The main mission of the Risk Management department and Chief Risk Officer is to contribute to the sustainable development of the Société Générale Group's (the Group) and the SG Seoul branch activities and profitability by establishing, in its role as second line of defense, a risk management and monitoring system. In carrying out his/her duties, the Chief Risk Officer combines independence from the business lines with a close collaboration with core businesses which are responsible in the first instance for the transactions they initiate.
Société Générale operates an integrated model whereby the risk management principles and Risk Appetite Framework (“RAF”) defined at Group level are cascaded down to Business Units (“BU”) and the SG Seoul branch in a consistent manner, while accounting for local specitic regulatory requirements.
The Chief Risk Officer (CRO) of SG Seoul branch has the following major accountabilities:
- Oversee the development and implementation of a risk management framework that is commensurate with the structure, risk profile, complexity, activities and size of SG Seoul branch and consistent with the Group risk management policies and the Group Risk Management Framework defined by RISQ head office, namely : provide oversight, support, and challenge to the activities across all applicable lines of business and risk; support the first line of defense in maintaining the company’s risk profile in line with the Risk Appetite Statement and determining and implementing risk mitigation strategies.
Coordinate the relevant teams locally and at Group level to provide :
- Risk Identification and Assessment: conducting both contiunuous and periodic processes ;
- Risk Measurement and Monitoring: monitor all risks and ensure risk management and mitigation at entity level, reliying on risk management frameworks ;
- Management Information: report the level of risk across all risk types, in particular vs validated risk appetite and limits allocated, produce and circulate relevant dashboards and information packages to the appropriate Committee and Management levels.
- Ensure adequate set up, ie a risk organization where the teams have sufficient resources in terms of staff (both quantitative and qualitative: experience, qualification), information systems and access to internal and external information necessary for the performance of their duties.
- Ensures that the staff of the risk management function have sufficient experience, qualification and an adequate position to carry out their missions within the company.
- Interact with the various regulators (FSC, FSS, BOK, KRX, KDIC, etc) as the case may be documentary request, verbal discussion, onsite inspections, etc.
- Contribute to effective governance: play an active role in entity committees, offering constructive challenge, helping governance bodies to fulfil their roles and responsibilities. Where the CRO acts as a Co-Chair of the branch ERC (Enterprise Risk management Committee), ensure the committee is effective in all aspects of its role. Facilitate and encourage informed and constructive debate on key issues and ensure that members receive relevant management information in an accurate, timely and clear form.
- Monitoring and analyzing overall risk exposures of the business, including measuring all losses that the businesses would experience under a variety of normal and extreme market conditions.
- Define limits for portfolios and businesses and ensure that appropriate policies and procedures are in place to monitor limits.
- Engage in regular reporting to the branch Risk Committees including second line review of relevant risk appetite statements, risk profiles, emerging risks, significant financial and non-financial risk exposures, policies and practices, deep dive risk reviews as applicable.
- Alert management including escalation to his/her reporting line in RISQ head office and the branch General Management immediately of any significant changes to business risks and internal control effectiveness or on discovery of any material regulatory breach.
- Identify emerging risks within SG Seoul branch and potential impacts of macro economic, political, technological, Environmental Social and Governance (ESG) scenarios on SG Seoul branch. Continue to build out risk capabilities as regulatory landscape evolves: harvesting, analyzing and assessing risk information across the branch.
- Develop processes to address audit and regulatory findings quickly and effectively.
- Continue to build out and maintain a strong team by infusing new talent where appropriate to increase level of expertise in key areas and developing internal talent to secure succession planning. Build a culture of accountability at the individual and team level. Contributes to disseminate a risk culture.
Specifically, overseeing the management of the following risk categories from a LOD2 perspective:
- Credit Risk:
- Implement and supervises credit policy and procedures.
- Ensure that credit risks assumed by SG Seoul branch are properly assessed, measured, validated and managed in compliance with the bank’s risk policies, the risk appetite and its delegated powers.
- Review transactions, limits and regulatory parameters in line with the credit risk framework to ensure that risk appetite remains within established tolerance levels.
- Identifying risks arising from the entity; including an independent risk oversight of credit exposure booked in the entity;
- Report the credit risk portfolio of SG Seoul branch to the branch Management and to RISQ head office by conducting portfolio analysis.
