Senior Specialist, Risk Management

Islamic Development Bank
Job Overview

Business Unit:ICIEC-Islamic Corp for Ins of Inv & Export CreditDivision:Not ApplicableDepartment:Not ApplicableCountry:Saudi ArabiaLocation:Saudi Arabia – JeddahClosing date:12-Jun-2019
Risk Management Division:
ORGANIZATIONAL STRUCTURE

RMD is reporting to the Chief Executive Officer

ROLE

The Risk Management Division is under the Corporate Services and is mandated to lead and coordinate efforts to manage and report all risks detrimental to ICIEC operations, not only in insurance operations but also in liquid fund investment, and other areas such as finance and administration. RMD shall support the achievement of ICIEC objectives by addressing the full spectrum of risks and managing the possible adverse impact of those risks.

RMD is to lead the effort to update and draw down policies and guidelines for all operational areas with the support of the concerned risk areas. The risk management role of RMD shall be clearly defined in such policies and guidelines. RMD needs to exercise its responsibilities based on rules and regulations and attend the relevant committees in ICIEC and IDB Group.

RMD shall use IT tools for identification, analysis, control and regular reporting of risk to the senior management, audit committee, IDB Group Risk Management, Compliance and other relevant functions within ICIEC and IDBG.

Person:
JOB PURPOSE

The role is responsible for effectively handling the risk of insurance and fund investment operations by coordinating with key stakeholders in identifying any potential risks, categorizing the identified risk, identifying risk metrics, liaising with relevant stakeholders to develop risk mitigation strategy and analyzing the effectiveness of risk mitigation strategy.

This role is also responsible to document all operations involved in risk monitoring process and to submit all requisite reports to Manager of Risk Management as per established timelines in several areas such as Country, Credit, Operational, Market, capital risks in an Enterprise Risk platform.

The role provides strategic and all-inclusive risk management support to the manager of the Risk Management Division.

KEY RESPONSIBILITIES

Credit Risk (Underwriting) Review and Model Validation:

Credit risk inputs for all short and medium terms export credit underwriting;
Review of all incoming submissions as above before placing to TUC;
If agreed, the sub-unit also performs as secretariat for TUC;
All Credit Risk Assessment Guidelines (CRAG) model validation for submission notes whether for new requests, amendment or renewal purposes;
Working on automation of the processes for credit risk validations;
Responsible for calculating IBNR and provisions incurred for overdues of exposures;
Any related job functions assigned.
Credit Risk Monitoring and Reporting (Post policy, claims and recovery)

Ensuring compliance to the terms and conditions of the TUC approval;
Regular monitoring of exposures after policy stage and report EWS or adversity at least on monthly basis for top 20 exposures;
Quarterly monitoring report on the portfolio basis with the status and EWS on the prescribed format for ERMC;
Monitoring on Claims and recovery level and report to ERMC on monthly basis independently;
Follow up with concerned internal stakeholders for claims and recovery on regular basis and
Any related job functions assigned time to time.
Operational & Market Risk:

ORM Data collection, Monitoring & Reporting
Developing, driving implementation and maintenance of the Operational risk management framework;
Developing and distributing tools, techniques, methodologies, and common risk language;
frameworks, analysis, reports, communication and training;
Coordinating, aggregating and facilitating operational risk management activities Corporation wide;
Monitoring operational risk profile; including accumulations of risk, trends, and risks from internal and external market changes;
Escalating high priority issues to senior management and Board;
Collating, and reporting on aggregate risk profile, control effectiveness and actions to Internal risk committees and prepare an agreed report for the Division to report to BOD;
Support strategic business units/functions in the identification of operational risk and implementation of controls within the strategic business units/functions to meet all internal requirements;
Coordinate SOPs, risk register, KRIs, RCSA, and loss data collection;
Lead implement ERM principles as per the three years Plan;
Coordinate information security functions (ISMS);
Lead to implement a robust BCM;
Coordinate Whistle blowing and present for management action timely;
Defining yearly operational risk limit and appetite for the Corporation, Business and Support units respectively; and
Liaising with external parties e.g. Vendors, analyst, external auditors, etc. on the Corporations’ operational risk management practices;
Coordinate the Corporation’s physical security aspects timely;
Assist and update Manager, RMD on various matters related to Operational risk;
Assist Manager, RMD to prepare Board report related to Operational risk and
Any assignment giving the Manager superior time to time.
Country Risk Research and Rating:

