Risk Manager

What a Risk Manager does daily

• Credit risk management — assessing the credit risk of loan applications and existing loan portfolios; credit scoring model development and monitoring; concentration risk management (avoiding over-exposure to single sectors or borrowers); NPL (Non-Performing Loan) management; loan loss provisioning; IFRS 9 expected credit loss modelling; CBSL credit risk guidelines compliance
• Market risk management — identifying and measuring the organisation's exposure to changes in interest rates (interest rate risk in the banking book — IRRBB); foreign exchange risk (for organisations with foreign currency assets, liabilities, or transactions); equity price risk (for investment portfolios); Value at Risk (VaR) calculation and monitoring; stress testing of market risk positions
• Operational risk management — identifying, assessing, and managing risks from internal process failures (operational errors; system failures; fraud; business continuity failures); maintaining the Risk and Control Self-Assessment (RCSA) framework; Key Risk Indicators (KRI) monitoring; operational loss data collection and analysis; business continuity planning
• Enterprise Risk Management (ERM) framework — developing and maintaining the organisation's ERM framework; Risk Appetite Statement (what level of risk the organisation is willing to accept); risk taxonomy (classification of all risk categories); risk register maintenance; risk committee governance support
• Regulatory risk and compliance management — CBSL Basel III Pillar 1 capital requirements (credit risk, market risk, operational risk capital calculations); CBSL Pillar 2 (ICAAP — Internal Capital Adequacy Assessment Process); CBSL Pillar 3 (risk disclosure); CBSL direction compliance; regulatory stress testing
• Risk reporting — preparing risk management reports for the Board Risk Committee; ALCO (Asset and Liability Committee); Senior Management Risk Committee; CBSL risk reporting submissions; developing executive risk dashboards that communicate risk exposures clearly
• Stress testing and scenario analysis — developing and running stress test scenarios (macroeconomic stress scenarios: what happens to the credit portfolio if GDP falls 5% and unemployment rises 3%?; market stress scenarios; institution-specific scenarios); presenting stress test results to the Board; capital adequacy assessment under stress
• Credit policy and credit process management — developing and maintaining credit policies (who can borrow, how much, on what terms, with what collateral requirements); credit approval process management; credit limit setting; portfolio concentration limits
• Risk modelling — developing and validating statistical risk models (credit scorecards; probability of default (PD) models; loss given default (LGD) models; exposure at default (EAD) models; economic capital models); ensuring model performance is monitored and models are recalibrated as needed
• Insurance risk management — for insurance sector roles: underwriting risk management (pricing risk; reserving risk); reinsurance programme management; catastrophe risk modelling (for insurers with property or natural catastrophe exposure in Sri Lanka); IRCSL solvency margin compliance; actuarial liaison