- Market Risk and Counterparty Risk:
- Implement an effective framework based on appropriate limits, in conformity with the bank’s risk policies.
- Apply the appropriate measurement methodologies.
- Analyse and control market risks generated by SG Seoul branch market activities.
- Provide appropriate level of information to the branch Management and to his/her reporting line in RISQ head office.
- Operational Risk:
- in conformity with the bank’s risk policies, implement framework for operational risk management as well as conducting independent review to ensure the overall set up is sound, efficient and aligned to local regulatory expectations,
- Review, challenge and complement the implementation by the first line of defence of the norms and framework for operational risk management.
- Provide the branch Management and his/her reporting line in RISQ head office with an independent and consolidated view of operational risks on the SG Seoul branch.
- Liquidity and Structural Risk:
- In conformity with the bank’s risk policies, implement framework for liquidity and structural risk
- Ensure that whole-firm principles apply locally, taking into account any specificity
- Provide the branch Management and his/her reporting line in RISQ head office with an independent and consolidated view of liquidity and structural risks on the SG Seoul branch.
- Environmental and Social Risk:
- Ensure that whole-firm principles apply locally, and if need be escalate for advice to the Group
- Committee participation
The Chief Risk Officer is the Co-Chair of SG Seoul Branch ERC(Enterprise Risk management Committee)
The Chief Risk Officer is a Member of;
- ALCO (Asset-Liability Committee),
- Credit Committee,
- ORC (Operational Risk Committee),
- OS (Outsourcing Service) Committee,
- Resilience Risk Committee,
- 3RC (Regulatory Reporting Recertification Committee),
- ICC (Internal Control Committee),
- FCC (Financial Crime Committee)
- NPC (New Product Committee)
- MANCO (MANagement COmmittee)
- Level of automy and authority
The CRO has a very high level of autonomy and authority: (specify, as detailed above)
- authority and full access to information within the institution
- authority to seek information and explanations from senior management
- authority to challenge the business strategic plan
- authority to rise concerns and participate in key decision-making process
- authority to represent the RISQ Function (eg in committee, senior management meetings, meetings with external parties)
- Delegated responsibilities
The CRO supervising the management of the risk matters (Credit, Market, liquidity and operational risks) throughtout the branch with the help of the RISQ/ASI teams by delegating to the functional expert teams for
- RISQ/ASI/CIB is responsible for monitoring all credit risks related to Corporate and Investment banking clients
- RISQ/ASI/RMA in charge of framing and monitoring the significant risks on market activities.
- RISQ/ASI/ERM is responsible for the implementation of a comprehensive enterprise risk management (“ERM”) framework that is designed to employ an integrated approach to identify, assess, monitor and manage the risk in adherence to the Asia-Pacific Business Unit Risk Appetite.
- RISQ/ASI/OPE supports RISQ/ASI/ERM and the local CROs for the methodologies used and in implementing the system to manage and monitor operational risks and the risk framework as LOD2
- RISQ/ASI/CTL performs the second level of controls for operational risk RISQ/ASI/ALM services on liquidity and structural risk framework and methodologies.
- RISQ/ASI/COO serves as the primary liaison between the Risk groups and the various support partners.
- 15+ years of professional experience in a leading financial services firm in the areas of finance, risk, legal or government/public affairs, or in a related trade association or regulatory agency, or experience in a related field are required.
- Deep knowledge of regulation, reglementation and risks management, including Credit Risk, Market Risks, Operational Risks, Models Risks, ALM and structural Risks.
- Sound financial analysis capabilities.
- Solid understanding of all Enterprise Risk categories including both financial and non-financial risks
- Within established risk appetite parameters, makes sound, well-informed, and objective decisions that support accomplishment of organizational goals
- Strong analytical skills and process orientation.
Individual Conduct Rules:
- Acting with integrity, due skill, care and diligence.
- Being open and cooperative with the regulators.
- Paying due regard to the interest of the customers and treat them fairly.
- Observing proper standards of market conduct.
- Meeting the competencies as defined by the SG leadership Model.
- Acting with safety and sustainability.
- Inspire an environment of commitment and engagement by effectively communicating a clear vision and strategy for success and development of teams’ mission and people.
- Lead with responsibility and autonomy to make decisions while mitigating risk and generating outstanding individual and collective performance.
- Grow teams’ mindset by encouraging innovation and collaboration to generate new ideas and facilitate and embrace progress and change.