Conducting extensive search on the macroeconomic and general economic situation of the country on Risk Perspectives including but not limited to the following:
Periodic review (at least once in a quarter) on the sectors and concentration of the economy and Government’s economic diversification program;
Keep eye on the past experience, current and future outlook of relations with other MDBs;
Regular and need basis review on general state of the money market;
Review of inflation policy of the countries
Conduct regular review on foreign exchange reserve situation of the government, and in the domestic market currently, way out strategy of the governments, sources of foreign exchange inflows to the country etc.;
Review the situation of the financial/banking sector and the contributing role of the banking sector including its regular health check etc.;
Regular checking of the latest AML/CFT rules and international body eg. FATF etc’s sanctions or restrictions;
Keep record of the latest PRI data on countries and rating changes.;
Checking on countries’ data on restrictions of foreign exchange transfer or breach of contracts;
Regular updating the information on regulatory changes and potential political influences on the policies that could affect the Corporation’s exposure whether its current or upcoming;
Regular liaison and updating data of PR from subscribed vendors or related sources.;
Maintain ongoing relations with Partners if any and report to the manager for any amendment or changes required for the sake of the Corporation.;
Any other related job functions required for discharging the duties and responsibilities.
With aggregating and preserving data as above that can potentially affect the Credit Rating of the country/ (ies), the position is responsible for Country rating as follows but not limited to:
In line with internal guidelines and internationally best practices, the sub-unit is responsible for maintenance, repair or develop the credit rating of Countries;
Regular updating the Rating of MCs and recommend to the Manger;
The periodic review and update on rating exercise should at least be once in a quarter. However, any adverse or urgent situation can enforce to review rating;
Providing timely and most accurate information related to the Country risk rating /PR to the review sub-unit and in needed to the stakeholders internally.;
Any other job functions required by the Division and the management as well.
PR Review (Underwriting) and Rating Validation

The position will be focal point for underwriting requirement on PRI as well as for risk certification on submission that potentially goes to TUC. It is responsible for:
PR input in the submission notes on RMD behalf and liaising with Underwriting Departments to provide that and ultimately for forwarding to TUC;
The rating used for the submission has to be validated by the unit and giving further inputs if needed;
Responsible for application of required part of Country Risk Rating as customized for the Corporation and;
Any other related job functions required by RMD and management.
Portfolio Review, Monitoring, Reporting coordination and Compliance

He/she will establish the ownership and regular exercise as well as oversight on the Corporation’s exposure and guiding the internal customers for the sectorial limit, country limit and related controls on underwriting activities:
Weekly checking on exposure concentration of age wise, exposure wise, rating wise, country wise and sector wise and report to management of any deviation of internal policies;
Monthly compliance report on the portfolio viz a viz the internal policy;
Monthly monitoring and reporting on RAS;
Monthly report to the ERMC and recommend the best for the corporation in line with internal Polices;
Recommend any amendment or addition, subtraction to the policies if needed;
Monthly review of the country rating and report to ERMC;
Quarterly review of the country rating and report to the Audit Committee;
Yearly review of the country rating and report to the Board any related job functions assigned.
Market, Liquidity Risk /ALM and capital Review, Monitoring & Reporting

Market and Liquidity:

a.Market Risk:

