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Credit Risk Manager

3 months ago


Los Angeles, United States augmentjobs Full time
Job DescriptionJob Description

Job Title: Credit Risk Manager

Job Summary: As a Credit Risk Manager, you will be responsible for overseeing the credit risk management function within the organization, ensuring prudent credit policies, procedures, and risk assessment frameworks are in place. This role involves evaluating creditworthiness, mitigating credit risks, and optimizing credit portfolio performance to support sustainable lending practices and financial stability. You will collaborate with lending teams, risk management professionals, and senior management to develop strategies, policies, and controls that align with regulatory requirements and business objectives.

Roles and Responsibilities:

  1. Credit Risk Assessment and Analysis:

    • Evaluate credit applications, assess creditworthiness, and determine appropriate credit limits and terms based on financial analysis, credit scoring models, and risk assessment frameworks.
    • Conduct thorough financial statement analysis, cash flow projections, and collateral assessments to mitigate credit risk and ensure compliance with lending policies and regulatory guidelines.
  2. Credit Policy Development and Implementation:

    • Develop and implement credit policies, underwriting standards, and risk appetite frameworks to guide credit decision-making processes and ensure consistency across lending activities.
    • Monitor adherence to credit policies, review credit exceptions, and recommend policy enhancements or revisions based on changing market conditions and risk dynamics.
  3. Portfolio Management and Monitoring:

    • Monitor credit portfolio performance, analyze credit trends, and assess portfolio quality metrics (e.g., delinquency rates, loss ratios) to identify emerging risks and opportunities for risk mitigation.
    • Implement strategies for portfolio diversification, credit concentration limits, and risk-based pricing to optimize risk-adjusted returns and minimize credit losses.
  4. Credit Risk Reporting and Communication:

    • Prepare regular credit risk reports, dashboards, and presentations for senior management, board of directors, and regulatory authorities, highlighting key risk exposures, trends, and mitigation strategies.
    • Communicate credit risk insights, policy updates, and portfolio performance reviews effectively to stakeholders, fostering transparency and informed decision-making.
  5. Regulatory Compliance and Governance:

    • Ensure compliance with regulatory requirements, industry guidelines (e.g., Basel III), and internal risk management policies related to credit risk assessment, provisioning, and reporting.
    • Collaborate with compliance officers, internal auditors, and external regulators to address audit findings, regulatory inquiries, and risk management best practices.
  6. Cross-functional Collaboration and Stakeholder Management:

    • Partner with business units, loan officers, and relationship managers to provide credit risk expertise, guidance on complex credit decisions, and support for new product initiatives.
    • Build and maintain relationships with external credit rating agencies, financial institutions, and industry peers to stay informed about market trends, credit risk practices, and industry benchmarks.

Skills Required:

  • Credit Risk Management: Strong knowledge of credit risk principles, credit analysis techniques, and risk assessment methodologies within financial services or banking sectors.
  • Financial Analysis: Proficiency in financial statement analysis, cash flow modeling, and credit scoring techniques to evaluate borrower creditworthiness and assess repayment capacity.
  • Regulatory Knowledge: Familiarity with banking regulations, compliance requirements (e.g., Dodd-Frank Act, SARBOX), and risk management frameworks governing credit risk practices.
  • Communication: Excellent interpersonal and communication skills to convey complex credit risk concepts, present findings to diverse audiences, and collaborate effectively with stakeholders.
  • Problem Solving: Ability to identify credit risk issues, analyze data-driven insights, and develop pragmatic solutions to mitigate risks and optimize credit portfolio performance.

Education and Experience:

  • A Bachelor's degree in Finance, Economics, Business Administration, or a related field is typically required; advanced degrees (e.g., MBA, Master's in Finance) or professional certifications (e.g., FRM, CFA) may be advantageous.
  • Proven experience (typically 5-7 years) in credit risk management, commercial lending, or financial analysis roles within banking, financial services, or credit rating agencies.
  • Demonstrated leadership experience in managing credit risk teams, overseeing credit policies, and driving risk management initiatives.

Compensation:

  • The compensation package for a Credit Risk Manager typically includes a competitive base salary, performance-based bonuses tied to credit risk metrics and portfolio performance, and potentially stock options or incentive compensation.
  • Additional benefits such as health insurance, retirement plans, and professional development opportunities may also be provided based on the employer's policies.