BNP Paribas Asset Management is the asset-management arm of the BNP Paribas group. With assets under management totaling over EUR 500 billion and a staff of more than 4,000 present in over 40 countries, BNP Paribas Asset Management offers a comprehensive range of financial management services to institutional clients and distributors around the globe.
BNP Paribas Asset Management also heads a line-up of specialized management companies, each with its own area of expertise and investment policies tailored to a particular asset class or local needs.
BNP Paribas Asset Management is searching for:
Chief Risk Officer / Conducting Officer (M/F)
SCOPE & COVERAGE
■ Business: all third-party and corporate activities present in BNPP AM Luxembourg (AM Lux)
■ Risks: ALM, credit, counterparty, market &liquidity, Investment Compliance and operational risks related to corporate and third party activities (portfolio management for third parties i.e. investors in funds)
■ The CRO Lux reports locally to CEO AM Lux and globally to BNPP AM RISK (Investment and operational Risks jointly involved in the annual appraisal process)
■ Act as RISK representative: primary interlocutor of the CEO AM Lux and local authorities (CSSF);
■ Belongs to the Executive Committee of BNPP AM Luxembourg;
■ Conducting Officer of the Management Company, responsible for Risks matters
DEFINITION OF RISK POLICIES PROPORTIONAL TO THE AM LUX RISK PROFILE & CARTOGRAPHY
1. Corporates and Proprietary activities
Under the procedures and the scope of delegation granted by the BNP Paribas Group, calibrate risk policy of AM Lux Corporate and proprietary activities including Operational risks
■ Define and monitor Key Risk Indicators (KRI), raise alerts to AM Lux Management and BNPP AM RISK function
■ Oversee and ensure active management participation on stress testing exercises impacting revenues and capital until winding down all or part of the local activities
■ Execute liquidity risk management responsibilities described in existing regulatory guidance
2 Third Party activities related
Monitor Operational and Investment Risks on AM Lux assets under management (indirectly through delegation).
■ During the fund structuring, define and review pertinent risk indicators in accordance with a risk profile defined for each mutual fund or vehicle, and compatible with the risks/return expected by the clients at stake. As a result, check that the risk highlighted are properly disclosed to investors in prospectus and commercial leaflets
■ Provide a consolidated view of third party risks to relevant stakeholders and propose corrective actions where necessary
IMPLEMENTATION OF THE RISK POLICIES FRAMEWORK
Ensure the establishment and effective execution of risk controls
■ During the fund management period, report risk management deficiencies derived from risk breaches or incidents and impacting reputation and/or fund performances
■ Oversee the development and roll out processes, the risk systems for implementing, monitoring and testing compliance with the aforementioned policies, programs and risk controls
■ Monitor the adherence of the portfolios management teams to the risk profile framework and escalate actual or potential risk limit breaches
Main activities, responsibilities and final results:
The Chief Risk officer (CRO) of BNPP AM Luxembourg is responsible for Investment Risk, Investment Compliance and Operational Risk and Control. As such, the CRO must manage and federate his team as well as coordinate all the tasks related to those activities.
1) Investment Risk (including Investment Compliance):
Ensure for all Luxembourg funds, the conformity of the BNPP AM Risk Management framework with the local legislation and the legislation of the countries where the Luxembourg funds are registered. Supervise the Investment Risk function in Luxembourg including Investment Compliance (monitoring of investment restrictions) team.
· Play an active role in building up further and discussing the Luxembourg risk framework within the AM RISK function, in line with the local regulatory request; Be a real partner of the RISK function, helping to ensure proper inclusion of the local regulatory requirements in the global risk framework and of the Lux Management Company.
· As CRO acting as RISK representative:
- Provide Investment Risk Management oversight and analysis for all Luxembourg domiciled structures (UCITS & AIF) to ensure they meet regulatory requirements ;
- Participate in local risk committees for Luxembourg and if required follow up on risk audit findings ;
- Chair the Benelux Fair Value Committee ;
- Participate in Board meetings for all funds ;
- Regular contacts on risk issues with the regulators, external auditors ;
- Team Manager.
· Participate in and reporting to local Management Committee through the production and comment of a monthly Risk dashboard (UCITS & AIF) on diverse regulatory risk figures: commitment, VaR, UCITS & AIF leverages, coverage rules, Structured debts %...
