- The Head of Credit Review is an independent specialized 2nd line of defense role that is responsible for the governance, oversight, development, execution and management of:
- A robust Assets Quality Review (“AQR”) program that provides an objective and independent evaluation of the financial integrity of Group’s credit portfolio, soundness of the credit processes that are followed under individual credit transactions and subsequently incorporates findings and recommendations into AQR reports which are distributed and presented to the Group Credit Committee and the Board Risk Committee.
- Delivering focused review services pertaining to the assets quality in the credit portfolio through effective monitoring and review of the credit environment, processes and related developments, identification of potential weaknesses and emerging trends coupled with ensuring compliance with Group Credit policy, and transaction specific credit approval terms and conditions throughout the life of the credit facility.
- Affirming and challenging the integrity of the risk rating assigned to assets in the Bank’s portfolio.
- Provide a focused and continuous evaluation of the credit portfolio, allowing for self-improvement and real-time changes across the credit management life cycle working in collaboration with 1st and 2nd line stakeholders across the Group.
- To arrange for periodic Lessons Learned sessions to be undertaken with relevant Senior Management across units (Chief Risk Officers, Heads of Credit, etc.) with the objective intended to share key findings from reviews as well as latest best practices in order to prevent repeat of similar findings going forward.
- Assist in developing a highly skilled, proactive and motivated credit quality review team to maintain high standards of risk assessment and appraisal as per the AQR program.
Principal Responsibilities, Accountabilities and Deliverables of Role:
Day to day:
- Develop and execute a robust AQR program, including scope of review coverage, and documenting associated processes and procedures. In addition, periodically review all components for potential enhancements and to ensure continued suitability for the Group.
- Monitor the annual GAQR review plan consisting of Ongoing Reviews, Thematic Reviews and Ad-hoc Reviews.
- Lead scheduled and event triggered credit quality monitoring reviews on specific credit facilities/ client relationships, which encompasses site visits and the assessment and may comment upon the following:
- Adherence to credit policies, procedures, methodologies, approach and systems used in credit risk management and recommend implementation of corrective actions as considered appropriate.
- Adherence to credit covenants, undertakings and other terms and conditions of a credit facility.
- Adherence to margining requirements for security (collateral) held to ensure values do not fall below set thresholds and call for security enhancement or top-up as necessary.
- Financial and operational performance of the borrower (s), including potential for loss and other qualitative attributes.
- Risk rating review and validation accompanied with detailed rationale, particularly when recommending differing and/or adverse risk ratings.
- Impact of trigger-events and other existing or emerging risks pertinent to the Group’s credit portfolio, including country, industry and sector developments.
- Lead scheduled and event triggered credit portfolio reviews based on risk and/or size of all credit types (i.e. project & structured finance, transaction banking, real estate, corporate & FI lending, corporate treasury, financial markets, capital markets, retail etc.). The reviews shall at minimum cover:
- Asset quality reviews – appraisal of the conduct and profitability of individual credit facilities; analysis of the borrower’s financial statements, including potential for loss and other qualitative attributes; risk rating review and validation accompanied with detailed rationale, particularly when recommending differing and/or adverse risk ratings.
- Credit approval process review – examining the approval process, including loan structure, quality and accuracy of underwriting, identification of key risks, pre-assessment, evaluation of credit approval, disbursement, and credit administration.
- Administrative and documentation review – verifying the existence and adequacy of the documents associated with credit facility files, including completeness of credit grading and accuracy of loan grades assigned by credit officers.
- Collateral (security) review – physical check of all security and loan documents, confirmation of registration status, assessment of the value and enforceability of collateral.
- Compliance review – compliance with internal policies and procedures including mandate requirements and adherence to loan covenants.
- Portfolio specific- Identify and evaluates portfolio trends with respect to delinquency, bankruptcy, demographics and other relevant factors to identify problem loans.
- Present GAQR reports and findings to the GCC ahead of formal reporting to the BRC. This will include updates on status of AQR recommendations and management action plans.
- Provide suggestions/recommendation for changes/updates/revisions to the Group credit policy.
- Assess problem loan management / workout plan effectiveness and watch list guidelines.
