Responsible to perform the functions pertaining to development and oversight of risk strategy, policy, framework, methodology and MIS,. for ensuring compliance with the applicable risk management local regulations or other generally accepted risk management practices within the banking industry.
The role of the Chief Risk Officer shall be both as a strategic advisor to the business units providing input and feedback on risk issues and on the best ways to identify and manage these issues as well as a risk controller setting parameters for risk activities and reviewing compliance with these parameters.
A. Key Responsibilities
§ Assisting in finalisation of the Bank’s strategy and annual business/ operating plans and developing Risk Management’s strategies and annual risk management plan
§ Reviewing/ finalising the overall risk management policy and the framework (comprising of policies, procedures, credit standards, methodologies, tools,risk appetite and MIS etc.), for management of various specific risk types and monitoring implementation of the same
§ Maintaining Risk Register for core banking Project
§ Portolio monitoring in terms of risk appetite set by RMD
§ Reviewing/ monitoring watchlist and slow moving accounts.
§ Managing development and implementation of Social & Environment (S&M) Policy and procedures complying with reporting requirements of stakeholders / shareholders
B. Detailed Business/Operating Results related Responsibilities
B-1. Strategic Functions
a. Developing and maintaining the risk management strategies, coordinating in the process of finalising risk appetite, monitoring compliance with the approved strategies and appetite and reporting status of compliance and exceptions to the relevant authorities
Prepare strategy, annual business plan and risk appetite before the start of year.
Monitor compliance with the strategy and appetite and advise corrective actions in case of deviation/ non-compliance.
Apprise Board Risk Management Committee of the status of risk profile of the bank and corrective actions undertaken.
b. Reviewing/ proposing the Risk Management Function organisation and any enhancements/ modifications therein in line with the applicable regulations, generally accepted risk management practices and considering the adequacy/ effectiveness of structure to perform the responsibilities assigned
Striving for minimum exceptions/ observations by the regulator and internal/ external auditors on structure and roles/ responsibilities of the function.
B-2. Policies/ Procedures/ Frameworks/ Methodologies/ Product Programme development/ review related Functions
a. Reviewing/ finalising the overall risk management policy and the framework (comprising of policies, procedures, methodologies, tools and MIS etc.), for management of various specific risk types e.g., credit, market, liquidity, operational risks etc. in various products and operations of the bank and monitoring the progress of implementation
Monitor compliance with the policy, frameworks, procedures, methodologies, tools and MIS etc. and advise corrective actions where exceptions are identified.
Apprise Board Risk Management Committee of the status of compliance and corrective actions undertaken.
b. Developing and maintaining an Internal Risk Rating Framework supported by the related risk measurement methodologies in accordance with the requirements of applicable regulations and the Basel II Framework/ best practices/ relevant risk management regulations and monitoring the use of such framework by the business units and users within Risk Management Function
Development/ updation of rating framework and related methodologies before the start of each year.
c. Reviewing product policy manuals/ product programmes and ensuring that such manuals/ programmes are in accordance with the risk management policies and appropriately address all the key risks embedded in the related processes/ products.
d. Minimum credit, market, operational losses arising from the products.
B-3. Credit Standards Setting and Approvals related Functions
a. Reviewing/ finalising standards, MIS/ system support for credit assessment, approval (including credit approval grids and authorities for exceptions), credit risk mitigation, rating, monitoring and reporting.
b. Monitor compliance with the said standards and advise corrective actions in case of exceptions.
B-4. Basel II Framework/ best practices/ relevant risk management regulations related Functions
a. Monitoring Capital Risk and suggesting strategies for capital generation keeping in view regulatory requirements and business growth
Monitor compliance with regulatory requirements.
b. Maintaining Risk Register for core banking Project and review of all softwares operational in bank
Ensure incorporation of all risk management requirements in the systems and completion of system implementation within the defined timelines.
c. Proposing/ arranging selection and deployment of the required risk management applications and monitoring effective implementation, with the active support and involvement of various divisions/ functions, where required
Automation of risk management functions on a progressive basis.
d. Proposing and implementing an effective MIS/ exception reporting framework for reporting of key credit, market, liquidity and operational risk aspects/ issues to the competent authorities and submitting reports to the Risk Management Committee and Board Risk Committee
Progressive reduction in losses arising from credit, market, liquidity and operational risks.
