The mission of RISK Global Markets (RISK GM) is to provide Senior Management of the Group, of the Operating Divisions, and of RISK with full transparency and dynamic analysis of the risks managed by CIB's Global Markets Units (GM). Specifically, RISK GM mandate is to provide Senior Management with a consolidated and dynamic view of the market, counterparty and liquidity risk profile of GM activities.
The scope of RISK GM is:
- Maintain and deliver day to day risk management excellence and expertise
- Develop further our capacity to anticipate on events, to innovate, to identify emerging risks and think out of the box
- Contribute to the definition of the Group's risk appetite, its risk decision making process and the optimization of capital allocation to support the development of the Operating Divisions
- Contribute, when suitable beyond our perimeter, to the success of the large projects of the Bank and the department, whether regulation oriented or not
- Enable industrialization to increase efficiency
- Interact in an efficient and benevolent way with our colleagues from the other streams and domain
Within RISK GM, the Transaction, Securities and Frameworks (TSF) team is the transversal team responsible for pre-trade analysis, being the prime interlocutor to structuring and marketing. Its mission is to focus specifically on new complex/structured transactions that have either new features or specificities that make them riskier such as wrong way risk, funding, modeling, counterparty risk or operational issues.
The team is representing RISK for most pre-trade approval committees (Transaction Approval Committees "TAC", Securitization Credit Committees "SCC", CIB underwriting committees (bond and equity underlying), The team is also in charge of representing RISK for new activity approvals ("NAC"). In the recent year, various activities involving new complex indices, new types of derivatives (hybrid or new format) or new types of risk (such as prepayment or basis risk) have been analyzed and coordinated by the TSF team.
In summary, the Transaction Securitisation and Frameworks (TSF) team is a transversal team responsible for the following:
- Analysis of new activity and exceptional transaction approvals, primarily generated by the Global Markets business line, representing RISK in the TAC/NAC Validation Committees.
- Credit review and delegation for securitisation activities, structured credit vehicles and other SPV counterparties, monitoring of the market risk for Primary & Securitisation
- Representing the RISK Function in CIB underwriting activities (bond and equity underlying)
- In charge of the Electronic Trading Platforms
- Developing frameworks for risk management of Global Markets activities
Ø Main responsibilities
Analyze and represent RISK GM in the decision process on complex / structured transaction, in particular:
Analysis of counterparty risk (PFE profiles, CSA mechanism, SPVs…), market risk (e.g. specific model, profit recognition or liquidity risk), waterfall structure analysis.
Those part of “convergence” areas: securitisation and structured credit vehicles (both credit analysis and delegation), asset financing (structured repo, equity financing…), underwriting/commitment committees.
Those intermingling credit and market risk in some way (e.g. where there is a strong correlation between counterparty risk and underlying market risk)
Those requiring understanding of legal aspects and regulatory environment, documentation issues, complex collateral, reputation and suitability issues.
Assess and synthesize risk profile/opinion on a given transaction in a holistic manner, provide a succinct yet sufficiently comprehensive written and verbal assessment of such risks.
Follow up of these transactions when they require specific analysis and decisions during their life
Represent RISK GM in all Validation and Approval committees (Transaction, New Activity, Underwriting)
Responsible for the governance, and for selecting, prioritizing, planning, & validating Frameworks for RISK GM, acting as the point of contact of the Metiers & other RISK GM teams. RISK GM’s point of contact “by default” for all other transactions
Ensure strong communication and co-ordination within all RISK teams in order to provide an holistic approach to market and counterparty risk issues
Refer to credit officers (RI2S and Risk Corporates) for credit limits
Refer to Market Risk GBLs for Model / valuation / booking issues, contribution to portfolio risk profile
Show a strong sense of responsibility, good understanding of the rules, ethical guidance, and good judgement
Play a mentoring and training role vis-à-vis more junior team members for complex/structured transaction analysis
Ø Secondary Responsibilities / Contribute to:
Analysis as required by RI2S HF team on their transactions
Risk system representation of specific transactions
Analysis and review of transaction types present in portfolios
Valuation methodologies of complex collateral and back-to-back transactions
Ø Education: 4-Year College Degree or Master’s level in Finance or Economics or Engineering
Ø Experience: The candidate will be able to identify, analyze, and ensure proper qualitative and quantitative risk analysis in new traded instruments. Risks reviewed include market, counterparty, legal, regulatory, compliance risks and their convergence in the structures/products proposed by Global Markets activities.
We are looking for a senior team member with market risk/structuring experience with good product knowledge in derivatives across various asset classes (FX/IR/Credit/EQD/Commodities).
- 3-5 years+ experienced analyst in Risk Management, particularly in counterparty risk and market risk field, with solid work experience in derivatives and/or structured products.
- Understanding of corporate and financial institutions financing and balance sheet mechanisms.
- Some quantitative skills such as understanding of pricing or risk simulation would be much appreciated.
Ø Languages: English
Ø Essential Technical Knowledge/Skills :
- Market risk knowledge in IR/FX, Credit Derivatives and/or EQD/Commodities
- Counterparty/credit risk understanding
- Good general derivative/primary markets product knowledge
- Analytical skills, independent and detail oriented
- Organised, efficient and self-motivating
- Good interpersonal skills, able to deal efficiently and effectively with front office staff
- Team-player with common sense
- Working under pressure and deliver the task / project completed on time
Ø Requirement and Competencies:
- To apply the relevant RISK policies and procedures when appropriate.
- To recognize when a trade requests may need a Transaction Approval Committee (TAC) and New Activity Approvals (NAC).
- To be fully conversant in the analytical methodologies applied by the Bank to quantify the counterparty credit risks and Market Risk associated with derivative transactions and continue to enhance expertise in the Bank’s risk calculation system.
- To proactively assist business lines with structured transactions to ensure that all risks are identified and to propose appropriate risk mitigation techniques if required or deemed necessary.
- To establish and maintain strong communications lines with front line businesses and other RISK management teams, as well as other Functions - Legal, Compliance, ITO Middle Office, Collateral Management, Finance, Tax.
- To maintain regular internal contacts within RISK Function (e.g. ERA, RI2S, RISK Corporates, RI2S CRC).
- To maintain regular contacts with the Bank’s risks analytics team in order to learn and adapt new methodologies as and when introduced.
- To be familiar with the Regulatory topics impacting risk analysis and decision.
- To make recommendations to appropriate credit delegation holders for their final approval.