Established in 1964, the African Development Bank (AfDB) is the premier pan-African development institution, promoting economic growth and social progress across the continent. There are 80 member states, including 54 in Africa (Regional The African Development Bank (AfDB) is the premier multilateral development finance institution fostering economic growth and social progress in Africa. The AfDB’s primary goal is to reduce poverty and improve living standards by mobilizing resources in and outside Africa, and providing financial and technical assistance for development projects and programs in Africa.
Job Title: Principal Risk Management Officer
THE PRIVATE SECTOR CREDIT ENHANCEMENT FACILITY (PSF):
The PSF is a captive credit risk participation facility that participates in the credit risks of the AfDB’s Non Sovereign Operations (NSOs) in countries eligible to borrow from the African Development Fund (ADF) – namely low income countries. Given its current capital base, the PSF’s target portfolio size stands at UA 1.1 billion of credit exposures.
Given the specific nature of the PSF as a risk participant in the Bank’s NSO, the ADF Board of Directors exercises oversight over the Facility and approves risk participations by the Facility in each NSO in compliance with the PSF Framework and Guidelines. The PSF Administrator (PSFA) is responsible for the day-to-day management of the PSF and for mobilizing additional resources to increase the Facility’s risk bearing capacity.
The PSF is financially and operationally autonomous with a total separation of resources from those of the ADB and the ADF. It sources certain middle and back office functions from the ADB. The PSFA works closely with relevant departments to ensure these functions are performed in a timely manner and in line with applicable standards and ensure that it meets all performance and financial planning, reporting and audit requirements. The PSF requires in-house risk management capacity to ensure it maintains adequate second line management functions distinct from those of the Bank.
Under the Supervision of the PSF Administrator, the objective of Risk Management Officer (RMO) is to ensure all round risk management in the Facility’s management- with emphasis on the PSF’s core-business of credit risk taking, treasury management and asset and liability management functions. The RMO ensures the integrity of financial risk models and the reasonableness of assumptions used in each risk participation, analyses the portfolio on the evolution of the risk profile and the PSF’s risk bearing capacity and ensures that the Facility’s capital adequacy, risk profile, treasury risk, as well as Asset and Liability Management functions are performed on time and effectively. The jobholder ensures compliance with the PSF risk management requirements, optimizes the sizing of individual risk participations recommended with regard to various portfolio quality and performance parameters, and formulates, review and update policies, guidelines and procedures relating to the PSF’s risk management and capital adequacy.
The job entails a high-level professional knowledge and understanding of financial risk (credit and asset and liability management) related to non-sovereign operations.
Duties and responsibilities
The key duties and responsibilities of Risk Management Officer are to:
- Process and analyze data and perform other related duties in support of credit risk measurement, assessment, monitoring and management for the Private Sector Facility.
- Monitor credit risks of the PSF portfolio analyzing the evolution of the risk profile and country, sector and obligor concentrations, the adequacy of provisions and risk capital required to support the non-sovereign credit exposure.
- Prepare at a glance reports and tables of exposure indicators;
- Maintain and update the PSF’s stand-alone models.
- Monitor and review PSF treasury and liquidity position, for committed and uncommitted capital.
- Prepare financial projections for PSF.
- Undertake data processing and computational work required in support of quarterly and annual PSF risk reviews.
- Coordinate with the Risk organizational units to collect all the necessary risk information.
- Coordinate with the Treasury Department as regards management of the PSF treasury.
- Coordinate with the Financial Control Department as regards production of financial statements and billing.
- Coordinate the preparation of relevant ALM and risk reports and decision-making documents.
- Contribute to the preparation and review of PSF guidelines in respect of risk, treasury management, and Asset and Liability Management aspects.
- Take a leadership role in the preparation of the rating of the Facility.
- Contribute to fundraising activities.
Participate in the production of PSF reports on as needed basis
- At least a Master’s degree or equivalent in Risk Management, International Banking or Actuarial Science.
- Additional qualifications like Chartered Financial Analyst, Certified Risk Management (or other relevant risk management and financial analyst qualifications), desirable
- At least six (6) years of relevant experience related to non-sovereign credit risk assessment and portfolio management;
- Hands-on experience of Non-Sovereign risk assessment in emerging and frontier markets;
- Outstanding ability and experience in financial modelling and quantitative analysis is required in order to solve statistical analysis issues of portfolio and treasury;
- Quantitative modelling skills to assess the balance sheet impact of transactions
- Strong knowledge of rating agencies’ models as well as capital adequacy requirements;
- Excellent communication skills, integrity, professional maturity and business judgment.
- Knowledge of Asset and Liability Management techniques and standards.
- Knowledge of capital adequacy standards is required as well as strong quantitative and analytical skills;
- Plans for unanticipated risks and future issues by developing contingencies and programs to address issues that may impact achievement of quality results;
- Good knowledge of credit risk management techniques and risk mitigation products;
- Capable to proactively propose changes and revisions to the credit risk management policies and other risk management guidelines to ensure that the PSF maintains a sound risk control and management framework. He/she provides technical leadership in ensuring that portfolio construction and management is compliant with key risk metrics and prudential parameters, and coordinates effectively with treasury as well as risk departments to ensure the PSF’s treasury management and ALM functions are appropriately performed;
- Provide well rounded risk management technical knowhow for the range of financial and credit risk management tasks and functions insourced within the PSF, and outsourced to Bank department and/or external agent
- High level professional knowledge of qualitative and quantitative credit portfolio management techniques and structured credit instruments;
- Experience with banking and credit insurance in the Africa region or other emerging/frontier markets;
- Proven professional report writing ability.
- A proven track record of holding positions which required responsibility for risk-related decision making; desirable
- Experience in risk management function in a Development Finance Institution that uses risk participation or credit guarantee instruments and/or credit insurance function will be an added advantage; desirable
- Comprehensive knowledge in overall risk management in financial institutions with exposures to the different facets of risks; desirable
- Ability to communicate effectively (written and oral) in English or French with a good working knowledge of the other language.
- Proficient in the use of standard MS Office software applications, particularly Word, PowerPoint, and Excel as well as SAP. Knowledge of SAP would be an advantage