Reporting to the CRO, the Participation and Credit Risk (PCr) department is responsible for establishing the requirements for identifying, assessing, managing, monitoring and reporting participant risk at the firm, including calculation and adjustment of aggregate short position limits and the assessment of compliance with initial onboarding requirements as well as on-going participation eligibility for direct service participants, currencies, and liquidity providers, (i.e., financial institutions with whom enters into and maintains liquidity facilities). The firm is exposed to modest residual credit risk from each settlement member to the extent that they incur a short position in one or more eligible currencies.
The position will work closely with diverse managers across all 3LODs at the Group to
* Develop and maintain statistical and econometric risk models such as indicators of sovereign credit risk and measures of settlement member financial and operational resilience.
* Identify and monitor emerging economic risks/vulnerabilities in the jurisdictions that firm operates in, as well as the global macro-financial environment.
* Perform analyses and prepare reports that summarize and highlight key economic, financial, and geopolitical risks, for senior management
* Collaborate with Technology to develop the appropriate risk infrastructure to house the quantitative models.
The role is prepared to:
* Monitor market and political events relating to sovereign and financial institution of direct service participants and Liquidity Providers, and identify potential areas of financial and operational concerns;
* Conduct macro risk assessments of sovereign jurisdictions and financial institutions that are either existing participant of the ecosystem or are applying to become participant of Settlement Services;
* Contribute to the research and development of internal metrics that quantitatively measure and estimate the degree of potential systemic risk that firm faces.
The position offers a truly global opportunity to apply economic analysis, statistical methods, strategic planning and risk management disciplines to the Group’s global foreign exchange settlement service and the broader Ecosystem. The small size and high caliber of the PCr team offers the opportunity to work closely with the Executive Management Committee and other internal and external risk managers.
Essential Functions
Strategic
The role will have responsibility for a global portfolio of sovereign and financial institutions counterparties and tasked with monitoring and evaluating macroeconomic and banking systemic risks, competitive and regulatory developments, in addition to managing annual strategic portfolio reviews of the sovereign jurisdictions and financial institutions.
The position involves continuous refinement to internal benchmarks, risk analytical tools, processes and procedures for managing country and financial institution risks exposures
The role offers the opportunity to engage in pivotal projects relating to emerging growth prospects for the organization. The position is intricately tied to fostering cross-functional collaborations across the organization, and wielding the ability to shape senior management perspectives and engage with regulators.
* Making recommendations on sovereigns and financial institutions that merit additional attention due to inherent risks, potentially impacting the respective credit limits;
* Monitoring sovereign and financial institutions ratings changes;
* Following and analyzing economic and political dynamics in key developed and emerging market economies, and drawing connections between these shifts and their impact on ecosystem.
Essential / Desired Qualifications
* Master’s degree in Statistics, Quantitative/Mathematical Finance, Economics, or a related quantitative field, and a 7+ years of professional experience in the job offered or in a related role with the experience of:
* Banking institution market or credit risk model development, model implementation, and data analysis using R and
* Analyzing, understanding and presenting the risk profiles of banking institutions and sovereign jurisdictions using both qualitative and quantitative methods
* Excellent understanding of financial markets risks and macroeconomics indicators.
* Exceptional writing and presentation skills
* Strong organizational and time-management skills, as well as critical thinking