Bank Overview:
BNP Paribas is a leading bank in Europe with an international reach. It has a presence in 73 countries, with more than 196,000 employees, including around 149,000 in Europe. The Group has key positions in its three main activities: Domestic Markets, International Financial Services (whose retail-banking networks and financial services are covered by Retail Banking & Services) and Corporate & Institutional Banking, which serves two client franchises: corporate clients and institutional investors.
BNP Paribas Corporate and Institutional Banking is a globally recognised leader offering capital markets, securities services, financing, treasury and advisory solutions.
Business Area/Dept Overview:
This role is within RISK Markets and Financial Institutions (MFI) – Analysis & Decisions – Global Equities Market Risk team. This team is covering the market risk generated by the Global Business Line (GBL): Global Equities, within Global Markets (GM).
Its main responsibilities are:
1. Business line leadership
Centre of expertise and point of contact for the business line, able to provide a holistic view of risks and activities, escalating issues as appropriate. Understanding the application of processes under the responsibility of other RISK MFI teams to the business line.
2. Risk anticipation and detection
Anticipation, detection, monitoring, analysis, and opinion on all market and issuer risks:
-Early identification and in-depth review of hidden risks and potential threats, concluding with a clear view and recommendation for risk mitigating actions.
-Escalation to RISK and business management.
3. Risk control framework
Design and continuous improvement of the market risk control framework including risk analysis tools, limits and stress testing. Holistic vision on valuation and capital metrics, escalating issues or concerns in these areas.
Job Purpose
The Intern position is available within Counterparty Risk team, part of RISK MFI Analysis & Decisions, based in London. RISK MFI Analysis & Decisions is part of the RISK Function within BNP Paribas.
Counterparty Risk team covers the following main responsibilities
- Analyse counterparty exposures generated by all BNP Paribas OTC/SFT and prime services (PB and DEC) activities.
- Counterparty coverage includes all Corporates, Financials, Sovereigns, Managed Funds and Hedge Funds across activities.
- All derivatives trading activities are covered: Credit, Interest Rates, Inflation, FX, Equity, Commodities as well as Securities Financing.
- Analyse new transactions / on-boarding of new clients from a counterparty risk point of view when trades are either complex in terms of pricing or beyond current risk appetite levels (such as Credit Limits, Counterparty specific guidelines and Bank risk policies).
- Understand counterparty exposures, mostly through market risk analysis (specific trades, products, liquidity, assessment of potential exotic nature, difficulty to replace the positions).
- Design, in close collaboration with Front Office/Market Risk Teams relevant stress-tests on a regular and ad-hoc basis. Analyse results to issue recommendations on market risk sensitivities by counterparty.
- Contribute to regulatory projects when necessary
- Monitor the collateral received and posted as part of the financing activities of the Bank but also as part of the CSAs, either as initial margin or variation margin
Core accountabilities of role
The responsibilities of the internship are:
- Perform analysis on BNP Paribas’ risk by counterparty type (Hedge Fund / non-Hedge Fund), by group/asset manager or by sector. This analysis is done at activity level (OTC/PB/DEC) or across activities. Analysis is generally focused on stress testing and liquidity of the underlying markets.
- Perform analysis on BNP Paribas’ collateral positions coming from VM/IM or Financing activities (SLAB/Repo/TRS). Continuous monitoring and analysis of the underlying collateral risk is required, i.e. quality, valuation, concentration & liquidity. Also, be on top of regulatory changes related to it (e.g. BIM).
- Present the outcome of this analysis in dedicated forums (main position meetings) to the front office or the management of the RISK department. The analyst will summarise the main risk drivers, provide an opinion of the risks taken.
- The analyst will interact closely with Market Risk teams as well as traders/sales and T2RS/S&R teams to understand the materiality of the exposure and intricacies of certain types of transactions. Participate to discussions between Risk and Business to define actions to align exposures with current risk appetite levels.
- Contribute proactively to the development of analysis tools. Innovation within the team and challenge existing processes and methodologies.
- The analyst will identify main counterparty risk drivers based on market risk sensitivities analysis combined with knowledge of counterparty risk metrics and methodologies. To follow sensitivity analysis and stress tests of the portfolio.
Knowledge, Skill and Experience
- Excellent analytical, IT and quantitative skills to extract and aggregate promptly risk at the required level with a critical eye on quality of data. Ability to manipulate large amounts of data essential. Solid technical skills includin
- Knowledge of Python / R
- Basic understanding of structure of capital markets
- Understanding of different risk metrics and their respective merits and caveats for market and counterparty risk. Knowledge of the below counterparty risk aspects
- Market VaR and Greeks
- Collateral operations and legal agreements (CSA terms)
- Stress testing
- Initial margin models and calculations
- Counterparty credit risk exposure models
- Ability to react quickly but precisely in high pressure trading situations with Front Office interactions.
- Strong interpersonal and communication skills (written and verbal) to further build the business / risk relationship and to clearly and concisely report the risk in a jargon-free way.
- Ability to work in a team and interact with multiple stakeholders of different technical backgrounds.
Interactions
The analyst will interact with Traders and Sales teams, other RISK teams as well as IT teams, Front-Office Risk teams such as T2RS Team (Trading and Risk Strategy) and Strategy & Risk Teams.
Start Date: January/February 2025
Salary: Competitive
Length of Internship: 11 months
Location: London
