Physical Commodities Risk Assurance

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Physical Commodities Risk Assurance (PCRA)

Physical Commodities Risk Assurance is responsible for the risk management function that provides second line risk oversight, risk assurance and risk management relating to physical commodities owned by ICBCS, managed by ICBCS as a custodian for clients or held as collateral by ICBCS to support transactions.

The PCRA function is responsible for second line risk oversight, risk assurance and risk management relating to all physical commodities in the Bank. Physical commodities currently include the full range of precious metals, base metals and energy products. Typical transactions involving physical commodities are proprietary trading or risk management and financing transactions whether on an ownership basis or otherwise. The primary risk governance committee is Physical Commodities Committee (PCC).

The purpose of the PCRA function is to provide assurance that the risks to which ICBCS is exposed as a result of its activities involving physical commodities are managed effectively. This includes both direct risks of financial loss arising from physical commodity inventories or transactions involving physical commodities and associated credit, market, operational, legal, insurance, reputational or regulatory risks arising from second order impacts.

The function includes defining, updating and managing ongoing application of the risk framework including policies and risk review, physical inspection and risk assessment, reporting and other risk management procedures through which physical commodities risk is managed.

What you'll be doing

This role is a key part of the Physical Commodities Risk Assurance (PCRA) team with a focus on physical commodities in Europe and the Americas and during London hours, reporting to the Head of PCRA in London.

You'll be responsible for:

• Managing the PCRA function during London hours in order to deliver effective risk assurance and risk management of physical commodity risk exposure with a focus on Europe and the Americas in a balanced and proportional manner in accordance with internal and regulatory standards and risk appetite.
• Deliver physical commodity risk assurance with a focus on Europe and the Americas including the following activities:
• Work with stakeholders in the Commodities business during London hours to ensure effective and efficient implementation of physical commodity risk management, and ongoing alignment with evolving business requirements
• Plan and manage PCRA physical inspection and desktop assurance activity, including participation in warehouse/vault/refinery/terminal/port visits with a focus on Europe and the Americas, performance of desktop assurance reviews and agreeing and tracking actions and ensuring appropriate insurance is in place.
• Perform joint client visits or review of new structured physical commodities transactions solely or with other functions including credit and market Risk, and assist in identifying, understanding and managing the risks of physical commodities transactions
• Provide independent assurance of the effectiveness of the physical commodities control environment, and the appropriateness of operations controls & processes on trade administration, physical trade contracts, logistic arrangements, settlements, storage control and reconciliation and insurance.
• Perform independent reviews of physical market liquidity, exit costs, haircuts and other limits and triggers used to managed physical commodities risk
• Deliver thematic, desktop and other risk reviews as appropriate
• Ensure daily and monthly reporting on location, group service provider and physical inventory limits, aged inventory, and first line inspection activity (with a focus on Europe and the Americas) is accurate, comprehensive and performed in an efficient and timely manner
• Approve and support the on boarding of new locations with a focus on Europe and the Americas following appropriate due diligence
• Assist with contributions to the agenda and pack for PCC
• Assist with delivery of suitable reports and management information with regards to PCRA for PCC and other relevant governance committees
• Develop and maintain suitable systems and controls in support of PCRA including monitoring of dashboards and exposures against limits
• Liaise with stakeholders in London hours on matters related to PCRA and build and maintain strong relationship management to support the efficiency and effectiveness of the function.

What you'll need to be successful

We're looking for the following skills and experience. If you don't have all of these but think you could be a good fit for the role, get in touch.

• Experience in risk, commodities and/or front office function of investment bank
• Knowledge and experience of physical commodity risks across metals and energy and associated risk management including associated credit, market, operational, legal and insurance risk
• Practical experience in a…