IDB2399 - Risk Management Specialist

THE ROLE

The role is responsible for effectively handling risk management activities in particular the credit risk stemming from insurance, reinsurance (commercial and political risks together with credit enhancement offerings) and liquid fund investment operations in an Enterprise Risk Management-ERM perspective. The position requires to review, measure, manage, monitor and report credit and claims risks from business undertakings, on individual and portfolio basis. The scope of the role may be extended to interactive and inter-functional risk review as well as report coordination with operational risk, market risk and country risk functions as applicable and as required by the ERM framework of the Corporation. 

This role requires the candidate to have strong practical knowledge of best practices in credit risk analytics, quantitative financial risk techniques and risk modeling as well as familiarity with ERM architecture. The function reports to the Manager, Risk Management Division.  

KEY RESPONSIBILITIES

Credit Risk Framework 

• Develop and establish credit risk framework and policies for insurance underwriting and investments based on ERM Framework; 

• Review, implement and validate the ‘Credit Risk Assessment Guidelines (CRAG)’ model comprising Financial Institutions (FIs); Country, Projects and Corporates (as applicable);  

• Develop robust credit risk monitoring mechanisms such as Early Warning Signal (EWS) in particular, risk treatment of Notification of Probable Losses (NPLs) and credit risk deterioration of individual exposure and portfolio relating to risk rating;

• Review, recommend and report the credit risk elements arising from the operations and governance of Policyholders Fund (PHF) and Shareholders Fund (SHF) in line with defined Risk Appetite Statement;  

• Review, monitor and report the reinsurance risk transfer and capacity headroom mechanisms relating to Counterparty Credit Risk (CCR) and double default risks with reinsurers; and

• Review, monitor and report the credit risk elements of Liquid fund investment operations.

  Risk Analytics

• Develop and establish an actuarial based risk analytics architecture together with inputs required to feed into related internal models for monitoring, reporting and model validation purposes;

• Calculate and periodically review the technical provisioning model -Incurred But Not Reported (IBNR)- based on expected credit loss reserving methodology in a forward-looking manner in line with the best practices;

• Develop and implement a bespoke credit and claim loss measuring techniques - e.g., PD, LGD, EAD models together with reporting mechanisms in line with the global best practices in loss modeling and accounting standards; and  

• Coordinate with the risk intelligence unit to calculate exposure-wide risk in a seamless matrix for analytics, monitoring and reporting purposes.   

  Risk Capital and Exposure Management 

• Implement, monitor and report the Risk Capital Model and Exposure Management Framework;

• Administer, monitor and report the limit management system of Insurance, Reinsurance, and investment exposure in line with the ERM Framework governance and Risk Appetite Statement;

• Review, suggest and report the overall exposure concentration risk by sector, region, obligor country, policy holders, guarantors, risk clusters, age groups, business lines and product mix, and give inputs to strategy, business plan or any such kind of documents based on the macro-economic and political risk trend and outlook; and    

• Conduct regular stress test and solvency assessment in relation to unexpected credit loss-risk capital adequacy, concentration, counterparty credit risk related to reinsurance and investment from the inputs of the Risk Capital Model and Exposure Management Framework.

  Others

• Develop and establish robust credit risk management reporting tools and transparency disclosure, automate them in conjunction with IT team or appropriate software application;

• Provide support to other functions in Risk Management Division as and when needed for special projects and tasks and assist in the Country Risk Function on internal and external inquiries related to relevant sectors and sectorial risk review exercises; 

• Assume ad hoc project duties and other forms of assignments, as and when required; and 

• Conduct sensitization programs to scale up the risk culture amongst the key stakeholders.

  In addition, the jobholder ensures interactive coordination with Underwriting, Business Development, Reinsurance, Legal Affairs and Claims and Recoveries, and in particular the Country Risk and Operational & Market Risk functions under Risk Management Division, in fulfilment of its responsibilities as the 2nd line of defense.

QUALIFICATIONS AND EXPERIENCE

The candidate should have a Bachelor/master’s degree in quantitative finance/Risk Management/Actuarial/Econometrics /Business Administration/ Mathematics or equivalent and related academic fields.  

• The candidate should have 5-8 years (for Bachelor), 2 years (for masters) working experience in global financial/insurance/export credit/political risk/banking industries in addition to following:

o     At least 3 years’ hands-on experience in Credit Risk Management/Risk analytics/ERM/Capital/debt management etc.

o     Proven track records and experience in managing Credit/Portfolio/Capital risks preferably within Export Credit/multilateral development institutions/Banking industry

o     Mastery in the Risk Management software and applications, risk capital and actuarial models as well as knowledge in solvency II, IFSB, IFRS and Basel regulations would be added advantage.

o     Professional certification e.g. Financial Risk Manager (FRM)/ Professional Risk Manager (PRM), IRM certification, CFA, Risk Management Assurance (CRMA) or similar is preferred.

o     Good command of written and spoken English essential, additional languages (Arabic, French) are an added advantage

PERSONAL QUALITIES AND ATTRIBUTES

Excellent analytical skills coupled with an ability to design and implement practical and proportionate solutions;

• A self-starter who is action orientated with energy and drive. Highly organized and decisive with sound judgment; 

• A team player able to influence and energize the Corporation whilst knowing when to take a stand on key issues; and 

• Adaptive to multicultural working environment and multilateral perspectives.