Risk Analyst
For a number of years, BNP Paribas’s strong risk management system has protected the bank, hence its clients, from various external economic fluctuations. Analysing and managing risk is essential to guaranteeing the bank’s results while the global financial environment is increasingly complex. The Risk Management support function anticipates, measures, and monitors the risks that the Bank is taking / can take.
Close up: Market Risk Analyst:
A market risk analyst monitors the levels of market risks that operators take and their compliance with defined limits. He/she helps management to define operators’ optimum risk limits. He/she oversees the use of management-defined credit lines and limits.
Missions:
The market-risk analyst evaluates the risks that the Group’s activities entail on financial markets. He/she:
• Proposes and develops the standards that are used when measuring risks (including counter-party risks resulting from market operations);
• Defines operators’ risk limits;
• Monitors the risk levels the operators take by assessing the risks compliance with established thresholds by analysing positions and determining the results they entail;
• Creates an atmosphere of trust and support that will allow operators to work in a safe environment;
• Reports on trading-room risks and results (in collaboration with the back and middle offices);
• Provides management with real-time information on any significant change in risks and results;
• Brings any irregular situation or position to the attention of the appropriate hierarchical level.
• Diploma: Graduate Degree
• Experience: various
• Skills: strong derivatives and sensitivities of derivatives (Greeks) understanding, product pricing (Black and Scholes), IT (VBA), English
• Behavioural skills: organisation so as to handle significant amount of data, autonomy, resistance to stress, good team spirit.
An experience as a risk analyst is the opportunity to become familiar with risk culture and to develop an expertise on technical risk issues, which is core to the banking sector. One can experience the risk management business in a diversified, transversal and international environment. It also means working closely with the business lines and being involved in the risk process approval. The experience is rewarding, either to start a career, or to be a springboard for a career within the Group or finally to acquire a lasting experience in the risk management.
An experience as a risk analyst can lead towards professional positions or management positions throughout the bank; a risk analyst is in contact with all of our business lines.
The three words that best describe risk management are diversity, rigour and transversal.
Risks measurement and analysis with a risk type, business type and geographical approach (Credit Corporate, Banking and Financial Counterparts, Market Risk, Operational Risk)
Macro and micro analysis of the Group Credit Portfolio
Project management: transversal banking projects and group projects with a strategic stake
Control and reporting: a consolidated and international approach
Credit risk methodology: development of risk measurement and analysis tools as well as credit and rating policies
The Group Risk Management support function (GRM) reports to the Executive committee and has no hierarchical connection with the Managers of the various BNP Paribas businesses. GRM is a Global Function. The targets of such a position are:
• Guarantee the objectivity of a second level control, not involved in the commercial logic
• Provide a faster, more complete and more anticipated alert on the possible degradation of the risks
• Allow for homogeneous broadcasting and practice in the bank of the qualitative standards defined through the procedures
• Improve the quality of risk monitoring methods and procedures, and assess and develop them regarding the best practices of the international competition.
The recognition of the necessity to create a global Risk Function was acquired several years ago. This function is better aware of the constraints on the commercial or market teams. It allows for a dialogue between those who propose the risk and those who are called to approve it.
Executive Management alone is responsible for defining the degree of risk acceptance of the Bank.
Responsibility for risks remains first and foremost in the hands of Core Businesses and Business Lines which propose them. Accordingly, they need to set up an organisation which clearly establishes everyone’s responsibilities in line with the Bank’s internal control principles; they need to develop the understanding of risks among their staff and they must, at all times, remain abreast of changes at the Bank’s exposures and counterpart financial situations.
The Group Risk Management Function, known as GRM, guarantees vis-à-vis Executive Management that risks taken on by the Bank align with its policies and are compatible with its profitability and credit-rating objectives. GRM advises Executive Management on the soundness, long run profitability, and more generally on the consistency of the business development plan with the bank’s risk appetite.
GRM exercises a continuous, a priori second-level control on credit and market risk taking (concurrence on credit and trading limits; monitoring and control of operations).
The mission of GRM is to inform Executive Management and the Board of Directors’ Internal Control and Risk Committee of the status of risks to which the Bank is exposed. It compiles regulatory statements and financial reporting regarding management and risk measurement, and more generally, appropriate analyses and overall reporting.
GRM develops assessment methods and sets up the information systems required to perform its missions.
GRM is in charge of the relationship between the banking authorities and the external auditors and is the regulatory watchdog for all subjects related to risk measurement and monitoring. It informs the Regulator Relationship Desk of the Compliance Function in accordance with rules currently in effect.
Chief operating officer - COO
The Chief Operating Officer is responsible for the support functions of GRM, especially the teams responsible for the design of the credit risk systems. He/she is in charge of cross department projects, such as the reliability of reporting regarding credit risk; more generally, he/she ensures the optimisation of the organisation of GRM.
Credit risk France - CRF
Credit Risk France monitors French Retail Banking credit risks at both the regional and central level.
Credit risk international - CRI
Credit Risk International is responsible for credit and counter-party risks on corporate clients of Corporate and Investment Banking and International Retail Banking & Services.
Group risk portfolio - GRP
Group Risk Portfolio ensures the analysis and synthesis functions which focus on credit risk and Industry expertise. It is therefore responsible for originating credit and rating policies and more generally for defining methodologies for measurements; it is also required to develop the tools and analyses which will enable forecasting of unfavourable changes in the credit environment and their impact on the portfolio. Finally, it is responsible for the consolidated risk reporting and, to this end, for the drafting of coherent aggregation rules for all risks; in this regard, it is in charge of the Group’s regulatory and economic capital reporting.
Risk - Capital Market (R-CM)
The mission of the Risk - Capital Markets department (“R-CM”) derives from the Group Risk Management department (“GRM”) charter as well as from the Bank risk definitions and classification.
The mission of R-CM is to provide full transparency and dynamic analysis of market and liquidity risks, counter-party risks and credit risks on Financial Institutions and Sovereigns to Business lines, GRM and Senior Management. R-CM contributes to the definition of the Bank’s risk appetite, its risk decision making process and the optimisation of capital allocation.
Operational risk - OR
Operational Risk is responsible for defining infrastructure for the management and measurement of operational risks, and participating in its deployment across the Bank, to ensure the constant minimisation of this type of risk and its associated potential losses. In order to perform this duty, the department obtains support from a network of operational risk analysts set up by the Core Businesses, over which it exercises a supervisory function. Finally, it ensures the reporting to Senior Management of the Bank’s operational risk profile.
Credit and Counterpart risks
These are the risks linked to the changes of solvency or to a lack of borrower, whether these result in a particular evolution or from events affecting the country of the counterpart.
Market and liquidity risks
They are the risks linked to the variations in rate, exchange or price and to the illiquidity of the assets / problems of refinancing.
Operational risks
Risk of loss resulting from any inadequate or failed internal processes or from external events, whether deliberate, accidental or natural.
Risks of business
These are the risks related, in the situation of a fall of the volumes and\or the margins level, to the rigidity of the fixed costs.
Insurance Risks
Theses are the specific risks linked to the unexpected variations of accidents.
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Corporate & Investment Banking - Retail Banking - Private Banking & Investment Solutions.