Assist the Manager to get the following job done and prepare report and recommendations for Top management information, ERMC, Board purpose;
Monitor Asset-Liability Management to ensure compliance with Objectives and limits and report on high risk profiles, any deviation based on approved policies and guidelines;
Regularly review the Corporation’s market risk exposures/positions against approved limits;
Review the pricing methodology and recommend;
Calculate VAR/market and Rate of Return Risk for various market risk positions/exposures and aggregate at the portfolio level;
Conduct scenario analysis, stress-testing, back-testing on various market risk exposures in including rate of return risk, analyze the results and recommend appropriate actions and report to Manager as and when required.;
Assist the Manager to undertake the development and implementation of policies, guidelines, procedures, models and systems Participate in the implementation and documentation of the latest risk management methodologies, techniques, tools and software;
Regularly test the assumptions used in market risk models/methodologies, ensure their consistent application, and report to the Supervisor/Manger.
Participate in the implementation and review of the market risk limit and structure;
Calculate the market risk capital requirements based on the adopted model/methodology in liaison with Finance and Treasury;
Produce periodic market risk, Rate of Return and ALM reports covering all positions and exposures;
Participate in the review of new products and assess their adequacy and consistency with the Corporation’s risk policies and infrastructure and
Periodic analysis of equity portfolio includes but not limited to PFHs report to Supervisor/Manager as and when required.
b.Liquidity Risk:

Monitor the liquidity position of the Corporation, assess compliance with the approved policy and undertake regular stress tests;
Review future liquidity needs, identify potential risks and recommend mitigating measures including revisions to policies and guidelines;
Produce regular reports on the liquidity risk profile and performance of the underlying portfolios.
c.Treasury Risk:

Report on the Corporation’s investment assets and liability management activities;
Ensure the timely production of reports monitoring investment and liability activities;
Perform stressed VAR calculation, performance attribution, and effectiveness/confidence level for investment portfolio;
Reconcile the valuation of portfolio with market data;
Keep abreast of developments in IFRS and their impacts on reporting activities in the financial statements;
Ensure the proper maintenance of the key treasury systems used to monitor investment and liability management activities;
Monitor the day-to-day use of the Treasury pricing and risk analysis and monitoring systems and the integrity of market and trade data in liaison with Finance &Treasury department;
Maintain systems and participate in migrations to new versions to improve the accuracy of security valuations and risk reporting;
Participate in the analysis and calibration of trades in Treasury systems during audit reviews;
Ensure an efficient control framework for treasury investment and insurance activities;
Monitor and report on the compliance with guidelines for investment and insurance transactions.
d.Capital Management:

Risk Capital Modeling and planning, risk-based strategy for capital requirement.
Calculation of Capital requirement as per internal need and appetite.
Using buffer and stress test scenario on Capital planning.
ERM & Risk Intelligence

Responsible for ERM infrastructure and follow up for data collection;
Leading to formulate changes, amendment and bringing new internally best practices e.g. Solvency II, IFSB or any other Industry best practices for ECAs and other MDBs dealing with credit and political risk insurances;
Producing SOPs, Risk Dash Board, blowing Strategic Risk concerns on decision-making that can adversely affect the Corporation etc.
Responsible to attend external Rating agency and providing related information for the purpose;
Responsible for stress testing, ORSA and related technical and actuarial assurance functions;
Responsible for profiling Risk according to the Corporation’s strategic objectives etc.;
Any Risk disclosure functions and reporting to the management.
Experience:
Nature of Experience

At least 5 years’ experience in Risk Management, Risk analytics, ERM related job
Proven track records and experience in managing enterprise risk management, preferably within Export Credit/Banking industry
Mastery in the Risk Management software and applications, Capital Allocation Models as well as IFSB and Basel regulations would be a definite advantage
Qualifications:
Academic Qualifications and Relevant Experience

Qualification Level

High School Diploma

Bachelor’s Degree

Master’s Degree

Doctorate

Experience

12 years

9 years

7

Professional Certifications (as applicable)

Certification in International Certificate in Risk Management (ICRM), Risk Management Assurance (CRMA), Financial Risk Manager (FRM) or Professional Risk Manager (PRM) is preferred
Business Language Skills

Good command of written and spoken English essential, additional languages (Arabic, French) are an added advantage
Other Information:
Key Performance Indicators

Implementation of risk policies and procedures as per plan
Timely resolution of risk queries by departments
Quality and Accuracy Reports Prepared
Timely submission of risk reports

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