Head Of Counterparty Credit Ri

Job description

Role Title: Head of Counterparty Credit Risk (CCR)
Business: AMG Risk
New or Existing Role? New
 
Role Purpose


AMG is reviewing its current Counterparty Credit Risk (CCR) management framework and is in the process of defining a new and enhanced Target Operating Model (TOM).  AMG has identified the need for a dedicated resource that can assist with the implementation of the TOM as well as the subsequent maintenance of the CCR framework.

The role holder will be expected to provide strategic input into the implementation of all aspects of the TOM to ensure that the resulting framework builds on AMG’s current capabilities, ensures regulatory compliance, delivers improved efficiencies, ensures consistency of approach, delivers solutions that are both flexible and scalable, and provides improved reporting.

The role holder will assist with the implementation and maintenance of the framework and provide globally consistent management information to all key stakeholders including the AMG Global RMC.  The role holder will provide support, guidance and training to the regional Risk teams and liaise with other Global Functions to ensure the successful delivery of the firm-wide TOM.

Whilst CCR will be managed as a discrete discipline of risk, the role holder will be expected to work closely with other key stakeholders within the Risk function on other risk disciplines (e.g., Investment Risk) to ensure that any data requirements are aligned.
 
Impact on the Business
Framework implementation
The role holder is expected to assist the Global Head of Risk Policy and Governance with the implementation of the CCR framework, in particular:
 


Developing and maintaining different models and methodologies used to perform credit reviews on brokers/counterparties;

Provide strategic input into AMG’s credit policy including any key credit terms that are agreed with counterparties;

Working closely with the Program Manager to ensure the successful delivery of any aspects of the framework that are caught by a formal program of work;

Developing testing plans, engage with local Risk teams as appropriate and ensure that testing is completed in line with the agreed specifications;

Communication to key stakeholders on the progress of the project;

The provision of training to key stakeholders on the new framework etc.
 
Governance and Control
The role holder is expected to:


Effectively communicate client exposures and concentrations to all key stakeholders and assist with the production and delivery of reporting to Fund Boards and Management Companies;

Work closely with the Global Head of Risk Policy and Governance to review and maintain AMG’s CCR framework and policy to ensure that it remains up to date and fit for purpose, and that all such that all clients are afforded the same service level regardless of their location.

Participate in change initiatives relating to CCR (e.g. Dodd Frank, EMIR Central Clearing).

Act as a subject-matter-expert on derivative traded products and CCR methodologies used to manage and mitigate the risks.

Undertake real-world simulation exercises with Risk and other Global Functions (e.g. Operations, Legal) to assess the efficacy of the control environment and communicate findings to the AMG RMC.
 
Credit due diligence


Following the implementation of the new TOM, the role holder is expected to:

Perform credit reviews on AMG’s key brokers/counterparties, provide recommendations, set risk limits and communicate decisions and findings to key stakeholders and the local Risk teams;

Assist the local Risk teams with any questions they might have when performing credit reviews using the centrally agreed model.
 
Exposure Quantification and Management


Assist with the specification and/or build and maintenance of databases relating to credit documentation (e.g., ISDA, CSA, GMRA etc.), trade details, collateral movement etc.

Collaborate with Legal to review existing client credit documentation terms (e.g., margin periods, eligible collateral, threshold amount, minimum transfer amount) and as documents come up for review with counterparties and new client documents are negotiated, successfully transition to ISDA 2012 documents.

Using the default probability methodologies, design, test, validate, maintain and develop counterparty credit risk exposure methodologies (e.g., Mark to Market (collateralised and uncollateralised), Margin Period of Risk, Expected Exposure, Potential Future Exposure, Effective Expected Positive Exposure, Exposure At Default and Risk Weighted Assets) to enable quantification and management of global client credit exposure.

Design of CCR exposure methodologies and risk batch process should be such that different levels of aggregation (e.g., traded-product, client, fund-product, geographical region), stressed and wrong-way exposures.  This will likely require collaboration with Operations for data sourcing and IT for effective batch processing.

Collaborate with, but remain independent from, Credit Investment teams such that any convergence or divergence between the methodologies between Risk and the Investment teams can be examined and explained to the Risk Management Committee and to global regulators.

Provide oversight on the eligibility / suitability of collateral.
 
 
Customers / Stakeholders
The role holder must be able to:


Influence and collaborate with stakeholders and business partners, build strong relationships to ensure consensus and influence outcomes;

Engage across business lines and regions; promote strategic business discussions on the operational effectiveness and implementation of AMG’s CCR framework;

Provide support, guidance and training to local Risk teams;

Ensure that Dealers/Fund Managers understand how CCR is managed and mitigated in the first line, suggest control enhancements and provide guidance and training;

Work closely with the Front Office Credit Analysts to ensure that their view on the creditworthiness of AMG’s counterparties is suitably aligned with that of the Risk function;

Work closely with the local Operations functions to understand processes relating to CCR e.g. trade processing, collateral arrangements, on-boarding etc.

Work closely with the global Operations function to develop new global processes or new methods of sourcing and storing data items relating to CCR - particularly those that are required by AMG Risk as part of the target operating model;

Work closely with Compliance and Legal to understand changes in the regulatory environment and how they might impact AMG’s CCR framework;

Maintain good relationships with AMG’s key counterparties and work closely with Legal on matters relating to CCR (e.g. credit terms) to ensure that AMG adopts standards that offer the best protection for clients;

Work closely with senior management teams, committees and key business managers to deliver relevant risk reporting across AMG entities and assets.

