Posted:May 16, 2019
Reports to : Chair, Risk Management Committee, with Administrative reporting to the Chief Executive Officer
Direct Reports : Risk Management Team: Senior Managers, Managers, Senior Associates, Associates
The Chief Risk Officer (CRO) is responsible to comply with the roles and responsibilities of the Corporate Governance as the Chief Officer of the 2nd line of defense. The CRO works with management and the Board of Directors (Board) to support strong and sustainable business performance through independent identification, measurement, monitoring, and reporting of all significant risks of the Bank. The CRO oversees, leads, and manages the Risk Management Department (RMD) and provides oversight and independent challenge to risks managed across the Bank.
The CRO has unfettered access to the Board, the Chief Executive Officer, and all the information, records and personnel of the Bank, and has authority to follow-up with management in response to identified issues and related recommendations.
To maintain their objectivity, the CRO and RMD staff members are not permitted to be directly involved in revenue generation or in the management and financial performance of any business or product of the Bank.
Responsibilities and Duties:
Board, Committee, and Leadership Accountability:
- Provides support to the Risk Management Committee of the Board.
- Chairs both the Loan Review Committee (meets on a quarterly basis) and the Risk Management Steering Committee (meets on a monthly basis). Effectively presents with credibility and presence, to the Bank’s Senior Management team.
- Participates actively as a member of the Asset & Liability Committee and the Information Security Committee by attending meetings, strategic planning sessions, and various other meetings thereby staying informed as to emerging risks as well as providing compliance reporting as required by regulation or policy.
- Provides quarterly risk reporting to the President/CEO and the Board’s Risk Management Committee an assessment of the Bank’s profile and alignment with its risk appetite, including:
- An independent view of the Ban’s risk profile by reporting significant risk exposures, and monitoring actual risk exposures against the approved Risk Appetite Statement and policy limits;
- Provides the governance oversight for the Risk Management Committee and is responsible for developing the periodic committee agenda, reporting tools, record keeping, action items and all related required governance to insure timely and accurate reporting and historical record of all actions.
- Ensures that a consistent risk management culture exists throughout the organization, which enables management to proactively manage risk and respond to third party inquiries, including regulatory agencies and members for the robust three lines of defense of the Bank’s practices.
- Oversees, facilitates, and serves as an advisor to the Bank’s 1st line of defenses or business risk owners as the 2nd line of defense, regarding the implementation of effective risk management practices. Consults with business risk owners in defining the target risk exposure and structuring appropriate risk management for all matters related to the business’s key products, processes, and functions; risk identification, control structure, and determination of potential financial exposure.
- Manages and leads the RMD by being involved in selecting staff, allocating responsibilities and performance expectations, supervising all activities, training and developing job knowledge and skills, mentoring for short and long term success, reviewing work, conducting performance reviews, providing feedback, recommending compensation adjustments, documenting as appropriate, communicating appropriate company and departmental information. Supports management policies and manages staff in accordance with relevant policies.
- Builds and maintains effective working relationships with other members of the management team, members of the Board, Parent bank, external auditors, OSFI, and other stakeholders.
- Partners with the 1st, 2nd and 3rd lines of defenses (compliance, finance, accounting, fraud prevention, human resources, information technology, and operations) to develop, communicate, and maintain corporate policies and programs directed at monitoring risk.
- Develops, maintains and communicates the Bank’s Risk Appetite Statement (RAS), including:
- Provision of assistance to the Board in defining and articulating the overall risk appetite;
- Establishment of limits that reflect the Bank’s risk appetite, consistent with its overall strategy, risk capacity, mission and governing objectives; and
- Communicating the Risk Appetite to employees to help promote a sound risk culture.
- Ensures compliance with the Bank Act, regulation and expectations which are applicable to the Bank including, but not limited to, the Office of the Superintendent of Financial Institutions (OSFI), Canadian Deposit Insurance Corporation (CDIC).
