Global Head Of Wholesale Economic Response Analytics

Global Risk is a thriving and expert risk management function supporting HSBC globally with all aspects of risk management. The function actively manages a varied and dynamic range of financial and non-financial risk types.  
Global Risk Analytics (GRA) plays a vital role in the measurement and assessment of these risks for the bank.  We develop sophisticated models to provide analytical solutions and tools to quantify key risk metrics used to inform business decisions and meet regulatory and financial reporting obligations.

Economic Response models are used to evaluate the impact on the credit risk profile of our wholesale portfolio from changes in the macro-economic environment under a range of scenarios.  The outputs from these models have historically been used to determine Expected Credit Loss (ECL) for IFRS9 financial reporting, RWA and capital projections under regulatory Stress Test scenarios and Economic Capital requirements for Portfolio Management and Pillar 2 capital assessments. 

However, following the COVID-19 pandemic and the changing strategic focus of the bank, the Economic Response model landscape is being revamped to be sensitive to a broader range of inputs to improve predictive performance and for use in commercial applications. These include supporting more dynamic portfolio risk management activities such as Strategic Risk Transfer transactions and Securitisations as well as development of methodologies for setting and management of notional based metrics for CAT A limits.

This will entail innovation and thinking “outside-the-box” to explore new ideas and modelling techniques which can react to shifts in economic indicators, consumer behaviours, supply chains, market sentiments and customer business strategies.

The Economic Response Analytics will also include the ESG analytics area which includes various aspects such as Climate Risk Stress tests models to measure climate transition risks and physical risks, the ESG scores and the Nature risks models.

We are currently seeking an ambitious individual to join our GRA team as Head of Wholesale Economic Response Analytics who can lead the build out of this capability.

Role Purpose

• This role is responsible to oversight the delivery of Economic Response models for IFRS9 ECL calculations, Stress Testing, Economic Capital and ESG. The role holder will manage directly the Economic Capital and ESG analytics teams, while the IFRS9/ST models will be developed within the appropriate Portfolio Modelling teams. He/she will work closely with the businesses to develop portfolio risk management and hedging analytics capabilities to support activities such as Strategic Risk Transfer transactions.  
• The role holder will also work with the Wholesale Credit Risk function to develop tools and methodologies for setting and managing CAT A limits and risk identification and early warning algorithms. This is will be done via a dedicated methodology team and structured around regular methodology committee to ensure appropriate structure and governance around those methodology developments.
• Responsible for liaison between the Global Businesses, Finance, WCR and regional GRA teams to develop a coherent landscape for Economic Response models which aligns to the overall Wholesale Credit Risk models landscape and strategy.
• Carry out Research and Development to identify data and techniques providing sensitivity to a greater range of external factors including, but not limited to economic indicators, consumer behaviour patterns, supply chain changes and market sentiments and their impact on our customers’ business and strategy
• Develop new techniques and embed the use of new technologies to develop, test and deploy models more rapidly
• Oversight Economic Response models in a modular fashion with consistent use of data and portfolio segmentation between the different model types (IRB, IFRS9, EC, Decisioning) and also ensure the appropriate execution cycles and monitoring via an execution team
• In addition, the role holder will ensure that the governance, the methodology and the IT infrastructure are appropriate and integrated into Risk, Finance and business processes to support HSBC’s Economic Response related processes. This will involve coordination, communication and collaboration across teams within the Global Businesses, Risk, Finance, IT, Chief Data Officers and third party vendors.
• The role holder will direct, cascade and drive the strategy for Wholesale Economic Response Analytics and ensure it is being applied consistently globally within HSBC.
• The role holder will need to work efficiently to meet deadlines and develop innovative solutions.
• The role holder will be expected to represent GRA at senior forums and present methodology and results internally and externally to regulators when required.
• The role holder is expected to demonstrate a high level of technical expertise and be able to communicate effectively with stakeholders at all levels.
   

Knowledge & Experience / Qualifications

Qualifications

• M.Sc. or Ph.D. in a quantitative field.

Experience

• Expertise in quantitative analytics and use of sophisticated tools for numerical analysis and computer programming (e.g. R/Python/Matlab/SAS). Additionally, knowledge of Cloud technologies (AWS, GCP) would be ideal.
• Knowledge of credit risk and portfolio management, wholesale credit & lending business and products.
• Strong understanding of Wholesale credit risk parameter modelling and their use in capital, ECL projections and Stress Testing.
• Strong knowledge of appropriate regulations and accounting standards where applicable.
• Experience and understanding of large banking institutions and the complications inherent within such structures.
• Demonstrable experience in execution of modelling projects aligned with regulatory expectations and industry best practices.
• Outstanding relationship management and influencing skills.
• Experience of successful collaboration with non-quantitative stakeholders.
• Understanding of model risk, models governance and controls.
• Relevant professional work experience in a bank, rating agency, consultancy or advisory firm.

Skills

Ability to lead and coach analytics teams.

• Track record of managing and successfully delivering within agreed time scales, in liaison with all relevant stakeholders: model owners, credit, business, IT, senior management and regulators.
• Open personality with highly effective communication skills.
• Drive, empower, support, motivate and guide self and team members to deliver work within timelines.
• Build and manage colleague and key stakeholder relationships in an international team.
• Direct, and clear delivery of presentations, training and workshops.
• Ability to write clear and understandable documents.
• Ability to prioritise workload for self and the Wholesale Economic Response Analytics team effectively