PERM - RMD - Trading Credit Risk - VP

Section 1 - Details

Job Title / Corporate Title

Vice President, Trading Credit Risk Management

Department / Group

Risk Management, Trading Credit Risk Management

Responsible to / Line Manager

This should be a role title, not a named individual.

Executive Director, Credit Portfolio & Policy

Direct Reports

This is about scope of the role. Please include job titles and the reporting relationship.

0

Location

London

Date Prepared

December 2024

MiFID Knowledge and Competence

General awareness

Certification regime

Out of scope

Section 2 – Purpose of Job

1. 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.
2. 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.
3. 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.
4. Counterparty Risk Monitoring: implement daily monitoring and review of counterparty risks across EMEA with explanation of risk drivers responsible for large daily moves
5. 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.
6. Policies and Procedures: to ensure all Frameworks, policies and procedures are pertinent well documented with approval governance, up to date, and adhered to.
7. To liaise with other group entities and attend scheduled and ad hoc meetings to ensure a group wide consistent approach.
8. Ensure EMEA region counterparty risk management practices are inline with BCBS Guidelines for Counterparty Credit Risk Management.

Section 3 – Background

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. In addition, the role includes oversight of similar risks and developing a consistent Risk Framework across the EMEA region.

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.

Section 4 – Facts / Scale

• Derivatives portfolio ca. $10bn MPE. Fixed Income portfolio ca. $0.5bn market value
• Securities and Securities Financing Transactions portfolio of c.$12bn

Interfaces: MD Credit Portfolio and Policy, Chief Risk Officers, other Heads of functions, RMD and CD senior staff, Head of Credit CM Inc, senior marketers and relationship managers.

Section 5 – Accountabilities & 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.
• 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;
• 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
• Prime Brokerage or relevant equity financing experience; firm understanding of volatility and liquidity in setting margin levels, provide approval recommendation to senior management for margin relief, monitor concentrations and illiquid positions at both the counterparty and portfolio level, knowledge of hedged equity trading strategies
• Hedge Fund coverage (to support SME in this area) – across various strategies. Due diligence, rating experience, assistance in limit setting and advice on IM levels (per developed frameworks)
• Wider counterparty coverage. Broad FI coverage (per DPG ambitions in this area) including NBFIs.
• Extensive product knowledge, particularly across derivatives but also in FI space (Repo, Stock 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, MSLA, MSFTA
• Comfortable interacting across trading and sales teams in first line (Securities and Derivatives)
• Development and mentoring of junior staff.

Section 6 – Knowledge, Skills, Experience & Qualifications

• Formally credit trained and an understanding of the management of trading credit risk gained over 7+ years at a leading investment/commercial bank with significant counterparty business
• Excellent knowledge of Fixed Income and Derivative products and the risks that arise from them (Bonds, Repos, Derivatives)
• 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, Cassini, GBR and Bloomberg

Section 7 – Challenges (This section is optional)

Guidance Notes

• The main challenges that this role will encounter - these should be brief descriptions of 2 to 4 areas which are fundamental to enable this role to achieve its core purpose e.g.:
• ‘in order to successfully manage the change to a new project management approach, this role will be required to engineer a successful culture change within an organisation that has worked in a traditional manner for some time and can be resistant to change’.