Stress Testing Job Description
Stress Testing Duties & Responsibilities
To write an effective stress testing job description, begin by listing detailed duties, responsibilities and expectations. We have included stress testing job description templates that you can modify and use.
Sample responsibilities for this position include:
Stress Testing Qualifications
Qualifications for a job description may include education, certification, and experience.
Licensing or Certifications for Stress Testing
List any licenses or certifications required by the position: MBA, MS, ACLS, NIHSS, PMP, BLS, SAS, CCNP, CCNA, FRM
Education for Stress Testing
Typically a job would require a certain level of education.
Employers hiring for the stress testing job most commonly would prefer for their future employee to have a relevant degree such as Bachelor's and Master's Degree in Finance, Economics, Mathematics, Statistics, Engineering, Accounting, Education, Business, Graduate, Physics
Skills for Stress Testing
Desired skills for stress testing include:
Desired experience for stress testing includes:
Stress Testing Examples
Stress Testing Job Description
- Writing and implementing stress testing procedures to strengthen the reliability and repeatability of key processes used in the capital stress testing and adequacy framework
- Portfolio-specific Stress testing
- Develop, or, where already existing, enhance and execute, stress testing methodologies and processes for specific Commercial portfolios (CRE, Asset-based lending, etc) and use the information provided by such stresses to inform the risk management activities in those portfolios
- Prepare commercial portfolio performance reviews to identify deterioration and weakening trends in various asset classes, industries, and geographies
- Independent monitoring and control function for stress testing output across the bank
- Provide support in setting the agenda for the Group's firm-wide stress testing and portfolio analytics activities
- Assisting in analysis of stress testing results
- Assisting in the establishment, support and maintenance of processes for delivering high-quality results for all Stress Testing, Capital Planning and DFAST activities to ensure timely and accurate regulatory and non-regulatory submissions
- Providing assistance in the remediation of regulatory recommendations related to Capital Stress Testing Team’s portfolio of activities
- Stay abreast of industry best practices on regulatory guidelines and economic/financial model develop
- Load data into financial reporting systems and reconcile to source documents
- Ability to solve problems collaboratively in ambiguous, complex, or stressful situations
- Knowledge of financial systems & reporting environments (e.g., QRM, Essbase, Hyperion)
- Coordinating – interact with executives and senior level resources across the Bank and externally to discuss and implement the mandate
- Advising – work with many groups across the Bank on providing information on the implementation of new strategies and how they will be affected
- Monitoring – assist direct reports in ensuring strategies are being implemented with the support of LOBs and other Finance areas
Stress Testing Job Description
- Agreeing the stress testing architectural strategy and ensuring it is in line with the wider risk architecture and business processes
- Becoming a subject matter expert on key stress testing related regulation
- Good working knowledge of regulatory stress testing, including the ICAAP, Bank of England and CCAR
- Broad knowledge of banking products, including derivatives across multiple asset classes, risk management processes and BCBS regulatory principles
- Assisting in the remediation of regulatory recommendations related to Capital Planning Team’s portfolio of activities and in the development of business requirements and preparation of impact analysis for any changes in DFAST regulations
- Partnering with the lines of business, Finance and Risk departments other corporate functions
- Developing and maintaining strong individual and team performance
- Develop analytics of key drivers of results and changes in business and capital strategy
- Directly leading and managing a team of dedicated analysts
- Serve as primary liaison between all planning groups involved in the process including corporate groups such as Finance, Treasury, Tax and Risk (for both Banks) with Line of Business representatives
- Full breadth and depth of knowledge of Basel Rules and methodology used in measuring Losses and Regulatory Capital, in addition to Credit Risk concepts and parameters (PD, LGD, EAD)
- A proven track record in the successful implementation and day-to-day management of credit risk appetite frameworks
- A good understanding of modern credit risk management practices and relevant regulation such as CCR framework, AIRB, Basel 3
- Relevant involvement in designing and running credit scenarios for a peer bank
- First-hand experience in using credit risk models for measuring exposures, wrong way risk, settlement risk and residual risks
- Risk identification framework process and monitoring
Stress Testing Job Description
- Enhance stress testing process documentation submitted to the FRB
- CCAR/Loss Forecasting
