STA / CRM: Key Risk indicator methodology development

Short term assignment CRM: Key Risk indicator methodology development

Your Tribe

Tribe Credit Risk Management (CRM) is an enthusiastic and diverse team of 76 highly qualified professionals spread across four chapters: Credit Risk Analytics Credit Risk Management Business Banking/Private Banking & Wealth Management Credit Risk Management Private Individuals and Regional Restructuring Unit.

We are responsible for managing the credit risks in the lending portfolios of all segments in the ING NL book (EUR 170bn). We do this by developing and maintaining compliant policies taking into account both regulatory requirements changing macro economic landscape but as well as changes in the markets our customers operate it. We do this by setting credit risk appetite monitoring the portfolios using data driven analyses and having a close understanding of the developments in both regulations as well as our customers in our lending books.

We are at a decisive moment in designing the future of credit risk management for which one of the fundaments will be to further unleash the potential of data driven credit risk management including clear cascading of RAS metrics to operational level linking data driven policy setting to the RAS metrics. Use of data driven policies will improve decision making ensure risk management by design and as a result contribute to better business while keeping the bank safe and compliant. Ability to justify decisions based on underlying data is also one of the key regulatory requirements.

Short Term Assignment (STA) Description

Objective:Design a methodology framework linking Risk Appetite (RWA) to key risk portfolio KPIs for existing portfolio and vintages. The aim is to set clear thresholds for portfolio Key Risk Indicators (KRIs) and vintage thresholds ensuring a clear link to RWA risk appetite metrics.

Project Scope:This project will focus on developing a comprehensive framework that integrates risk appetite with key risk indicators across various dimensions. The scope includes:

Duration: 6 months

Methodology Framework expectations:

Understand Risk Appetite Statements:

• Establish a deep understanding of specific risk appetite statements that align with the organizations strategic objectives and regulatory requirements since these will serve as the foundation for linking risk appetite to KPIs.

Identify Key Risk Indicators (KRIs):

• Determine the critical KRIs that reflect the risk profile of the portfolio. These indicators should be measurable relevant and aligned with the risk appetite statements. Identifying the right KRIs is crucial for monitoring risk levels effectively and ensuring that they are within the acceptable limits set by the risk appetite framework.

Develop KPI Linkages:

• Create a mapping between KRIs and Risk Appetite Statements (RAS) to ensure that risk management is integrated with business performance. This linkage will help in monitoring and managing risks effectively. By aligning KRIs with Risk Appetite Statements (RAS) organizations risk considerations are embedded in performance metrics promoting a holistic approach to risk and performance management.

Set Thresholds and Limits:

• Establish clear thresholds and limits for KRIs and KPIs based on the risk appetite statements. These thresholds should be dynamic and adjustable based on real-time data and changing market conditions. Setting appropriate thresholds ensures that any deviations from the acceptable risk levels are promptly identified and addressed maintaining the overall risk profile within desired limits.

Design Monitoring framework:

• Develop requirements for dashboards to monitor KRIs and KPIs continuously. These tools should provide real-time insights and alerts for any deviations from the set thresholds. Effective monitoring tools enable proactive risk management by providing timely information and facilitating quick responses to emerging risks thereby enhancing the overall risk management process.

Set Regular Review and Adjustment requirement:

• Set requirements regular reviews of the methodology framework to ensure its effectiveness with the intent to adjust the framework as needed to address emerging risks and changes in the business environment. Continuous review and adjustment help in keeping the risk management framework relevant and effective ensuring that it evolves with the changing risk landscape and business needs.

Stakeholder Collaboration:

• Engage with key stakeholders throughout the development and implementation process to ensure alignment and buy-in.

Your profile

You have experience dealing with Business Lending segment (Netherlands or international) in 1st or 2nd line roles and therefore have a thorough understanding of

• Business Lending credit process in different stages of automation
• Business Lending sectors and product

You have at least 3 years of experience within Credit Risk function of Business Lending portfolio can include policies transactional approval portfolio analysis modelling implementation activities. You have performed analytical tasks in your previous role and therefore able to:

• Design and drive qualitative and quantitative analysis
• Conceptually understand Logical Data Model (LDM)/Entity Relationship model (ERM) of data sources relevant to Credit Risk analysis
• Perform quantitative analysis in excel on advanced level
• You have worked with Data Bases and acquainted with some of the programming languages
• You have experience with Credit Risk regulation i.e. interpretation of the regulation implementation of the regulation
• You can write and speak in English fluently (Dutch is an advantage)
• You have proven record of driving and implementing change
• You have project management experience (experience in Agile Way of Working is a plus)
• You have hunger for deep understanding and striving for impact
• You are stress resilient and able to prioritise and manage yourself effectively
• You constantly develop yourself professionally and you are passionate about Credit Risk related topics