Head Of Economic Capital Analytics

Job description

Role Title: Head of Economic Capital Analytics
Business: Risk Management
New or Existing Role? New
 
Role Purpose
·         The Wholesale Credit and Market Risk (WMR) department within HSBC Group Risk measures and monitors, globally, credit risk, wholesale stress testing impacts, impairments, economic capital for retail and wholesale credit, and market risks arising from lending and trading activities for both the wholesale and retail areas, and develops wholesale models to increase business efficiency.
·         This role is responsible for the delivery of the Economic Capital demand calculation for Regulatory and internal disclosure to key stakeholders, ensuring that it meets all the regulatory requirements as well as providing appropriate input to discussions about risk appetite for the current and future portfolio.
·         Responsible for the liaison between the global businesses and finance to promote a consistent and common measurement of economic capital for pre-deal checking, ex-post profitability analysis, and economic capital demand for the Internal Capital Adequacy Assessment Process (ICAAP) and Risk Appetite analysis.
·         The strategy for the deployment of economic capital models across the group is in line with best practice for the purpose of (i) risk management, and (ii) compliance with regulatory frameworks. One of the primary objectives of this team is to ensure that economic capital calculation and related analysis such as concentration risk and correlation risk measurement are executed consistently across WMR covering the trading, the banking books and the retail portfolio.
·         In addition the team will, promote initiatives ensuring that the governance, the methodology and the IT infrastructure are suitable to make economic capital integrally part of risk management decisions and part of HSBC business strategy. This will involve coordination of teams across Group WMR including (i) providing methodology guidance to the local sites by working in conjunction with the Regulatory Risk Analytics team (RRA), (ii) consolidating results, and (iii) presenting analysis to Senior Management.
·         Ensure that economic capital is used appropriately, and according to RRA global standards, by the regions and fully integrated into the risk appetite process. It is expected that there will be clear linkages between this role and the portfolio management process.

The role holder will direct, cascade and drive this strategy to the team  and businesses and ensure the strategy is being globally consistently applied within HSBC. The role is needed due to the regulatory requirement. 
The implications of not having this role are that HSBC will not meet regulatory requirements about assessing the solvency of HSBC, which could result in regulatory penalties and fines, have reputational impacts, and decrease profitability.
·         The role holder will deal with complex queries and failure to fulfilling this role will lead to significant delays.  The role holder will have strong influencing skills to drive the strategy, and will have the ability to deal with complex queries and escalate only when required.
 
Key Accountabilities
Impact on the Business
·         Set the strategy for economic capital models and uses across Credit Risk, Counterparty Credit Risk and Market Risk.
·         Drive GAC and the Regions for the production, analysis, and communication of economic capital results to Senior Management to help them make accurate risk-reward decisions.
·         Direct regular market and economic research to ensure that the economic capital methodology and calibration is suited for pro-active risk management.
·         Contribute to the definition of the risk appetite framework.
·         Drive and cascade the strategy for ensuring that economic capital measures are in line with best practice and meet regulatory requirements. Guide, empower, support and motivate the methodology team to develop robust tools and infrastructure. 
·         Direct the regular production of economic capital numbers for the semi-annual ICAAP process that assesses the bank’s solvency, and the associated regulatory disclosure. This involves (i) managing the timely delivery of results within WMR, (ii) interacting with numerous stakeholders throughout the organisation, (iii) ensuring consistency of methodology and approach, (iv) ensuring that the analysis performed meets regulatory requirements.
·         Lead discussion with regulators for matters related to ICAAP, economic capital, concentration and correlation risk analysis and will therefore demonstrate gravitas and professionalism.

Errors in judgment or failure to meet objectives would result in delays and cost implications for HSBC, which could have regulatory and reputational impacts.
·         Direct and cascade the strategy to the local sites so that (i) economic capital is used appropriately by risk managers, (ii) vulnerabilities in the wholesale and retail portfolio are well understood, and (iii) economic capital and concentration analysis are factored into the risk appetite definition.
·         Direct the strategy for economic capital based measures to be in line with best practice and meet regulatory requirements. Lead the necessary actions required to meet these requirements in terms of governance, methodology, and IT infrastructure. 
·         Manage the process of addressing ad-hoc requests from senior management.
·         The role holder is a specialist in economic capital and understands the business needs and uses of it.
 
Customers / Stakeholders

Builds networks and relationships across regions and with stakeholders
Actively manages the relationships with a large numbers of parties to generate, communicate and use economic capital results. The role requires being comfortable with top-down and bottom-up communication (WMR to sites and WMR to Senior Management). This requires taking initiatives to establish strong relationships with various teams across business types and geographies.
Due to the diversity of areas that are stakeholders, the role holder needs to demonstrate a strong understanding of their own area, and be able to communicate at all levels from very technical to non-technical communication of key points to senior stakeholders
The stakeholders includes:
Provide key contribution to the ICAAP document which is discussed and approved by HSBC Board.
Senior risk management within WMR covering,  Global Head of WMR, Global Heads of Traded Risk and Wholesale Credit, Regional Heads of WMR and Traded Risk, Global Head of RRA.
Senior risk management within RBWM
Senior management within Risk Strategy
Global Risk SWD
PRA and other regulators
 
Leadership & Teamwork

Cascade functional strategy to team in order to gain commitment to them; supports and guide teams through uncertain times; provide clarity on performance targets.
Provide leadership and direction to the group economic capital team in order to work effectively with a complex set of governance, methodology and IT infrastructure.
Guide and support the development of team members in terms of quantitative models, market understanding and risk management / governance. 
Provide leadership and management of the change delivery team in charge of the enhancement of system and process related to economic capital.
Motivates the team through periods of change.
Empowers team to think outside the box and be innovative thinkers and supports team development.
Provide guidance and training to the regional teams in charge of economic capital calculations.
Provides support to WMR colleagues when required.
Will reach decisions under high pressured time and during uncertain conditions.
Deals with complex queries, only escalating where necessary.
Oversees a team of specialists.
 
