Senior Transaction Risk Analyst
The bank for a changing world. With strong roots anchored in Europe’s banking history, BNP Paribas supports its clients and employees in today’s changing world and has positioned itself as a leading bank in the Eurozone and a prominent international banking institution.
BNP Paribas has been recognized as the 2019 World’s Best Bank for Corporate Responsibility by Euromoney magazine. This reflects our commitment to financing the economy in an ethical manner, developing and engaging our people, being an agent for positive impact on society and for combating climate change. BNP Paribas contributes to the real economy by providing solutions to a wide range of clients: individuals, community associations, entrepreneurs, SMEs, corporate clients and institutional investors. The Group helps them realise their personal and professional projects through solutions spanning financing, investment, savings and insurance.
BNPP has a significant presence in the UK with a 150-year history. Whilst recognised as a leading European bank, BNP Paribas in fact operates in 72 worldwide countries with around 200,000 employees. With such a diverse set of banking coverage (ranging from asset management insurance, retail banking, personal finance, vehicle leasing to investment banking) the career opportunities within BNPP are vast, international and attract a diverse staff base.
Business Area/Department Overview
The RISK department aims at being a partner of the businesses by contributing to their sustainable development, but also a gatekeeper to ensure risks taken remain compatible with the Group’s Risk Appetite and its strategy. RISK teams engage in an upstream dialogue with the business to better understand their strategy, objectives, deal and then RISK expresses its opinion and recommendations. The RISK function is independent, reporting directly to the CEO and Group Board.
Our risk management function (“RISK”) is recognised in the industry as being first tier.
Our main missions are to:
• Advise the Bank on risk appetite definition; credit risk, counterparty risk, market risk, liquidity risk, operational risk, cyber risk and other potential risks.
• Contribute as an objective “second pair of eyes” that risks taken on by the Bank align with its policies through analysis, valuation and documentation.
• Report and alert bank management of the status of risks to which the bank is exposed.
RISK is a good place to work because of the breadth of opportunities. With over 5000 employees worldwide and reflecting the overall BNPP group culture, RISK benefits from and encourages a diverse staff base with many different nationalities, cultures, levels of experience and academic backgrounds.
Our staff well-being is an integral part of the “people care” values within our group and this is reflected in our award-winning flexible benefits package, flexible working environment and support for people’s health and well-being (https://www.standardlifepensions.com/wellbeing//health-and-wellbeing/mental-health.page). The culture fosters career longevity and internal mobility, while equally supporting new graduates and talents. Due to the varied mix of experience, fresh talents benefit from learning from long standing staff who are always happy to share and teach their extensive experience and wide breadth of knowledge.
Highly comprehensive internal training courses and programmes targeted at developing talents at all levels complement the training on the job.
RISK employees also connect through strong employee networks (Multicultural, LGBT, Gender Balance, Disability, Diversity and Inclusion, Early Career, Parents and Carers), social committees, sports and mentorships.
To find out more about why you should join BNP Paribas please visit our website or try some of the links below:
Team’s Main Mission Overview
The Transactions and Electronic Trading (“TET”) within RISK Global Markets (“RISK GM”) is the team responsible for analysing and approving complex structured transactions and new activities predominantly initiated by Global Markets.
Transactions and new activities analysed by TET have either new features or specificities that make them bespoke and therefore riskier than their standard / “vanilla” transaction counterparts. For example, they may entail the following pronounced risks (not exhaustive): counterparty risk (incl. long-dated or wrong-way risk), market risk (exotic / illiquid), modelling/valuation risk (pricing, valuation and reserves), reputational/suitability risk, funding risk, underwriting and distribution risk and operational risk. Additionally, they may have to be booked in a non-standard way, which will affect how risk exposure is captured / reflected in the risk systems.
The transactions and activities analysed by TET are approved through the following formal committee forums: Transaction Approval Committees (“TAC”); New Activity Committees (“NAC”);
Fixed Income and Equity Underwriting Commitment Committees. TET acts as the Member for RISK, in which RISK has an escalation and/or veto right.
Additionally, TET acts as the focal point of contact for the business in the approval governance and related forums for eTrading and eCommerce domain of Global Markets.
TET is also in charge of monitoring the market risk undertaken by Primary via bond underwriting mandates and has credit delegation over counterparty risk taken to Special Purpose Vehicles that house structured transactions.
