Head - Risk Management (Balance Sheet & Climate Change Risk)

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Overview

The Head of Balance Sheet Risk aligns the Bank's balance sheet risk management with overall risk strategy and appetite. Leading the identification and monitoring of risks ensures compliance with internal limits and strategic goals. Core focus areas include enhancing reporting, overseeing regulatory compliance, and developing a robust ICAAP stress test program. Proactively managing balance sheet risks and fostering strong stakeholder collaboration contributes significantly to the Bank's resilience and strategic positioning.

Functional (job responsibilities):

This function is integral to ensure the monitoring and management of the Bank’s balance sheet risk covering liquidity risk, IRRBB, ICAAP, and Climate Risk. The responsibilities include:

1. Liquidity Risk Management

• Formulate, maintain, and continuously enhance policies, frameworks, and SOPs for Liquidity Risk in alignment with the Bank’s Risk Appetite Statement (RAS) and regulatory guidelines.

• Oversee the identification, measurement, and active monitoring of the Bank’s liquidity profile, structural funding positions, and interest rate exposure against internal limits and regulatory benchmarks.

• Collaborate closely with relevant internal stakeholders to align liquidity and balance sheet risk strategies with business objectives.

• Design and execute robust liquidity stress-testing programs. Lead Contingency Funding Plan simulations to test and ensure balance sheet capacity during liquidity crises.

• Ensure the integrity and accuracy of liquidity-related regulatory reporting. Provide actionable insights and reporting to Senior Management and Board of Directors.

2. ICAAP & Stress Testing

• Embed the ICAAP and RAS through banks’ strategic-decision making process and ensure the linkage between RAS/ICAAP and other key strategic processes (strategy, budget)

• Perform risk identification material assessment (risk inventory, materiality assessment framework, risk mitigation, linkage with RAS, ICAAP, and stress tests)

• Execute stress test models for the entire balance sheet and liquidity requirements, considering all different dimensions -segment, geographies and products - of the bank

• Work alongside business stakeholders to develop, understand, and translate stress parameters into the final balance sheet projections and liquidity metrics

• Analyze and present results in a concise yet informative manner to Senior Management and Board of Directors

• Produce qualitative write-ups commenting on the bank's capital and liquidity position in various stress scenarios

• Produce final ICAAP pack for regulatory submissions

• Support documentation of stress test models methodology, ensuring it is in compliance with internal governance standards and regulatory requirements

3. Climate Change Risk

• Support the Bank’s Climate Risk strategy, driving policies, risk measurement methodologies, and integration of physical and transition risk assessments across all business lines.

• Oversee compliance with climate-related frameworks and requirements set by Bank Negara Malaysia, the Securities Commission Malaysia, Bursa Malaysia, and relevant regulatory bodies.

• Conduct research and keep abreast of developments within the area of climate risk to enable effective identification, tracking and reporting of climate risk faced by the Bank.  In addition, utilize this information to support development of proposals for the Bank’s climate risk strategies. 

• Prepare periodic climate risk reports to appraise Management and Board Committees of activities related to management of climate-related risk (this includes Physical and Transition Risks). 

• To act as a liaison for climate-related queries from business and other stakeholders when required.

Managerial (team/group responsibilities)

• Ensure risk management priorities are reflected in the company's strategic plans.

• Effective leadership skills in driving objectives from within the team and Group Risk division. 

• Guide team members to continuously upskill expertise to consistently deliver high quality work. 

• Ensure equitable and efficient work distribution amongst team members for effective operational continuity.

• Implement succession planning.

Managerial (team/group responsibilities)

• Ensure risk management priorities are reflected in the company's strategic plans.

• Effective leadership skills in driving objectives from within the team and Group Risk division. 

• Guide team members to continuously upskill expertise to consistently deliver high quality work. 

• Ensure equitable and efficient work distribution amongst team members for effective operational continuity.

• Implement succession planning.

Jobholder Requirements

Education/Qualification

• Bachelor's degree or higher.

• Minimum 10 years of relevant experience in the banking/finance/investment industry with at least 3 years of experience in the middle management level (1-down or maximum 2-down from C-Suite) in the areas of Balance Sheet, Liquidity / IRRBB and/or compliance.

• Member of a locally/internally recognized risk management professional body is preferable 

Experience

• Demonstrated track record as a business partner in striking balance between risk and business. 

• Effective integration of risk frameworks and methodologies into the Bank’s overall business strategy.

• Strong knowledge of liquidity risk management and ICAAP including BNM regulations, banking practices and procedures.

• Demonstrated ability to effectively communicate, both orally and in writing, through all levels of the organization

• Proven leadership with strong ability to organize and plan strategically in the execution of complex, grey and challenging situations/assignments.

• Ability to handle and manage highly complex factors in risk analysis and financial modelling.

• Totally conversant with broad and enterprise aspects of banking as credit, liquidity, sustainability and capital related risks cannot operate in isolation to other areas of banking.

• Skilled in conducting scenario analysis and stress testing exercises to assess the bank’s resilience to adverse events by simulating various scenarios and their impact to the bank’s financial stability.

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