The role reports into Head of ALM, Liquidity and Market Risk and is responsible for: The strategic management and control of Liquidity Risk. Take responsibility for the definition, development and implementation of Liquidity methodologies, measurement tools, systems, processes, and reporting across the Group; the governance of Liquidity, including policy setting and approvals. Ensure the Liquidity limits framework is comprehensive and limits are appropriately set. Ensure monitoring activities are conducted in a robust and suitably frequent manner and limit breaches are escalated on a timely basis.
Job title: Head of Liquidity Risk
Department: Strategic Risk Management – Group Risk
Location: Doha, Qatar
About Us: We are the largest Financial Services firm in the MENA region with international offices across Africa, Asia, Europe and the Middle East.
The role reports into Head of ALM, Liquidity and Market Risk and is responsible for: The strategic management and control of Liquidity Risk. Take responsibility for the definition, development and implementation of Liquidity methodologies, measurement tools, systems, processes, and reporting across the Group; the governance of Liquidity, including policy setting and approvals. Ensure the Liquidity limits framework is comprehensive and limits are appropriately set. Ensure monitoring activities are conducted in a robust and suitably frequent manner and limit breaches are escalated on a timely basis. Ensuring policies are reviewed and approved at least annually. Ensure the Bank has a robust and practically applicable Contingency Funding Plan. Conducting, interpreting and presenting Liquidity analyses to a senior audience, including Group ALCO. Clear, concise commentary will be required to explain the position, the implied risks and their implications on Bank profitability under various scenarios; conducting interpreting and presenting stress testing and market and volume scenario analyses; formulating remedial strategies to normalise excessive risks, and the presentation of these proposals to ALCO. Acting expert on regulatory standards affecting Liquidity in the key jurisdictions in which the bank has a presence. Subject matter expert on Basle III Liquidity Ratios, ILAP, FSA 047/048 reports etc; Monitoring developments in the regulatory environment, providing expert advice to management on the implications re. Bank’s balance sheet and profitability of proposed and actual regulatory changes. Driving the implementation and enhancement of ALM & Liquidity systems. Take responsibility for ensuring the configuration of the system is appropriate. Ensure reporting is delivered in a timely and robust manner and that report configuration is optimised to best serve the goals of the Risk Department and needs of other key users. Ensuring the key components affecting limits and exposures e.g. behavioural assumptions are regularly reviewed and adequately documented. Ensuring approval by the governing body is secured at least annually. Contributing to the determination of the Bank’s FTP policy, especially with regards to the Liquidity premium, ensuring that the policy incentives the various business generating departments to act in the best interests of the Bank. This activity will be undertaken in conjunction with other key stakeholders/departments, and will require strong influencing and negotiation skills, and a capability for explaining complex concepts in a clear and concise manner. The practical application of the Bank’s FTP policy, ensuring that it is applied in a consistent manner and that it generates the intended outcomes; As a senior member of the SRM team, providing leadership, motivation and guidance to direct and indirect reports and colleagues. Lead by example. Support the department head and overall function in all Group Risk Projects, & initiatives.
Duties & Responsibilities:
- Proactively manage the fundamental prudential risks of the bank: counterparty, leverage, liquidity, interest rate, currency, and other market risks.
- Advise Senior Management on the current Liquidity risk exposures of the bank and on the implications of future risk strategy, including strategy for capital and liquidity management with due consideration to the current and prospective macroeconomic and financial environment.
- Set the strategic direction for Liquidity Risk in conjunction with the Head of ALM, Liquidity and Market Risk. Drive the Group’s efforts to move to more sophisticated/ advanced methods for calculation / measurement of ALM and market risk.
- Monitor and analyze market & economic conditions and develop recommendations on adequate and timely mitigating actions / recommendations to reduce or mitigate these risks. Escalate unacceptable risks and limit breaches on a timely basis.
- Provide inputs in the preparation of the Balance Sheet Strategy (including limit setting) that reflects the Bank’s tolerance for risk. Liaise with the Head of ALM, Liquidity and Market Risk to ensure risk appetite limits are appropriately set.
- Monitor developments in the regulatory environment, and provide input, support and expert advice in the process of managing ALM and Liquidity (including ICAAP) and regulatory liquidity measures (including LCR and NSFR ratios).
- Drive the implementation of Key Performance Indicators (KPIs) and Liquidity Early Warning Indicators (EWIs) and Risk Dashboards for performance monitoring and quality measurement purposes. Monitor KPI and EWI status, and escalate exceptions on a timely basis.
- Within the context of rigorous stress testing and scenario analysis, understand and advise the circumstances under which the bank’s profitability would be negatively impacted.