Given its mission, TET is the prime interlocutor to Structuring and Marketing teams of Global Markets. Importantly, given the complexities of most requests and the transversal nature of the risks to be on-boarded, TET is in constant and close dialogue with other teams from RISK and Functions:
- RISK GM (e.g. Market Risk, Counterparty & Financing Risk),
- RISK Institutional and Securities Services (i.e. credit team for financial institutions)
- RISK Corporate (i.e. credit team for corporates)
- RISK Operational Risk Control (for operational risk aspects)
- RISK Enterprise Risk Architecture
- RISK Regulatory Strategy
- Other CIB Functions: Legal, Compliance, Finance and Drive/Operations.
TET’s added-value is its ability to analyse structured transactions and activities from a holistic manner, taking into account all the salient risks in a qualitative and quantitative fashion. The family of risks include (list not exhaustive): counterparty risk (PFE profiles, CSA mechanism, SPVs…), market risk (e.g. when specific model, profit recognition or liquidity risk appear), structural (waterfall structure analysis, legal definition) and reputation & suitability perspective. TET aims to ensure that its team members have diversified profiles, from ex-structuring, trading, operations, legal, market risk and credit related backgrounds. Importantly, we remain a culturally diverse and inclusive team.
Job Description & Scope
We are looking for a senior team member to join us with market risk or structuring experience and have good product knowledge in derivatives across various asset classes (FX/IR/Credit/EQD/Commodities).
The candidate will be able to identify, analyse the main risks of the transaction or activities under TET London’s remit, in a qualitative and quantitative manner. Once ready, the Senior Transaction Analyst will be representing RISK in the various approval forums previously mentioned.
In particular, the candidate will:
- Be able to understand and take into consideration all business and transaction-related risks (market, credit, counterparty, regulatory, reputation, operational setup etc.)
- Assess and form an opinion on a given transaction in a holistic manner through gathering, if needed, expert opinions from the relevant teams on the various risks
- Ensure strong communication and co-ordination within all RISK teams in order to provide an holistic approach when on-boarding a request
- Provide a succinct yet sufficiently comprehensive written assessment of such risks and be able to articulate the same verbally
- Present RISK recommendations and opinions in all Validation and Approval Committees
- Understand the abilities and limitations of operational framework of the proposed transactions and provide solutions/plans to try to accommodate the business request
- Participate in the definition of the risk management framework to support new business growth initiatives (e.g. Contingent M&A Derivative Hedges; Inflation repacks; Instruments related to acquisitions done by Global Markets; de-risking / distribution of risk strategies)
- Show a strong sense of responsibility, good understanding of the rules, ethical guidance, and express good judgement
The role involves strong interaction with the Front Office, Business Line representatives and other Functions (e.g. Legal, Compliance, Finance, OPC etc) so the ability to build and maintain a good, strong and constructive working relationship is essential.
• Scope: TET London’s remit (EMEA / UK)
Experience, Qualifications & Competencies
Essential Skills and Qualifications:
- University graduate and/or post-graduate level required with solid work experience in finance, derivatives and/or structured products
- CFA, FRM, MBA, CQF or equivalent
- Ability to understand complex structures (through SPVs for instance); understanding of the implications of CSA/ISDA documentation is a plus
- Quantitative skills such as understanding of pricing or risk simulation
- Understanding of corporate/financial institutions financial statements and financing needs
- Ability to challenge ideas in a constructive way, ideally by proposing alternative solutions
- Market risk/ structuring knowledge in IR/FX, Credit Derivatives and/or EQD/Commodities
- Good general derivatives/primary markets product knowledge
- Counterparty/credit risk measurement understanding
- Strong problem solving / analytical skills
- Very good writing and verbal communication
- Persuading & influencing soft skills
- Good time management and personal organisation
- Balance between Team spirit / Self-initiative
- Strive for excellence and knowledge
- Managerial experience
- Coding /Programming Languages (e.g. Python; R)
- Project management (lead or contributor); practical deployment of “The Lean” methodology
• 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, partners and clients before making decisions, and escalate issues to your manager when unsure
Please note that all applicants must disclose whether that they possess the right to work in the U.K. as per the Immigration, Asylum, and Nationality Act of 2006