- Develops and maintains the Bank’s Risk Management Framework (RMF) and related risk governance structure to enable the Bank to effectively identify, assess, measure, manage, monitor and report on risk exposures, including Risk Management Framework and related policies and guidelines to assist management in developing risk taking authority across the Bank. Such framework shall be consistent with relevant regulatory requirements.
- Develops, review and update (where necessary) risk policies for endorsement by the Risk Management Committee and ultimate approval by the Board.
- Develops, maintain and approve all Bank risk management and assessment methodologies.
- Establish Bank-wide processes and coordinate related risk identification, measurement and assessment activities, including those related to emerging risks and change initiatives.
- Provides timely advice to business leaders on the interpretation and application of policies and guidelines.
- Provides oversight over the implementation of the Risk Appetite Statement and Risk Management Framework, including:
- Assesses the adequacy of integration of risk appetite considerations within the strategic financial and capital planning processes.
- Provides independent challenge as a member of management and steering committees.
- Ownership of all credit models.
- Provides objective assessments of the quality and sufficiency of business implementation of the RAS and RMF including business policies, guidelines and procedures.
- Takes a leadership role in the development, implementation, and coordination of the Bank’s risk management function that links together the Bank’s various risk assessment and control processes to determine the level of risk to earnings, capital and reputation to provide practical and actionable risk intelligence and strategic awareness.
- Stays up to date on regulations and trends that affect the banking industry, considers the potential impact on the RMF and RAS, performs risk analyses, and provides early warnings to senior management.
- Oversees audits, reviewing compliance, documenting action plans, defining risk control policies, generating management reporting tools, providing in-house user training, evaluating market trends, and creating IT risk strategy.
- Acts as a guard for protecting the Bank from penalties, securing breaches, lawsuits and investment losses.
- Oversees RMD’s performance of compliance procedures for ALM, Investments, Investment Services, and Member Credit areas to determine compliance with regulations, corporate policies, and departmental procedures.
- Oversees the credit function encompassing the performance of credit reviews and the development of credit risk measures for (non-treasury/agency) investment securities, banks, broker/dealers, counterparties and key vendors. The credit function approves dollar limits (on an initial and on-going basis) and determines which investment securities, banks, broker/dealers, and counterparties that the investment staff may invest in (or with) based upon policy guidelines.
Qualifications and Skills:
- Minimum 10 years of experience as a Risk, Credit, Market or Operational Risk Leader within the banking/financial industry of which a minimum of 5 years of experience in a risk management role.
- 4-Year Bachelor’s Degree; finance, economics, business administration, statistics, or management.
- Master of Business Administration (MBA) or Certified Public Accountant (CPA) or equivalent.
- A Financial Risk Management (FRM) designation preferred, but not required.
- Working knowledge of Canadian Banking practices, risk factors, control methodologies, review and monitoring tools.
- Strong knowledge of Canadian banking and related regulatory requirements.
- Technology Skills Required: Advanced knowledge of Microsoft Office, Word, Excel, Access, PowerPoint, and Outlook. Skills necessary to use complex auditing and statistical analysis software in monitoring risks.
- Change readiness–Positively embraces change adjusting behaviour as necessary.
- Collaboration and Teamwork – Works cooperatively and collaboratively with others internal and external to the Bank to accomplish individual and organizational objectives.
- Communication and Presentation – Conveys information effectively in a variety of settings, applying the best mode of communication for the situation. Experience presenting complex material in a clear and concise manner.
- Continuous learning and improvement – Continually participates in development opportunities to improve personal knowledge, skills, and abilities, as well as the organization’s success and efficiency.
- Creative thinking, problem solving, analytical and mathematically-inclined – Anticipates needs; thinks critically about business issues; addresses problems and issues in innovative ways, analyzes relevant data and weighs alternatives, and chooses best plan of action.
- Ownership/Accountability – Takes responsibility for decision-making and accomplishing objectives within role; demonstrates initiative to enhance value.