Specialist: Risk Management; Financial Services

Specialist:
Risk Management (Financial Services) Job Purpose

The Specialist:
Risk Management assures that residual value risks of BMW Financial Services (South Africa) (Pty) Ltd (SF3-ZA) are identified, analysed, steered and communicated appropriately within the local SF3-ZA and the SF central functions. The associate is also responsible for managing and steering residual value risk on a predictable and profitable basis. The function is responsible for safeguarding the company’s assets and liabilities from adverse market movements, principally related to residual value (RV) risk through proactively managing risks and setting risk parameters in accordance with both, economic projections and the risk strategy/appetite.

The function assures that the local SF3-ZA entity is compliant, at all times, with BMW Central Residual Value Risk and related guidelines along with applicable local regulations.

• Steer all residual value risk related topics and proactively drive improvements on all latest developments.
• Presents the residual value risk management topics in various committees or working groups, e.g. local management committee, national risk committee, RV expert working group.
• Understand and supports liquidity risk processes.
• Responsible for establishing and monitoring of local RV risk guidelines/regulations, risk policies, procedures and controls in retail and commercial finance business areas within the local organization.
• Responsible for ensuring compliance with the SF central guidelines and for handling exception requests in local competence or with central risk function.
• Steers the local residual value setting process, interacting with remarketing department, National Sales Company (NSC) and SF Headquarters.
• Responsible for monitoring, validation, development and implementation of RV risk models, impairment methodology, etc. based on central guidance.
• Develops, evaluates and implements changes to residual value risk related systems and processes to enhance effectiveness and efficiencies. Responsible for accuracy and quality assurance of residual value related system.
  
  - Manages methodological changes.
• Prepares internal / external prognosis and internal realized market value information.
• Liaises with external prognosis institutes on a regular basis to discuss current market trends and influence the positioning of BMW Group products.
• Valuates the RV risk bearing Portfolio (Leasing/Select) at least on a quarterly basis.
• Calculates the standard RV risk cost according to central RV Risk Guideline for new business booking and planning and the expected losses.
• Supports the implementation of RV-based products and conducts necessary analysis required for the NPPprocess. Advises on necessary tools.
• Consults on residual value reserve level to ensure adequate provision coverage of portfolio.
• Initiates measures and leads projects to further develop the local RV risk management (e.g. purchase of external prognosis data).
• Cooperates with cross-functional teams (Sales, Operations, Finance) to gain efficiencies in the RV and Sales success.
  
  - Initiates and leads projects to further develop the local residual value risk management
• Regularly validates and back tests all parameters (Standard Risk Cost, Provisioning, and RVaR). Manages the residual value risk parameters calculation, methodological changes and stress-testing.
• Analyses the impact of historical and predicted economic, industry, product, competitor and demographic changes on the existing and future portfolios. Recommends appropriate reserve (provision) and risk costs levels for budgets and long-range forecasts.
• Stays informed about latest developments (and regulators’ requirements) regarding methods of residual value risk detection and evaluation, and if appropriate, will decide with the CRO on implementation. Function must ensure that organization is compliant on residual value risk related regulations
• Liaises with local and central departments to ensure transparency and accuracy of residual value risk management and reporting.
• Reviews local reports to discover trends and changes of residual value risk KPIs. Researches the questions raised by the monthly reporting and develops analysis to better understand and explain changes. Responsible for further development of the reports and definition of market specific risk KPIs.
• Performs stress tests and scenario analyses applying centrally provided parameters and procedures on a regular basis.
• Responsible for the implementation of audit (internal and external) findings in residual value risk area.
• Monitors residual value risk related outsourced activities as well as off balance activities and risk concentrations.
• Identify improvement and new opportunities to enhance controls and increase effectiveness, in residual value risk related functions.
• Active management and steering of vendors supporting residual value risk function. Job includes ensuring contractual documentation and adherence to same, KPI/ deliverables…