- Assess independently from business line executives, and with due regard to materiality, whether a proposed product launch or the pricing of risk in particular transactions is consistent with the risk tolerance determined by the Senior Management.
- Adhere to formal and informal Service Level Agreements (SLAs) with internal departments / units to ensure all internal and external deadlines are met. Ensure the quality of output delivered, in terms of presentation and content, meets or exceeds expectations.
- Ensure Group Policies and Procedures promote international best practice. Ensure bank processes are able to support the Policy requirements Group wide.
- Build and maintain strong and effective relationships with other related departments and units to achieve the Group’s goals/ objectives, including provision of required support, as and when required.
- Ensure alignment between the Liquidity Management and Financial Planning processes.
- Enhance the relationship with the relevant Regulatory / Central Bank officials through continuous communications and follow up.
- Provide timely and accurate information to the external and internal auditors and the Compliance function as and when required.
- Provide expert advice with respect to Liquidity / ALM / portfolio risks associated with new product launches (retail, corporate, treasury for conventional and Islamic banking).
- Maintain a flexible, dynamic approach. Actively support line management in addressing ad hoc issues or initiatives outside of core remit.
- Ensure processes to monitor ALM and Liquidity limits are robust and comprehensive. Provide commentary explaining significant exposure / ratio / VaR movements and communicate analysis to the Head of ALM, Liquidity and Market Risk.
- Lead the Group wide preparation of Liquidity stress testing and scenario simulations.
- Drive the Group’s efforts to select / implement / enhance ALM & Liquidity software.
- Implement ongoing analysis of risk scenarios, measuring impact and exposure across different economic conditions.
- Obtain information about cash flow in the Group, assess on the basis of each instrument, what is real cash flow and provide data on reinvestment or refunding operations.
- Deploy state-of-the-art tools, systems and approaches to facilitate monitoring of ALM and Liquidity risk at product / portfolio level.
- Ensure that positions and risks are fully captured in the Group’s global risk management systems, are updated regularly and reconciled to other reporting systems across the Group. Take ownership and actively pursue the closure of any prevailing control / reporting weaknesses.
- Produce adequate and accurate reports pertaining to Liquidity and disseminate the same to the concerned business units/ senior management for their review / action.
- Ensure the risk profile is representative of the true risks undertaken by the business and that it is consistent with market movements and P&L.
- Ensure ALM, liquidity and market risk control framework aligns with the Group Enterprise Risk Management Framework and relevant Group policies.
- Ensure all models comply with the Group Model Validation framework and governance.
- Portfolio Management: Draw on banking knowledge, model building capabilities and technical skills to provide technical and practical support to the modelling of portfolio (credit) exposures.
- Stay aware of developments both within the organization as well as in the marketplace to ensure that the Bank may quickly adapt its risk management framework for any significant changes.
- Possess good knowledge of ALM, liquidity and market risk management best practices including but not limited to pertinent Basel pronouncements.
- Ability to build, control and calibrate complex financial models. Good appreciation of governance requirements relating to such models.
- Ability to communicate complex technical observations in a simple, clear and concise manner.
- Strong personnel management skills. Have the ability to provide leadership and motivation to direct and indirect reports. Act as a role model to others. Adhere to the very highest standards of professionalism, business etiquette and ethics at all times.
- Ensure high standards of confidentiality and ethics to safeguard commercially sensitive information.
- Has the ability to develop, plan, and implement short-and long-term goals.
- Can work independently but at the same time could be a strong team contributor.
- Masters degree preferably in finance, economics &/or quantitative subjects.
- Professional certification such as FRM, CPA, CFA.
- 10+ years of experience in international banking with specific focus on Liquidity Risk Management, Stress tests, & ALM quantitative methods. At least 4 years’ experience in a managerial capacity in an ALM related function.
- Extensive experience and knowledge of market and related credit risk elements as well as the VAR, stress testing, modelling and simulation techniques.
- Good knowledge of Basel II and Basle III requirements, with particular emphasis on liquidity and market risk related issues, and related local and international laws and regulations.
- Excellent quantitative modelling, analytical, and research skills.
- Experience working with large and complex data sets.
- In-depth knowledge of financial markets and Banking products, with a particular emphasis on Treasury products.
- In-depth understanding of market risk methodologies, VAR, and/or other complex financial risk modelling.
- Excellent oral and written communication skills in English and Arabic (preferred).
- Adequate knowledge of IT systems/ applications.
- Well-developed interpersonal skills.
- Self-motivated, eye for detail.
- Flexible team player and able to work and deliver under pressure.