Customer Credit Risk and Profitability Analyst

Job Summary

The purpose of this role is to support the Manager Customer Credit and Pricing, for the effective execution of the credit risk mandate, with specific focus to develop, implement, review and monitor the effectiveness of the Personal and Private Bank Customer Credit Risk Strategy.

Job Description

• Accountability: Credit Risk Appetite Setting / Review
• Identification of risk segments at customer level, based on default risk, volatility and profitability
• Forecasting of balance rundowns and limit utilisations given Finance monthly booking forecasts
• Forecasting of income, cost, and impairment charges, given financial input assumptions and historical account behavior within risk segments
• Optimising application value distributions across risk segments to achieve return and earnings volatility targets
• Setting vintage delinquency thresholds to trigger action by means of risk cutbacks in order to maintain risk levels within appetite
• Monthly monitoring of the adherence to risk appetite thresholds
• Making sure the above strategies are in line with the risk appetite, which include but not limited to maintaining Loan Loss Rate (LLR’s), Return on Regulatory Capital (RoRC’s) and default rates are within risk thresholds
• Reviewing and implementing policy and business rules to assist with mitigating risk in the underwriting strategies
• Developing alternative acquisition and profitability strategies by making use of alternative data or alternative methodologies
• Strategy Design & Analysis
• Develop, review, implement and monitor new, existing customer underwriting strategies and pricing and profitability strategies
• Ensuring that the above strategies are in line with the risk appetite, which include but not limited to maintaining Loan Loss Rate (LLR’s), Return on Regulatory Capital (RoRC’s) and default rates are within risk thresholds
• Reviewing and implementation of policy and business rules to assist with mitigating risk in the underwriting strategies
• Developing alternative acquisition and profitability strategies by making use of alternative data or alternative methodologies
• Monitor and Report on Estimated Profitability
• Monitor and report new business expected profitability, considering pricing, risk profile, cost structure and funding costs
• Monitor total book expected profitability
• Challenge credit risk strategies where appropriate and initiate changes to address concerns
• Existing Customer Management
• Produce reports for the Portfolio Quality Review to track customer movements and key risk metrics
• Monitor customer stress and key concentration risk metrics
• Produce analytics to identify and mitigate credit risk across the portfolios
• Analyse the impact of the current macro-economy, book growth, and bank initiatives on the credit health of the customers and the achievement of risk appetite
• Diagnose root causes of concerns raised in observed customer behaviour
• Identify opportunities to support and optimise responsible book growth and credit risk management
• Control Environment
• Monitor Exceptions
• Challenge control environment and facilitate changes as required – based on potential concerns identified
• Stakeholder management
• The above tasks would require liaising with, amongst others, the following teams under the guidance of the Manager Customer Credit and Pricing: Risk measurement / impairments, Model development, Acquisitions, Finance, Collections, Product / Business MI teams, Operational/implementation areas

Education And Experience Required

• Bachelor’s Degree or Advanced Diplomas in risk management, statistical analysis, actuarial science, mathematics, statistics, econometrics, finance or equivalent NQF level 7 qualification
• SAS or other programming language and Advanced Excel capabilities

Knowledge & Skills

• Credit Risk Innovation
• Problem solving skills
• Analytical skills
• Modelling skills
• Understanding of Customer Experience processes and policies
• Understanding of business strategy
• Credit Pricing
• Understanding of different Pricing methodologies and strategies
• Understanding of acquisition, pricing strategies or credit risk modelling
• SAS / Other programming languages
• Sound understanding of Financial and Management Accounting – Cost Allocation theories etc
• Good understanding of Pricing and Product systems
• Communication, Networking and People skills
• Understanding of customer analytics and segmentation models
• Understanding of statistical models
• Mathematical Skills

Competencies

• Ability to work under pressure
• Delivering results and meeting customer expectations
• Coping with setbacks

Education

• Bachelor’s Degrees and Advanced Diplomas: Business, Commerce and Management Studies (Required)

Company Information

Absa Bank Limited is an equal opportunity, affirmative action employer. In compliance with the Employment Equity Act 55 of 1998, preference will be given to suitable candidates from designated groups whose appointments will contribute towards achievement of equitable demographic representation of our workforce profile and add to the diversity of the Bank.