Logistical framework and resources
· Coordinate the preparation and ensure the on time implementation of the Risk framework in accordance with the CSSF Circulars, ESMA guidelines: UCITS & AIF requirements, through the definition of :
· Local Risk Management Process (RMP) and Risk Management Policies ;
· RMPs specific to foreign regulators.
· Play an active role in the processes related to the Fund structuring (mergers, launch of new structures, investment policy, investment universe, etc.) by acting as key counsel on Risk matters for the various stakeholders (Product developers, Fund Managers, Fund Administrators and Investment Compliance). Check that the risks associated are properly disclosed to investors in prospectus and commercial leaflets, which are reviewed when the Fund Validation Committee takes place. In that context :
· Define the risk profile of each-fund through a set of regulatory, contractual and internal guidelines consistent with client needs, i.e. derivatives and market risk restrictions, global risk exposure constraints (Leverage, VaR, Tracking error…).
· Ensure that related and comprehensive reports are produced and communicated in a timely manner to the business and to the management;
· Abroad (Asia: HK, Taiwan, Singapore, Korea, Swiss, etc.) : ensure local regulatory investment risk requirements for Luxembourg domiciled funds registered (and to be registered) locally but elsewhere than Luxembourg are met.
· Supervise the Investment Compliance team which main responsibilities are:
· Perform Investment Guidelines monitoring activities, ensuring the portfolios of AM Lux scope comply with the applicable restrictions at all times.
· Analyse potential breach alerts and liaise with Portfolio Managers to get clarifications and resolving action plans
· Ensure timely reporting of all relevant issues to local compliance and Senior Management
· Stay up to date with the different financial regulations
· Represent Investment Compliance during Validation Committees
· Prepare for Audits and address audit findings
2) Operational Risk and Control:
Supervision of the ORC tasks and ensuring the good implementation in accordance with the Group and BNPP AM principles and regulations.
· Carry out ORC activities in coordination with Central ORC through the Regional Head or directly if necessary.
· Regularly inform the regional and central RISK ORC team and the local Management about the risk situation as well as the control framework; alert as quickly as possible if necessary.
Operational Risk Events
· Investigate risk events identified within the business and escalate in accordance with the BNP Paribas Asset Management (BNPP AM) Incidents Policy.
· Ensure all risk events are promptly captured in the internal and Group incident management databases and adequate corrective measures have been implemented to avoid reoccurrence.
Risk Mapping and Controls Testing
· Arrange and conduct periodical risk mapping workshops across BNPP AM Lux departments to ensure all Inherent & Residual risks and their associated controls have been identified and rated in accordance with the ORC framework.
· Implement a local control plan based on the RISK ORC AM “reference control plan” and local specificities
· Deploy the local control plan: perform 2nd level controls and conduct semi-annual Key Surveillance Points (KSPs) campaigns to test and rate the effectiveness of the existing 1st level controls.
· Ongoing monitoring of policies and procedures to ensure adherence to the BNPP AM Procedures Policy.
· Ensure that up to date procedures exist for all identified key processes and controls.
· Provide Procedures database training to all identified key users.
Management, Committees and Regulatory Reporting :
· Preparation of Risk ORC committees, Management and ad-hoc reports.
Other monitoring activities
· Findings & Recommendations – action plans
- Monitor and liaise with the action owners to ensure all open internal audit/IG and findings and recommendations are addressed and closed by the due deadlines.
- Record in the dedicated Group tool the permanent control action plans related to major incidents and failures identified. Monitor their closure.
- Escalate any potential late closures to management as soon as possible.
· Maintain the fraud prevention program, the follow-up of Third Parties and TAC/NAC coverage
PROFESSIONAL / TECHNICAL EXPERIENCE
· Master’s Degree in Finance or Economics.
· Excellent knowledge of Windows Office.
· Minimum 10 years’ experience
· Financial Risk techniques (Financial Statistical Measures, VaR, Stress Tests…)
· Financial Products and Pricing methodologies (Derivatives & Non-Derivatives)
· Asset Management and/or Risk Management in financial institutions
· (Luxembourg) Asset Management regulatory requirements knowledge
· Knowledge in one of the risk softwares is a plus
· Team management experience.
· Strong team management skills
· Good presentation and representation skill
· Interpersonal relationship skills
· Sense of responsibilities
· Team spirit
· Good writing and synthesis skill.
OTHER SKILLS REQUIRED
· Fluency (written and spoken) in French and English.
· Additional language(s) is considered as an advantage.