- Oversee the construction, testing, implementation, back testing, documentation and enhancement of commercial loss forecasts, specifically credit and operational loss forecasting utilizing default probabilities and loss given default measures, with specific regard to the Bank’s CCAR program
- Develop challenger models to the loss forecasting approaches already in place and continue to maintain and enhance both sets of approaches
- Work collaboratively with Finance, commercial lines of business, and other areas of Risk to ensure methodologies and output are in line with expectations
- Prepare and deliver presentations to senior management to enable proper review and credible challenge
- Meet with peers, internal and external auditors and validation teams, regulators to provide for a program of continuous enhancement and refinement
- Further integrate CCAR/Loss Forecasting results with the Bank’s strategic initiative discussions
- Related Activities
- Support the Commercial Dual Risk Rating (i.e., PD/LGD/EAD) models to enhance their predictability and ensure the line of business is appropriately using the models
- Stressed earnings
- Resolve complex issues in credit risk modeling, credit loss estimation, allocation of capital for performance measurement, and other aspects of risk measurement
- Minimum of ten years proven and progressive credit and financial services experience or equivalent, including the implementation of cutting edge credit risk analytics
- Strong managerial, communications, analytical, decision-making, lateral thinking, interpersonal and team building skills
- Excellent communication & influencing skills including very strong writing and documentation skills required
- Close attention to detail and ability to produce under tight timelines
Stress Testing Job Description
- Work collaboratively with credit risk reporting and related areas on concentration analyses, capital consumption and allocation analyses and the like, to support actions to reduce overall risk in the portfolio
- Prepare recommendations to adjust commercial credit underwriting standards to reduce overall risk in the portfolios
- Creating models used for market risk scenario generation
- Ensuring that models and model development adheres to regulatory (FRB’s SR 11-7 and others) and internal policies and guidelines
- Conveying requirements on new models to BAs and IT staff
- Describing and documenting models for model validation / regulators / audit
- Ongoing monitoring of model validation caveats
- Work in close collaboration with regulators to determine wholesale stress test requirements to meet prescribed methodologies and model requirements
- Developing business requirements and preparing impact analyses for any changes in DFAST regulations
- Facilitating cross-functional collaboration and managing inputs required from subject matter experts across the Bank, including those in the Risk, Finance, and Treasury departments, in the Bank’s lines of business
- Solid understanding of commercial, retail and counterparty derivative credit processes, including credit risk assessment and systems, econometrics, statistics and simulations
- Thorough understanding of credit derivative instruments, structured credit products and other risk mitigation techniques used to execute portfolio improvement strategies
- In-depth knowledge of Credit Risk and related regulatory requirements
- An advanced quantitative degree and knowledge of VaR, CVA, Credit Spreads a plus
- The role will require the candidate to both work collaboratively and independently across functions and disciplines to ensure the success of critical deliverables and initiatives
- Minimum of a bachelor’s degree or equivalent in business, finance, related field or equivalent experience
Stress Testing Job Description
- Experienced in Market Risk within
- Conversant and interested in macroeconomic and geopolitical events, both current and historical
- Experienced within a Basel III regulatory environment
- Liaising with key stakeholders within MRM, Front Office, Information Technology, Finance
- Knowledge and experience of banking, including knowledge of more than one traded asset class
- A good understanding of other Market Risk measurement techniques Value at Risk (VaR), Risk Not In Value at Risk (RNiV), Economic Capital, Infrastructure Risk Counter (IRC)
- Strong experience in Programme & Project management, Budget and Resource management and Vendor and / or Consultancy management
- A Bachelor’s degree in Economics, Mathematics or other quantitative subject (or equivalent qualification or experience)
- A strong experience in Risk Change within the Financial Market / Investment Banking industry (other relevant backgrounds Trading, Product Control, Independent Price Verification (IPV) will also be considered)
- A team player with strong communication skills, both verbally and in writing
- Ability to manage multiple tasks in fast paced and evolving environment and meet timelines without compromising the quality and integrity of deliverables
- Leadership and ability to influence internal and external stakeholders
- Ensure all appropriate authorizations/ approvals are obtained in accordance with policies and
- Operational integrity is maintained
- Understand regulatory and compliance requirements as prescribed for the operating area, and
- Finance and Corporate Areas Finance