Risk Appetite & Stress testing Analyst

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Job Summary

• The role consists of leading in the Stress Testing and Risk appetite exercise as per regulatory and group requirement with proactive engagement at all stakeholder’s level.
• To lead in digital and automation strategy for seamless and innovating output as part of wider Risk architecture built.
• To contribute in the improvement of Risk metrics from end-to-end process.
Mandatory Risk and Control objective: Ensure all activities and duties are carried out in full compliance with regulatory requirements, Enterprise-Wide Risk Management Framework, Internal Absa Policies and Policy Standards, Stress Testing Framework and Risk Appetite Framework. Understand and manage risks and risk events (incidents) relevant to the role.

Job Description

• Stress Testing and Capital Buffer

  •   Work alongside Centre team in the embedment of Stress Testing Framework, taking into consideration regulations, and internal and Group requirements.
  • Lead in the stress testing exercise along with appropriate engagement at all stakeholder/management level for group and regulatory requirement.
  • Ensure alignment between Risk, Finance and Treasury (and/or any relevant stakeholder) from an input and results perspective.
  • Execution of stress test projections in line with the requirements of the Stress Testing Framework.
  • Review and challenge the stress testing scenarios, models, results, and management actions and propose alternatives where need be.
  • Development of stress testing models and integration of models including developing models to be used to quantify the impact of particular scenarios and/or management actions that are relevant for the exercise.
  • Ensure the stress testing model is fit for purpose and has been tested by the users and validated.
  • Ensure the stress testing model meets the user’s requirements from a risk measurement perspective and produces stress results at the required level of granularity.
  • Ensure assumptions used within the stress testing model are documented.
  • Assist in devising scenarios which could deplete the Bank’s capital base including Reverse Stress Testing.
  • Keep abreast of emerging risks, taking into consideration the internal, local and international environments.
  • Work alongside Centre team in the embedment on setting the Capital Buffer, taking into consideration regulations, and internal and Group requirements.
  • Assist in reviewing and recommending (where appropriate) improvements to the capital buffer setting process.
  • Ensure assumptions used for the capital buffer setting process are documented.
  • Assist in coordinating capital buffer setting activities between specific areas in the Bank.
  • Ensure alignment between risk and finance (any relevant stakeholder) from a results perspective.
  • Propose and quantify the impact management actions to reduce the size of the capital buffer/remedial actions that can be taken where relevant.
  • Assist in allocating the capital buffer per risk type and per business unit including identifying main sources of risk

  ​Risk Appetite and Integrated Planning

  • Assist in developing the principal risk type risk appetite statement, in conjunction with 1st line of defense teams, guided by the framework and the Risk Appetite Statement and cascading the risk type metrics across the Bank.
  • Assist in developing the legal entity risk appetite statements, in conjunction with 1st line of defense teams, guided by the Group RAS and the principal risk appetite statement. 
  • Participate in model developments, significant change processes where new models being implemented.
  •  Collaborate with cross-functional teams to develop integrated planning plan and reporting for Risk.
  • Coordinate the execution of integrated planning across multiple channels.
  • Act as a liaison between Risk, Treasury, and any other relevant departments.
  •  Foster a culture of collaboration and knowledge sharing within the MI team for the Risk appetite and Integrated Planning.

  Improved generation of Risk Metrics through automation efficiency

  • Closely engage with the Line Manager to propose innovative and new report built. 
  • Identify new opportunities for enhancing, streamlining services through use of advance analytics, automation, and optimization.
  • Continuously identify opportunities to automate reports to eliminate duplicate and manual report production for improved efficiency.
  • Proactively propose new dashboards and other ad hoc reports that the Risk team/Business might require for automation/digitalization strategy.
  • Extract information from different sources to provide insightful management information reports to the MI team.
  • Generate improved Risk metrics with automated end to end processes

  Role/Person Specification
  Preferred Education:     

  • Minimum Bachelor’s degree in Statistics, Mathematics, Risk Management, Econometrics, Economics or Accounting 

  Preferred Experience:  

  • At least 4 years of Risk related experience.
  • Good understanding of Stress Testing, Risk Appetite, Risk. 
  • A broad knowledge gained in the Risk team of a Bank.
  • Very good understanding of inherent risks for the Bank.
  • Good understanding of current and future regulatory environment and ability to translate into requirements for risk frameworks and individual businesses.

  Knowledge & Skills:     

  • Ability to manage a relationship with staff at all levels and to agree the recommendations with senior management.•  
  • Very good understanding of macro-economics
  • Very good understanding of reputational risk and its impacts
  •  Good understanding of operational and compliance risks

Education

Higher Diplomas: Business, Commerce and Management Studies (Required)