Credit Risk Assessment and Management:
- Develop and implement credit risk assessment frameworks and methodologies.
- Evaluate and monitor the creditworthiness of new and existing clients.
- Perform financial analysis, including reviewing financial statements, credit reports, and market conditions.
- Analyze credit risk data and trends to forecast potential risks and opportunities.
- Use credit scoring models and other tools to assess risk levels and make recommendations for credit limits.
Policy Development:
- Formulate and maintain credit risk policies and procedures to ensure compliance with regulatory requirements and best practices.
- Update policies as needed based on changes in the market, regulatory environment, and organizational strategy.
Credit Portfolio Management:
- Monitor and manage the organization's credit portfolio, including analyzing credit exposure and risk concentrations.
- Implement strategies to mitigate credit risk, such as setting credit limits and collateral requirements.
- Analyze and report on the performance of credit portfolios, including delinquency, default rates, risk trends, and emerging risks.
Reporting and Analysis:
- Prepare and present regular reports on credit risk exposure, portfolio performance, and risk mitigation strategies to senior management and stakeholders.
- Conduct ad-hoc analyses and stress testing to assess the impact of various scenarios on credit risk.
Risk Mitigation Strategies:
- Develop and implement strategies to manage and reduce credit risk, including enhancing credit scoring models and risk assessment tools.
- Review and recommend improvements to existing credit risk management processes.
Model Development & Validation:
- Develop and validate credit risk models (e.g., probability of default, loss given default) to predict and quantify the likelihood of credit losses.
- Develop and maintain tools such as Risk-Adjusted Return on Capital (RAROC) and other pricing tools depending on the credit.
- Challenge and review CECL model and assumptions.
- Maintain and enhance the Risk Management Dashboard – KRIs and KPIs.
- Utilize statistical and data analysis tools to enhance credit risk forecasting.
Collaboration and Communication:
- Support the Chief Risk Officer on credit and financial risk activities across the second line of defense.
- Work closely with other departments, such as underwriting, finance, and sales, to ensure alignment on credit risk management practices.
- Provide guidance and training to staff on credit risk policies and procedures.
Compliance and Regulatory Oversight:
- Ensure that credit risk practices comply with relevant regulations and industry standards.
- Prepare for and facilitate internal and external audits related to credit risk.