Lead - Credit Risk - Job Description

REPORTS TO: National Manager - Credit Risk

1. ROLE PURPOSE & OBJECTIVE

- To develop a Risk Management Framework for assessing, identifying, monitoring and reducing pertinent business and credit risks in the Microfinance and Rural Banking products.

- Design and monitor compliance to internal Risk Appetite statements for MBRB.

- Report findings on portfolio delinquency, collection trends, concentration risks, Loan Utilization Checks, ring-leader and ghost lending instances etc. to top management/Board and Board Committees.

- Continuous benchmarking of bank portfolio with industry position and implementation of an Early Warning Trigger mechanism.

2. SIZE OF THE ROLE

FINANCIAL SIZE: CAPEX / OPEX Budgets resting with the role - ~Rs. 1 crore

NON-FINANCIAL SIZE: Total Revenue - N/A, Portfolio Managed - ~Rs. 10,000 crores (MBRB gross advances), Number of vendors / consultants - ~3 to 4 external consultants, Number of portfolio products - 1 credit verticals and 2 business verticals, Volume of products and services - ~Rs. 10,000 crores (MBRB gross advances), Quantity of equipment / stocks / projects / etc. - ~2-3 projects, Credit files received / underwritten - N/A, Volume of new hires onboarded - N/A, Volume of recruitment etc. - ~4-5 personnel

3. KEY DUTIES & RESPONSIBILITIES OF THE ROLE

Business/ Financials

- Develop a Risk Management Framework for assessing, identifying, monitoring and reducing pertinent business and credit risks in the Microfinance and Rural Banking products.

- Design and monitor compliance to internal Risk Appetite statements for MBRB.

- Report findings on portfolio delinquency, collection trends, concentration risks, Loan Utilization Checks, ring-leader and ghost lending instances etc. to top management/Board and Board Committees.

- Continuous benchmarking of bank portfolio with industry position.

- Design Early Warning Signals (EWS) framework and publish early signals of stress on regular basis.

- Credit Risk Audit feedback to be addressed appropriately and timely.

- Coordinate with business, credit, compliance and audit to formulate the risk management framework.

- Provide inputs for Pillar III and ICAAP reports from Micro Banking perspective.

Customer

- Coordinate with business and credit to regularly monitor risk related to concentration, growth and portfolio.

- Coordinate with compliance and audit to ensure external regulations and applicable policies are reviewed and implemented effectively.

- Coordinate with IT and operations to implement new frameworks agreed by business and credit.

- Drive communication of all risk related policies, guidelines, latest developments across the bank to facilitate compliance to it.

Internal Process

- Regular review of the risk outlook and impact of portfolio quality and recommend risk mitigation measures, if warranted.

- Ensure timely and accurate delivery of Credit Risk reports. Interpret the information and suggest actions for consideration by Senior Management.

- Participate in scheduled meetings of Risk Management Committee (for credit risk only).

- Proactively work on the monthly or quarterly regulatory reporting on risk related aspects.

- Ensure the committee recommendations are documented and implemented effectively.

- Review the risk policy documents are regularly amended suitably and obtain necessary approvals.

- Provide inputs for collating Tranche I and II points as part of Risk Based Supervision.

Innovation & Learning

- Build a capable team who can design and monitor the risk framework.

- Maintain current knowledge of laws and regulations, keeping abreast with the most recent developments in regulations, notifications and circulars and disseminate the information regarding new regulatory developments.

- Develop, coordinate and impart a multifaceted educational and training program that focuses on the elements of risk and related compliance program, and seeks to ensure awareness creation.

- Maintain a knowledge base of strategy failures and implications, provide advice on preventive actions.

- Ensure goal-setting, midyear-review and annual appraisal process happens within specified timelines for self and team.

- Participate in industry level discussions to debate on the regulations or the best practices of risk management impacting micro banking.

- Train credit and business on the risk management framework.

- Participate in relevant business, credit, collections and audit reviews.

4. MINIMUM REQUIREMENTS OF KNOWLEDGE & SKILLS

Educational Qualifications: MBA in Finance or Risk management/ Chartered Accountant/Company Secretary/Cost and Management Accountant.

Experience: At least 8 years of experience in microfinance industry in the role of business development, credit and risk management.

Certifications: FRM/PRM certification - desirable.

Functional Skills: Understanding of the business, credit, credit risk, operational risk and other risks in the Bank. Knowledge of RBI polices/guidelines relevant to SFBs. Good understanding of Risk Management principles & thorough understanding of the evolving practices for the management of credit risk and regulatory requirements. Adept at influencing policy changes for commercial advantage or basis regulation. Strong conceptual thinking ability to design complex mathematical models for explaining and predicting business metrics. Ability to apply mathematics to analyze complex data and develop conclusions and recommendations. Efficient and effective management of the data, reporting and analytical systems. Exposure to credit risk modelling is desirable.

Behavioral Skills: Interpersonal communications, Stakeholder management, Project management skills, Problem solving & critical think, Planning & organizing, Critical analytical skills.

5. KEY INTERACTIONS

INTERNAL: National Credit Manager - MBRB, National Manager - Products/Sales, National Manager - FP&A, Deputy Compliance Officers, National Manager - Internal Audit, Manager/s - portfolio and analytics (MBRB).

EXTERNAL: RBI officials during AFI visits, External consultants.