Company Purpose:
Our company purpose is to contribute to a responsible and sustainable economy by financing and advising clients according to the highest ethical standards.
Our employer promise is built around three pillars:
- Being a great place to work
- Committed to sustainability and having a positive impact
- Being dedicated to the development of our people
Business Area
RISK MFI – Counterparty Risk Team covers the all the below:
- Counterparty risks generated by any corporate, financial (incl. market infrastructure) or sovereign counterparty.
- Collateral risks generated by Global Markets
Main Responsibilities
- Analysis and monitoring of counterparty risk exposures on selected names or portfolios, by:
- Understanding the origin of the exposures (specific trades, products).
- Designing, in close coordination with Market Risk and credit officers, of relevant risk measurement methods and stress testing, under both internal and regulatory context.
- Aggregating and monitoring, in coordination with Market Risk, across products and Business Units market risk sensitivities by counterparty, hence providing a transversal view.
- Being the central point of contact with credit officers (corporate, FIs and HFs) and supporting them by providing relevant analysis and organizing dedicated forums.
- Defining and maintaining complex overrides, on the global scope of counterparties, for exotic products.
- Reviewing and analysing, from counterparty risk point of view, all complex transactions.
- Being the central point of contact for collateral within RISK:
- Define and maintain eligible collateral policies and organize collateral processes.
- Issue recommendation to RISK Credit Officers for non-standard collateral exceptional requests.
- Define and monitor the collateral portfolio and concentration envelopes.
- Define and monitor the adequate stress test.
- Define and validate the specific risk framework for Prime Brokerage activities.
- Analysis & monitoring of Economic and Regulatory Measures – including Stress Testing – linked to Counterparty Credit Risk on the global scope of counterparties.
Job Purpose
The Intern position is available within the 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.
The 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.
Key Responsibilities
- Performing 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.
- Performing 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).
- Presenting 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.
- Interacting 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. Participating in discussions between Risk and Business to define actions to align exposures with current risk appetite levels.
- Contributing proactively to the development of the analysis tools. Innovating within the team and challenging existing processes and methodologies.
- Identifying 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.
Requirements
- 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 including:
- 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 Intern 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.
Conduct
- Be a role model, supporting and fostering a culture of good conduct.
- Demonstrate proactivity, transparency, and accountability for identifying and managing conduct risks.
- Consider the implications of your actions on colleagues.
And of course, we expect all our colleagues to embody and practice the Group values (alignment with the Bank’s strategy, commitment, work ethic, integrity and Code of Conduct).
PLEASE NOTE
- You may only apply to four Long Term Internships over the course of a year. These may be across any business area.
- Successful candidates for this long term internship will be considered for London ONLY.
- Please discuss the available start dates with your interviewers.
Unsuccessful candidates’ CVs will be shared with other teams within BNP Paribas and considered for potentially suitable roles. In this way we hope to maximise opportunities for candidates and hiring teams. By submitting your CV for this role you agree to it being shared securely with other hiring teams within BNP Paribas for the relevant recruitment round.
Location: London
Duration: 11 months
A bit more about why you should join us
1. We’re a great place to work
We aim for optimal work/life balance (depending on role, this includes hybrid working, flexible working and agile)
We are proud of our award-winning flexible benefits and health & wellbeing strategy. Our flexible benefits include:
- Generous holiday allowance of at least 26 days (plus bank holidays) – with option to buy and sell holidays.
- Valuable financial plans – a 12% non-contributory pension which has been moved to sustainable investments*, life assurance*, income protection and personal accident insurance.
- Extensive wellbeing and mental health offering – one of the most advanced private medical schemes in the UK, dental cover, wellbeing app, Cognitive Behavioural Therapy support, subsidised gym memberships, bespoke health assessments including genetic testing, Private GP (including digital GP services to parents of employees), Employee Assistance Programme, menopause & fertility support (we are an accredited Menopause Friendly Employer), neurodiversity assessment and support.
- Key onsite services and facilities in London – include physiotherapy, nutrition, massage therapy, physiology, mental health first aiders, seasonal flu vaccinations and free onsite fitness centre.
- Plus, emergency back-up care for dependants, green car leasing, season ticket loan, and a range of other benefits.
* Subject to relevant caps
2. As the eurozone’s largest bank, we are committed to having a positive impact in the world.
For example, we are committed to Net Zero in all of our financing and investment portfolios by 2050. By 2030, 80% of our energy production financing will be low carbon.
But impact for us means more than climate. It means empowering our people every day. Everyone gets four volunteering days each year - in 2023, we achieved over 18,000 hours of volunteering across the UK and reaching over 4,500 young people.
3. We believe in our people
We support our people to develop skills to adapt to the ever-evolving world of work and to prepare for the jobs of today and tomorrow. We do this through a comprehensive training offering, talent programmes, mentoring, career days and inhouse career tools.
We are proud of the number of our people who progress and secure new roles internally. In fact, in 2023, nearly half of our positions in UK CIB were filled internally.
Investing in our people also means we have a collaborative and inclusive culture:
- Direct feedback from our people shows that our internal culture sets us apart from our industry peers.
- Each year, nearly 30,000 employees globally are involved in professional networks that play an active role in promoting Diversity and Inclusion within the Group. These include our:
- Pride Network, Ability Network (which supports disabled employees), MixCity (gender equality network), Women in Global Markets, Women in Global Banking, Women in IT, Diversity Equity & Inclusion in Technology, Early Careers Network, Multicultural Network and Parents & Carers Network.
Equal Opportunities
BNP Paribas is committed to providing a work environment that fosters diversity, inclusion, and equal employment opportunity without regard to age, disability, gender reassignment, marriage or civil partnership status, pregnancy and maternity, race, religion or belief, sex or sexual orientation, or any other legally protected status.
Adjustments
We don’t want anyone to be disadvantaged in our recruitment processes, so if you have a disability or health condition which may mean that you’d benefit from some adjustments or additional support, please let us know as early in the process as possible.
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