Engage with other parts of HSBC Group in the delivery of ad hoc projects.

Support RFPs and client presentations where necessary.
 
Leadership & Teamwork


As a role model, encourages collaboration and team work within the global and regional risk teams as well as the provision of support and guidance.

Drives a collaborative and collegiate approach in areas of Risk, Operations, Legal, as well as customer groups, regions and Global Businesses to ensure consistent strategy and adherence to Group credit Standards and Policies.

Promotes the Group’s Values and strategy by creating a positive work environment and promoting teamwork to drive engagement
 
Operational Effectiveness & Control


Encourage best practice across AMG businesses.

Run processes in an auditable and transparent manner. Explain processes to Internal Audit and to regulators, and address issues where identified.

Leadership over all regulatory and compliance matters and the management of operational risk in the area of responsibility.
 
Major Challenges


The principal challenges of the role is the delivery and implementation of a TOM, persuading stakeholders of the need for positive change, assisting to realign existing business processes, and working with a large number of stakeholders.

Providing a bridge between quantitative and non-quantitative, business orientated strategy/business requirements and technical execution frameworks and vice-versa.  The role holder is expected to develop and retain a deep familiarity of and personal acceptance in both ‘worlds’.

Strong communication skills on a strategic, business and technical level.

Broad role encompassing all customer groups, business lines and risk type categories as well as a wide range of regulatory requirements.

Ability to develop new execution frameworks from scratch and lead with confidence into the unknown.

Defining the strategic vision and execution approach and dealing with complex and at times conflicting requirements.

Ensure that potential risk areas are accurately recognised and provide assurance that solutions meet appropriate standards and policies and decisions are made in line with the approved Decision Making Framework, the jobholder needs to have independence of thought and lateral thinking.

Ensure that risk policies and frameworks are maintained in accordance with regulatory requirements which are changing rapidly.
 
 
Role Context


The role holder works under consultative direction of the AMG Global CRO, to who matters of fundamental significance will be referred.  The role holder will also need to consult and seek support from regional heads of Risk and other Global Functions to ensure successful interpretation of strategy and policy as well as implementation and execution of the framework and achievement of common goals. 

The jobholder will not be subject to close supervision, and will be expected to exercise independent initiative in proactively overcoming obstacles to success, dealing with uncertainty and changing circumstances, such as interdependencies, opportunities or risks.  He / She will be expected to adopt an agile and flexible approach to work and an outstanding level of professionalism and conduct. 
        Management of Risk


The jobholder will also continually reassess the operational risks and likelihood of operational risks associated with the role and inherent in the business, taking account of changing economic or market conditions, legal and regulatory requirements, operating procedures and practices, management restructurings and the impact of new technology. 

This will be achieved by reviewing risks associated with the role and inherent in the business, taking account of changing global economic or market conditions, legal and regulatory requirements, operating procedures and practices, management restructurings, and the impact of new processes. Effective and timely remedial action should be evidenced.
 
Observation of Internal Controls

The jobholder will also adhere to and be able to demonstrate adherence to internal controls.  This will be achieved by adherence to all relevant procedures, keeping appropriate records and, where appropriate, by the timely implementation of internal and external audit points, including issues raised by external regulators.

Desired profile

Knowledge & Experience / Qualifications


University degree and/or relevant post graduate qualifications

Strong knowledge of derivatives

Knowledge of the key trading agreements and the key credit risk mitigation strategies

Strong knowledge of Investment Management businesses, the products they trade, and the strategies they employ

Strong knowledge of the methods used by Investment Managers to manage and mitigate Counterparty Credit Risk

Good communicator (oral and written) especially of technical issues to non-specialists

Forward looking and business orientated

Proven experience of leading evolving frameworks in a challenging and changing risk environment

Proven leadership skills and the ability to exercise leadership without authority

Proven experience of discussing complex analytical subjects with non-technical internal and external counterparts

Very strong knowledge of the external environment – regulatory, political, competitors etc.

Evidence of confidently working with individuals of all levels of seniority

Proven ability to work across regions whilst maintaining a global perspective

Demonstration of commerciality with strong financial acumen

Proven ability to work with senior stakeholders and business sponsors

Evidence of ability to make key strategic decisions  
 
 
We are an equal opportunity employer and are committed to creating a diverse environment.

About HSBC

HSBC est l’une des plus grandes banques internationales avec une présence dans plus de 85 pays dans le monde. Elle a été créée en 1865 sous le nom de « The Hongkong and Shanghai Banking Corporation », et son siège social est basé à Londres. En France, HSBC totalise environ 400 agences et près de 10 000 salariés, avec une spécialisation dans plusieurs activités : une banque pour les particuliers, spécialisées notamment dans la gestion de patrimoine, une banque privée (gestion de fortune), une banque d’entreprises, qui s’appuie sur le réseau de l’ensemble du groupe HSBC dans le monde, et une banque de financement, d’investissement et de marchés. En 2012, HSBC France a réalisé un résultat avant impôt de 450 millions d’euros.