Credit Risk
2 months ago
Job Location: Mumbai
Company: A leading Global investment Bank
About the team:
The team operates as a credit risk control function within the Risk Management Division, reporting to the CRO. The process for managing credit risk includes:
- Evaluation of likelihood that a counterparty defaults on its payments and obligations;
- Assignment of internal ratings to all active counterparties;
- Approval of extensions of credit and establishment of credit limits;
- Measurement, monitoring and management of current and potential future credit exposures;
- Setting credit terms in legal documentation, including margin terms; and
- Use of appropriate credit risk mitigants, including netting, collateral and hedging
Role & Responsibilities:
The Financial Institutions team covers a global portfolio of Financial Institutions. As a member of the team, you will:
- Be responsible for independently reviewing and monitoring counterparties within the allocated Financial Institutions portfolio, which will primarily include Insurers. The portfolio also includes Banks, Brokers, and other Financial Institutions to a lesser extent. Specifically, you will -
- Write credit reviews recommending credit ratings for insurance counterparties trading with client. This includes an evaluation of a counterparty’s business model, its credit profile, macro-economic and sector trends, financial analysis, performance vs its peers etc.
- Perform in-depth sector and peer reviews, highlighting key trends, growing risks, and possible risk mitigation to be undertaken by the firm.
- Participate in due diligence calls and create due diligence notes.
- Monitor the performance of counterparties and also closely track developments related to the counterparty, industry, economy, regulations, markets etc., which could adversely impact the credit profile of the counterparty.
- Preparation and presenting detailed notes with the view/outlook and appropriate risk management action to senior management.
- Assist regional analysts in setting and negotiating credit terms to be included in legal agreements with the counterparty.
- Present at various forums on critical developments.
- Determining trading capacity by assigning risk appetite to counterparties
- Set or rationalize credit limits in conjunction with business activity with the counterparty.
- Investigate limit excesses by liaising with Front Office, Operations and Exposure Analytics team, to determine the cause and escalate genuine breaches as per Credit Policies
- Analyze stressed exposure under various scenarios and provide commentary on the same.
- Participate in ad hoc projects related to rating methodology, portfolio monitoring, regulatory requirements etc.
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