Risk Manager
The roles and responsibilities of Risk Manager is as under:
Credit Risk:
1) Vetting of Credit Rating
2) Preparing Risk Assessment Sheet for all the credit proposals
3) Periodic review of Credit Rating
4) In case credit rating is carried out based on Provisional Financials of the Borrower at the time of sanction / review, the credit department will carry out credit rating immediately upon submission of audited financial statements by the borrower and get the vetting of credit rating done from Risk Management Department..
5) Rating Migration Analysis: Tracking the migration (upward or downward) of borrower’s credit rating from one rating scale to another on quarterly basis (for international branches)
6) Stress Testing: Carrying out stress testing on individual borrowal accounts considering different external environment undergo rapid changes.
7) Monitoring of exposure limits for borrowers on High Risk Countries: This shall be done on monthly basis and monthly note to be put up before C.E. of the Centre.
8) Member of Credit Monitoring Committee: The Risk Manager shall be member of Credit Monitoring Committee and shall take part in deliberations.
9) Holding Risk Management Committee Meeting: The Risk Manager shall be convenor of the committee and meeting shall be held on monthly basis. The committee shall review the exposure limits to High Risk Countries, Bank-wise exposure limits etc. Monthly reports are to be sent to HO, Risk Management Department and also to International Division.
10) Risk manager is a convener of CORM committee and meeting shall be held on monthly basis. In this meeting detail discussion to be held with all the departments regarding operational risk of the branch and inputs to be incorporated in the minutes.
11) Portfolio analysis credit rating wise and Industry wise on quarterly basis
12) Grading of entire credit portfolio as per MAS 612 quarterly.
13) Carrying out Annual Review of Risk Management policy, Stress Testing and Contingency funding planning policy of the Branch keeping in view local regulatory guidelines and also HO / RBI guidelines.
14) Policy on mapping of internal grading of accounts with MAS 612 on yearly basis.
15) Vetting of Credit Policy / Credit Administration Policy prepared by Credit Department / Credit Administration Department respectively at the time of review of such policies.
16) Issuing Advisories / Guidelines for knowledge and information of Branch Officials / Staff as and when required
Operational Risk:
1) Monitoring of Operational Risk in the branch using the Risk Monitoring Template
2) Tracking of branch level Key Risk Indicators (KRIs) on quarterly basis and submitting to H.O.
3) Reporting of loss events through SAS-EGRC (software for reporting loss events) when rolled out to the foreign branches.
4) Assist in conducting Risk and Control Self-Assessment (RCSA) exercise at branches on annual basis.
Market Risk:
1) Monitoring of Daylight limit, Overnight limit, Aggregate gap limit, VaR limit, Stop Loss Limit on monthly basis based on statements/ reports submitted by Dealing Room.
2) Monitoring of mismatch of cash flows, unhedged positions on monthly basis based on statements/ reports submitted by Dealing Room.
3) Member of Asset Liability Management (ALM) Committee: The Risk Manager shall be member of ALM Committee of Branch/Centre and shall take part in deliberations.
4) Ensure preparation of Interest Rate Sensitivity Statement under Traditional Gap Analysis and Duration Gap Analysis at the Centre level.
Liquidity Risk:
1) Risk Managers should follow the RBI guidelines on “Liquidity Risk Management by Banks”.
2) Liquidity Stress test on quarterly basis.
3) Ensure preparation of the following Statements on a daily/ monthly/ quarterly basis as per the Regulatory norms and scrutiny of the same.
· Liquidity Risk Statement: Currency wise maturity mismatch statement.
· Structural Liquidity Statement.
· Short Term Dynamic Liquidity Statement.
· Calculation of various liquidity risk ratios.
Other Risk Management Functions:
1) Reporting of country risk exposure on a quarterly basis to H.O. RMD.
2) Reporting of bank exposure on a quarterly basis to H.O.
3) Monitoring of “Top 10 group borrowers” and “Top 20 single borrowers” of the branch on monthly basis.
4) Conducting risk assessment of fraud prone areas of branch and issuing risk alerts for operational staff.
5) Legal Risks: Tracking the losses arising from failure to perform duties owed to customers due to negligence and inappropriate business market practices (including fines imposed as regulatory measure or in relation to dispute settlement, penalties for breach of contract and damages) and reporting the same to HO-RMD.
6) Tracking the losses arising from complaints / unfair treatment (issues related to pay, allowances dismissal etc.), discriminatory practices (sexual harassment and the like).
7) Reputational Risks: Tracking the losses arising from deterioration in the institution’s reputation and circulation of unfounded rumors in each media category (e.g. internet, speculative news reports, etc.).
8) Ensuring that all instructions given by Risk Management Department, Head Office are being implemented.
Regulatory return checking:-
- All regulatory return submitted to local regulator to be checked by risk manager before submission.
- Various Logs generated by EDP to be checked by Risk Manager
- Work as a security officer (RSO) in Swift
- CDD of High risk, medium risk and Low risk customer on regular intervals for different accounts allotted to me.
Further, Manager- Risk shall be responsible for establishing and implementing the risk management framework to identify, monitor, and manage the risks of the financial institution
The key performance indicators shall be fixed based on the job description.