- Leverage available data and analytical tools during the planning, fieldwork and reporting phases of AQR delivery. (i.e. external/ internal information data for fieldwork).
- Responsible for ensuring all issues arising from credit quality monitoring and credit portfolio reviews are vetted by both the credit risk department and respective lines of business. Subsequently, agree on recommendations for remediation to confirm that they are actionable and appropriate.
- Monitor portfolio diversification in accordance with policy guidance, risk appetite and strategic plan.
- Accountable for updating the Head of Group Assets Review, the Group Chief Credit & Risk Officer and the Board Risk Committee regarding scope, status and issues vis-à-vis AQR assignments.
- Participate in preparing and reviewing the draft terms of reference for AQR engagements coupled with providing oversight, direction and expertise to ensure work performed is within established requirements and appropriate resource allocation for timely completion of the assurance assignment.
- Assess, sign-off and submit accurate and timely issue sheets and AQR reports comprising of an Executive Summary & supporting analysis highlighting performance against defined credit quality parameters for each review on a monthly, quarterly, half-yearly and annual basis for Management, and relevant Board committees.
- Represent the Asset Quality Review department in internal and external meetings and committees.
- Lead assigned special projects at the behest of the Head of Group Asset Quality Review, Group CEO or Deputy Group CEO.
- Maintain high level relationships with industry associations and AQR heads of peer organizations to enhance capacity building and benchmarking of best-practices, executing joint projects to address shared risks and concerns, developing outlines of new methodologies and frameworks, keeping abreast with regulatory expectations etc.
Internal and Intra-Group Communications:
- Maintain close working relationships with the Group Head of Assets Quality Review, the Group Chief Credit & Risk Officer, Group and Subsidiary Senior Management to achieve the Bank’s AQR objectives.
- Maintain effective working relationships with the Group Chief Credit Officer, Group Head of Risk Management, Group Chief Auditor and other executives within the Group’s Head Office, i.e. Head of Wholesale Banking Coverage, Global Business Heads and Group Treasurer to maintain awareness of business activity and new products/ developments.
- Subject matter expert on lending with respect to the Credit Risk Management framework processes and methodologies (Corporate, FI’s, SMEs and Retail) including:
- Credit Risk and Cash Flow analysis (key quantitative and qualitative aspects);
- Facility structures and legal aspects;
- Credit Risk rating methodologies;
- Portfolio Management;
- Credit Administration;
- Credit Problem Management;
- Collateral Management;
- Capital requirements for credit risk and RAROC/ RAPM;
- Product structures; and
- Single name/ country sector risk management.
- Strong understanding of corporate governance.
- Broad knowledge of applicable statutes, laws and regulations that govern banking and lending activities in countries that the Group operates in.
- Excellent spoken and written English and Arabic language skills. French and or Portuguese are a definite plus.
- Risk based Credit review techniques.
- Thorough understanding of Credit risk mitigations and financing mechanisms including structured trade finance, project finance, and syndications.
- Regulatory environment under which banks are operating.
- Risk Management and support functions.
Education / Certifications
- University Degree and Professional Qualification in finance, banking, accounting, business, audit or risk management.
- Minimum 15 years within Banking (mainly in the areas of credit risk or audit) and a preference for at least 7 years of assets quality review experience.
- Proven experience in the identification of risks and controls related to Credit Risk Management (Quality and Credit Processes) including exposure to different Credit Risk methodologies (Moody’s Risk Analyst is desirable).
- Familiarity with and exposure to different credit review methodologies and with workflow-based governance, risk and compliance software.
- Development and delivery of presentations to senior individuals.
- Excellent organizational skills and ability to work proactively without supervision.
- Excellent attention to detail and analytical skills.
- Strong judgment and decision-making skills.
- Ability to influence change and instigate policy improvement.
- Ability to lead individuals from diverse backgrounds.
- Ability to manage conflict and work under pressure.
- Strong time management and results orientation.
- Strong interpersonal skills to ensure effective interactions with all levels in the business.
- Ability to speak confidently to senior stakeholders.
- Flexible and positive approach to work, ‘can do’ attitude.
- Ability to work under pressure.