Operational Effectiveness & Control

Drive changes of economic capital approaches, and lead the implementation of innovative solutions.
Performs leading edge work.
Actively monitor regional practises and guide delivery to ensure that they are in line with Group policies. Ensure that Group Audit reviews of systems and practises proceed smoothly and advocates and embeds best practice
·         Directs all regulatory and compliance matters and the management of operational risk 
 
Major Challenges

Technical field
Have deep expertise to understand complex portfolio risks and ensure these are accurately reflected in the calibration of the economic capital model and other related analyses (e.g. correlation / concentration risk assessment)
Have deep expertise to understand the dynamics of credit migration within the wholesale credit portfolio
Deep expertise in economic capital techniques in the field of traded credit, wholesale risk and retail
Drive the strategy to understand risk systems and their role in economic capital 
Direct the strategy to identify key business needs and translate these into clear systems requirements that can be implemented as part of the strategic solution for economic capital calculations and related analysis.
Finding simple and pragmatic solutions to complex problems, balancing the need to build models with strong theoretical foundations with the need to develop models that can be explained and tested easily.
Management
Distilling complex issues down into simple messages that can be understood easily by senior management and non-technical staff, demonstrating role model behaviour with complex queries.
Be the main point of contact for economic capital requests within WMR. The role requires forming a judgment on the relevance of external requests in order to prioritize them.
Manage, empower, support, motivate and guide teams to address simultaneously tasks on methodology, governance and IT infrastructure.  
Prioritize numerous requests at once, making decisions during uncertain times,  and influence stakeholders’ expectation appropriately.
 
Role Context
·         Group Risk is the Group’s central function responsible for high level credit approvals, policy, systems support, the interface with the Group’s main regulators, development of relevant Group strategic plans, portfolio management and regulatory compliance
·         The Wholesale and Market Risk (WMR) team, within GMO Risk, measures and monitors globally credit and market risks arising from credit approval and trading activity for large corporate, financial institution and sovereign exposures.
·         Part of the capital management, the ongoing risk monitoring and the IT infrastructure related to WMR.  Act as a central consolidation point for driving economic capital data and analysis.
·         Manage, empower, support, motivate and guide  the team that will be in charge of running the economic capital process across traded credit risk, market risk, wholesale credit risk and retail credit risk
·         Develop relationships and manage stakeholders within WMR, with regional WMR teams, other global functions and with the global businesses
 
Management of Risk
·         The WMR economic capital team will deliver a key component of the Group’s risk economic capital.  If this function is not executed properly the Bank’s may not appropriately measure the impact of portfolio correlation and concentration and which could result in the underestimation of required capital.
·         Drive the delivery of economic capital required by regulators and by risk strategy for capital planning and risk appetite setting
·         The jobholder will need to continually reassess the 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, and make decisions during uncertain times.
 
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.
·         The jobholder will implement the Group compliance policy by containing compliance risk in liaison with Global Head of Compliance, Global Compliance Officer, Area Compliance Officer or Local Compliance Officer. The term ‘compliance’ embraces all relevant financial services laws, rules and codes with which the business has to comply.
·         This will be achieved by adhering to all relevant processes/procedures and by liaising with Compliance department about new business initiatives at the earliest opportunity. Also and when applicable, by ensuring adequate resources are in place and training is provided, fostering a compliance culture and optimising relations with regulators.
 
Role Dimensions
·         Economic capital results are subject to escalation based on a global and regional basis. The Head of Portfolio Analytics is expected to lead the escalation process at group level.
·         Economic capital results are increasingly used for capital planning internally and by regulators. The Head of Economic Capital Analytics is expected drive and cascade the strategy for the production and review of results that can impact HSBC capital.
·         Economic Capital requires significant development in terms of IT infrastructure and headcount. The Head of Portfolio Analytics is expected to drive the management of the budget required for this development.
·         There will be approximately 2 direct head counts report directly to this role. However the incumbent will be expected to coordinate and manage the global economic capital team on a functional basis and utilize other teams within RRA which will not report directly into this role. This will dramatically increase the indirect head count to this role.  

Stress results and analysis can be expected to be communicated to the Senior Management and regulators across the globe. 

Desired profile

Knowledge & Experience / Qualifications
Qualifications

University degree and / or Ph.D. in a quantitative field
Experience

Deep expertise of statistics and familiarity with sophisticated tools for numerical analysis
Deep expertise of wholesale credit business and wholesale credit products
Deep expertise of economic capital modelling techniques
Dep expertise of PD, LGD and EAD modelling
Relevant working experience in a bank, rating agency, consultancy or advisory firm
Deep expertise of portfolio measurement techniques
Knowledge of stress testing
Skills

Ability to lead and coach an analytic team
Ability to manage and successfully deliver within the agreed time scale, in liaison with all relevant stakeholders: model owners, credit, business, IT, senior management and regulators.
Open personality with effective communication skills
Drive, empower, support, motivate and guide self and team members to deliver own work within timelines
Build and manage colleague and key stakeholder relationships  in an international team
Direct, and clear delivery, of presentations, trainings, workshops
 
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.