Description of the Business Line or Department
The Risk Management (RISQ) Division in the UK is independent from the Business Lines. The RISQ Division's mission is to contribute to the development of the SG Group's activity by facilitating the objectives of the Business Lines while maintaining independent oversight through risk evaluation and monitoring.
The mission of the Operational Risk Second Line of Defence department (RISQ OPE, LoD2) is to provide independent, objective and leading operational risk management challenge and oversight services to assist the firm in maintaining an effective system of operational risk management.
RISQ OPE conducts oversight of the governance, risk and control frameworks and tolerances of Operational Risk.
RISQ OPE provides proactive advice to help management identify and measure key risks, and to evaluate controls in existing and expanding businesses. An objective is to accompany employees and raise awareness on the importance of operational risk management which is based on the principle that “everyone is an operational risk manager”.
RISQ OPE organises and/or tests the soundness and efficiency of the operational risk framework, especially on governance, risk identification and mitigation as well as permanent controls.
Summary of the key purposes of the role
Scenario Analysis is a key component of the Group-wide integrated operational risk framework. The incumbent will develop a Scenario approach for SG London Branch (“SGLB”) to assist with managing operational risks.
The Scenario Analysis approach identifies and assesses operational risks in support of tail risk management (low frequency, high impact). This allows SGLB to strengthen its forward-looking assessment of operational risks in a dynamic way to proactively manage significant risks before they materialise.
The Operational Risk Supervisor (Scenario Analysis) will maintain and adapt the register of Scenarios, assist participants of the process with technical advice and report regularly to executive management findings and recommendations.
The Scenario Analysis process has a direct impact on the work undertaken by the wider RISQ OPE team so there is an expectation that the role holder will be comfortable working as a team and share relevant information that other Operational Risk Supervisors can leverage in real-time. The role holder will also be required to work with counterparts in other locations, e.g. Paris (HQ), Asia and North America. S/he is expected to engage with the central RISQ OPE team in Paris to share expertise to further develop the SG Group RISQ OPE Scenarios approach.
Due to the nature of the role, the Scenario Analysis expert may from time to time support RISQ OPE with its other responsibilities to monitor, review and challenge implementation of the operational risk framework and, to assess the effectiveness of the deployed system of controls including but not limited to:
- Internal events
- Risk and Control Self-Assessment
- New Products assessments
- Emerging risks
- Outsourced Services
- Key Risk Indicators
In the context of the Leadership model, the Operational Risk Supervisor will invest its time and skills towards team work, act ethically and with courage, propose new ideas and contribute to change management, and finally lead as an example and by its support to colleagues or other teams. All these actions and values will contribute to the development of positive client impact (client being internal or external).
Summary of responsibilities
Primary Responsibilities as a member of RISQ/OPE
· Design and maintain the Scenario Analysis process, including Minimum Standards and Procedures.
· Develop and deliver related training.
· Monitoring adherence to Policy and Standards.
· Provide advice and guidance to Scenario practitioners across LoD1.
· Build and manage Scenario Analysis roadmaps, including:
- Scenario definitions.
- Facilitate collection of related internal and external information.
- Aggregated calculations of Scenario impacts.
· Produce and report to executive management, at operational risk related fora, progress against the schedule and findings, focusing on most significant tail risks.
· Provide independent opinion, analysis and expert judgement to RISQ OPE management with an assessment of the most critical risky areas, including the effectiveness of their mitigating controls. Engage with the wider RISQ OPE Operational Risk Supervisors to determine if a deep-dive of the process-risk is required.
· Be the Scenario Analysis expert and point person within RISQ OPE for all queries, including any raised by the UK Supervisory Authorities.
· Participate in any LoD1 operational risk fora in which Scenario Analysis will provide added value to the topics discussed.
· Continually develop expert knowledge and advise on best practices related to Scenario Analysis and operational risk management in general.
· Participate or coordinate with other LoD2 teams and the Third Line of Defence, as required.
Level of Autonomy and Authority
The role of Operational Risk Supervisor (Scenario Analysis) will require a very high level of autonomy. As SME there is an expectation that the incumbent will own the process from start to finish, be able to assist stakeholders with expert knowledge and be able to effectively challenge results. The role holder must understand how Scenarios are analysed and computed and be comfortable reporting to senior management independently.
That said, the role holder will be expected to make decisions on a day-to-day basis whilst consulting with RISQ management on any critical decisions.