promptly with Management
• This role will work with trading credit risk officers and Front Office.
• Provision of risk services to regional entities in accordance with the relevant intragroup SLA/intragroup arrangements, where applicable
• Extensive product knowledge, particularly across derivatives but also in FI space (Repo, Securities Borrow/Loan). DPG business model to change; scope to be determined but at a minimum expansion of inflation desk and deal contingent hedges.
• Excellent understanding of various master agreements including ISDA/CSAs, MRA, GMRA, GMSLA, MSFTA
• Comfortable interacting across trading and sales teams in first line (Securities and Derivatives)
• Development and mentoring of junior staff.

Competencies

What we offer

For all the expertise and experience you bring to help us make a difference, it’s only sustainable if we support you to build your career and be your best self so we offer competitive company benefits, centred around promoting positive well-bring and work-life balance. We also believe in fostering a diverse and inclusive work environment, where all team members perspectives and contributions are valued. Initiatives in place which promote a diverse and inclusive culture and healthy work life balance include hybrid working, Sport & Social Clubs and Diversity and Inclusion networks.

As an employee of SMBC you have access to a host of both useful and exciting benefit offerings. See below some of the benefits on offer to you:

• Hybrid and flexible working 
• Competitive paid leave days
• Benefits to support your physical wellbeing, including private medical insurance and life and invalidity insurance 
• Various policies to support your mental wellbeing, including a robust behavioural health network with counselling and coaching services  
• Access a wide range of learning and development opportunities and career progression opportunities 
• Ambitious remuneration package

So, if you like a challenge and want to continuously grow and develop in a role where you will be supported along the way by a dynamic and diverse team, apply today!!