Apprise Board Risk Committee of the status of MIS relating to risk reporting.
e. Acting as the focal point in ensuring compliance with the requirements of Basel II Framework/ best practices/ relevant risk management regulations and working in close coordination with other divisions/ functions across the bank, driving the initiatives being assigned directly to the Risk Management Function (with the support from other divisions/ functions) and, where applicable, facilitating other stakeholders in the performance of initiatives assigned to them
Ensure compliance with Basel II requirements and advise corrective actions, where required.
f. Performing independent portfolio monitoring function i.e. reviewing/ monitoring compliance with portfolio management strategy, framework and MIS, portfolio management parameters, tolerable concentrations and portfolio mix, in coordination with various divisions/ functions. Also monitoring deployment of portfolio management tools and systems
Monitor compliance with portfolio management strategy, portfolio limits and advise corrective actions, where required.
g. Acting as the focal point in the bank’s stress testing processes in coordination with various stakeholders, establishing the stress testing framework, performing stress tests using reasonable scenarios and in accordance with the regulatory requirements and generally accepted practices and reporting the results to the relevant internal and external authorities
Monitor compliance with the bank’s policy and regulatory requirements relating to stress testing.
h. Establishing a designated data validation and reconciliation structure and process within the Risk Management Function to ensure better oversight over data quality and the cleansing exercise performed by the business, credit approval, operations and other divisions/ functions
Availability of clean/ valid data and information for performing risk management tasks.
i. Ensuring compliance with regulatory and statutory provisions regarding risk management. Review all internal and external audit reports and arrange to address key issues/ comments raised in these reports in coordination with various business units
Monitor compliance with regulatory requirements and significant reduction in key issues reported in internal/ external audit reports.
B-5. Default Management related Functions
a. Reviewing/ monitoring the watchlist accounts, collection and default management processes, defaults during the year, default concentration, default analysis/ reasoning, provision made against defaults, recoveries made against provision/ write-off cases, provision reversals, re-scheduling/ re-structuring, write-offs etc. and ensuring that MIS generate accurate, reliable and timely collection & default data/ information
Monitor the credit losses and provision against NPLs and advise action plans for reduction of such losses/ provisions.
B-6. Social & Environment related Functions
a. Managing development and implementation of Social & Environment (S&M) Policy complying with reporting requirements of stakeholders / shareholders. Ensuring that S&M requirements are adequately incorporated in relevant functions’ policies, and appropriate monitoring tools / reports are designed / implemented
Monitor compliance with the S&M policy and advise corrective actions in case of exceptions/ deviations.
b. Keeping the risk management function well abreast with the advancement in the risk management practices to ensure review and, whenever deemed feasible, adoption of good practices at all times
Ensure up-to-date risk management structure and roles & responsibilities.
C. External Customer Satisfaction
a. Monitoring maintenance of fraud to sales ratio to its minimum level, develop an early warning system for detecting potential losses, manage balance between Risk and Business, through effective strategies and controlled parameters at prevention and detection level
Significant reduction in fraud/ loss instances as compared to previous years.
D. Employee Management (in collaboration with Human Resource Function)
a. Enhancing & maintaining productivity of staff at highest possible level through inculcating motivation and team play
Significant achievement of goals and targets by related staff
b. Advising knowledge management programmes including training and awareness sessions for various levels of management on different risk aspects
Related staff provided with training in required areas, minimum 20 hours of training to related staff annually.
c. Ensure proper rotation and succession plans for staff
Rotation of staff and availability of suitable alternate staff as far as possible
d. Spearhead goal setting and appraisal exercise with the staff
Ensure completion of appraisal exercise before the year end.
E. Other Responsibilities
a. Performing any other responsibility as assigned by the Risk Management Committee, Board Risk Committee, President and any other competent authority from time to time
b. To serve as a member of the Steering Committee, Risk Management Committee, Asset Liability Committee and serving as a Secretary of the Board Risk Committee.
§ Preferred Qualification: ACA/ MBA or Masters equivalent degree in Finance / Commerce from a recognized institution
§ Minimum 10-12 years of experience in Risk Management / Audit / Credit/ Finance function with 5 years at senior/ policy level in a commercial bank/ DFI/ NBFI or corporate/ multinational organization
Behavioural Skills & Personal Qualities
Strong Analytical Skills
Excellent Communication Skills
Problem Solving Ability
- Strong knowledge of financial products and banking regulations
- Adept with financial risk management concepts and applications
- Excellent acumen of finance, accounting data flow & accumulation and on-off balance sheet items comprehensions
- Thorough concept of BASEL guidelines on Risk Management
- Strong analytical, leadership, interpersonal and communications skills
- Familiar with MS Office
- Proficient at developing economic scenarios and collate market intelligence