- Influence synergies by providing advice and promoting team spirit by considering and respecting other opinions and ideas Demonstrate the leadership necessary to make the organization's mission a success. This includes providing vision direction, attracting followers, and all other aspects of successful leadership.
Management Skills :
- Builds and shares a common prospective vision for his/her department, and ensures regular and simple communication of the Roadmap and results to all staff to engage them and preserve employability, as well as synthetic measurement. Spots and grows Talents within his/her scope to ensure sustainable managerial succession and retention of the key profiles.
- Protects the company: deploys the risk culture in his/her department through policies, communication and training, measures understanding and brings corrective actions to secure full adherence. Balances long & short-term impacts (cost and deadline monitoring, operational efficiency, reputation) to form sound judgements & decisions (cost, deadlines, reputation), and communicates them. Abides by the rules and the framework and guarantees implementation of operational compliance.
- Establishes a culture of responsibility, trust and exemplarity and abides by them in one's daily demeanor: communicates clearly on expected behaviors & targets (ESG, work life balance, speak up, inclusion), acts with courage. Makes decisions towards a stimulating and serene working environment, whilst favoring autonomy
- Fosters openmindedness and innovation: stimulates open debate, supports new ideas, cascades the Manco's priorities re. ESG, Diversity & Inclusion, Data Maturity & IS, Culture & Conduct and communicates on a selection of related actions fitted to the entity's identity and emergencies.
Required registrations :
The branch CRO shall meet the qualifications prescribed in Article 28 (Appointment, Dismissal, etc. of Risk Managers) of ACT ON CORPORATE GOVERNANCE OF FINANCIAL COMPANIES. The qualifications are;
(3) To qualify as a risk manager, a person shall have expertise and practical experience in risk management and shall meet all the following requirements:
1. The person shall have no record of a warning of reprimand or a request for salary reduction, or any heavier measure, from among the disciplinary measures specified in Article 35 (1) and (2), imposed upon him/her by the Financial Services Commission, the Governor of the Financial Supervisory Service, or any other institution specified by Presidential Decree for any violation of this Act or any finance-related statute during the last five years;
2. The person shall meets the requirements in any of the following items: Provided, That a person in whose case five years have not passed since he/she retired or resigned from any of the institutions specified in item (c), from among the persons who meet the requirements in any of the following items, shall be excluded herefrom:
(a) A person who has worked for an institution subject to the inspection under Article 38 of the Act on the Establishment, etc. of Financial Services Commission (including foreign financial companies equivalent to such institutions) for at least ten years;
(b) A person who holds a master’s degree or any higher degree in a finance-relate field and has worked as a researcher in a research institute or as an assistant or any higher-ranking professor in a university in the field of risk management for at least five years;
(c) A person who has been engaged in business affairs related to risk management in the Financial Supervisory Service, the Bank of Korea, the Korea Deposit Insurance Corporation, or any other finance-related institution determined by the Financial Services Commission, for at least seven years;
(d) Other persons specified by Presidential Decree who are qualified equivalent to those under items (a) through (c).
(4) Where a person who has become a risk manager fails to meet the requirements under paragraph (3) 1, he/she shall forfeit such position.
Societe Generale is one of the leading European financial services groups. Founded in 1864, we have been playing a vital role in the economy for over 150 years. With more than 133,000 employees based in 61 countries worldwide, we accompany 32 million clients throughout the world on a daily basis. Based on a diversified universal banking model, the Group combines financial strength with a strategy of sustainable growth.
Summary of the key objectives and primary goal(s)
The RISQ Management department (“RISQ”) in SG Seoul branch (“the branch”) is responsible for identifying, measuring, monitoring, approving, and controlling risks pertaining to the branch’s activities (i.e., conducted by the branch’s Business Line, and booked in the branch). The RISQ supervises Global Banking and Investor Solutions activities and is then focused on Capital Market (MARK), Global Financing (GLBA), and Global Transaction Banking (GTPS).
We are an equal opportunities employer and we are proud to make diversity a strength for our company. Societe Generale is committed to recognizing and promoting all talents, regardless of their beliefs, age, disability, parental status, ethnic origin, nationality, gender identity, sexual orientation, membership of a political, religious, trade union or minority organisation, or any other characteristic that could be subject to discrimination.