Reference No. SR-MFMO-001
Our banking client is currently seeking to employ a Manager – Forex to be based in Johannesburg, South Africa, reporting to the CFO. The incumbent will be responsible for establishing and growing our clients Forex Middle Office, through:
- Developing, establishing, and executing frameworks against the companies Forex Middle Office mandate and risk framework.
- Representing the bank in various forums where new regulations and reforms are debated by the market.
- Influencing the companies risk management strategy and policies, in so far as Forex is concerned.
- Developing policies and procedures for the business to enable the Bank to grow responsibly in the Forex Market.
- Growing and managing the Middle Office teams in line with operational and regulatory requirements in line with the vision of the Bank.
FUNCTIONAL STRATEGY AND EXECUTION
- Work with Divisional Executive: Business Bank Finance and Group Risk Officer and provide inputs towards the development of the Forex Middle Office strategy, business plan and budget (including metrics, and an operating model to ensure the optimal delivery).
- Apply subject matter knowledge, research, and expertise to find innovative ways to make the Forex Middle Office operations more competitive and cost efficient.
- Remain up to date with advancements and developments, including technology, best practice, and legal/statutory requirements to optimise functional performance.
- Manage and control expenses and guide budgetary requirements when necessary.
- Develop, enhance and implement procedures for Forex internal processes to ensure the Group's strategic goals and objectives are ultimately met.
FOREX RISK MANAGEMENT
- Responsible for timely identification of potential risk, development of cost-effective controls, implementation and ongoing recommendations to monitor and manage Forex risk and ensure that it is escalated where necessary.
- Manage and oversee the measurement, monitoring and forecasting of Forex related risks including, but not limited to the impact on the Bank’s income of potential market price changes, settlement processes and risk processes relating to Forex intermediaries.
- Guide business analysis and oversee the implementation of technology-based solutions in Forex (not limited to the risk management function) and align the Forex risk management function to international best practice.
- Embed Forex risk management principles by analysing the existing processes and procedures using Risk Control Self-Assessment (RCSA) and Key Risk Indicators (KRI) in Forex to ensure that processes and procedures are effective, ultimately supporting and forming an intrinsic part of proper business planning and decision making.
- Identify and implement broad based risk related initiatives.
EVALUATION – Assessment
- Manage and guide the assessment of variances on all products per the system against the balance sheet on a daily basis and follow up with relevant parties to understand context and document this for purposes of preparing commentary.
- Manage and guide the assessment of day end position and level of liquid assets daily, and the identification of anomalies/variances. Follow up with relevant parties to ensure resolution and communicate outcomes to Finance, Risk and Group Forex.
- Ensure daily profit and loss verification and commentary is provided to Finance.
- Manage the execution of the dealer profitability assessment.
- Guide and oversee stress-testing and back-testing of Additional Monitoring Metrics on liquidity (“AMM”) and other Forex related assumptions.
- Ensure Forex activities (turnover, rolling trades, profitability, etc.) are being monitored.
- Responsible for daily forward exchange contracts margin management.
- Aggregate, validate and escalate normal and excessive exposures.
- Ensure the resolution of account executive and counterparty (intermediaries or clients) queries relating to margin policy /calculations.
- Manage the reconciliation of intermediary account balances with exposures covered and escalate shortfalls.
- Manage daily liquidity assessment against minimum regulatory and group requirements and communicate breaches, or near breaches, to the Divisional Executive: Forex, Finance, Risk and Treasurer.
- Manage and guide the Forex intermediary profit distributions, deal analysis and reconciliations.
- Investigate and identify trends for speculative trading, client behaviour and recommend controls to Front Office / Forex Operation.
- Collaborate with both the Divisional Executive: Forex and Divisional Executive: Finance to set measurement targets (including budgets) relating to the Forex Department.
- Liaise with Treasurer and Operational Risk to ensure processes and philosophies are aligned and rolled out / implemented in the Business Bank.
- Create and run simulations / scenarios to determine the effect of changes in the marketplace on the balance sheet and/or income statement.
- Manage the daily total net open position monitoring (CFC / FCA / FX / Nostro / Vostro etc.) and ensure any breaches are escalates immediately to the Operational Risk Manager.
- Ensure the adherence to the process of matching and managing long dated FEC exposures (e.g. FECs with a maturity of more than 1 year require prior approval from ALCO) is monitored.
- Manage the monitoring and assessment of Forex Operations processes with regards to deal authorisation, validation and general forex process management and ensure that instructions received from the SARB and/or FSCA are adhered to (e.g. blocked trades / erroneous trades).
- Ensure expired counterparty Forex facilities are monitored and distributed to relevant stakeholder for rectification.
- Ensure the daily Forward Exchange Contracts Margin Management (including daily Forex collateral management) is conducted. Monitor any maturity mismatches (including Forex assets & liabilities) per currency.
- Oversee the monitoring and evaluation of Forex positions and review against previous month’s results.
- Responsible for effective Forex activity monitoring (daily turnover, rolling trades, dealer profitability etc.
Responsible for creating/preparing various reports related to Forex:
- Funding requirements management report.
- Liquidity, funding, interest rate reports and distribute to relevant internal and external stakeholders.
- Interest rate sensitivity report.
- Re- pricing – and liquidity mismatch report.
- ALCO reports and ensure variance analysis for inclusion in the Group’s ALCO information pack with guidance from the companies Treasurer.
- Advise relevant parties of ALCO decisions and monitor implementation thereof.
- Provide additional information to the ALCO as and when required.
- Market Risk, FX Margin & Limit Reports.
- KRIs & RSCAs for Forex Risk.
- Monthly Prudential ratios reporting
- Risk Management section of the annual report for submission to Finance (reporting team).
- Regulatory market risk capital for the Forex and Derivatives desk and submit to regulatory team to report to the South African Reserve Bank.
- Any other reporting requirements as requested.
SPECIAL PROJECT AND PROJECT MANAGEMENT
- Perform mathematical data modelling of proposed risk management solutions.
- Perform spreadsheet modelling and analysis of hedging strategies for the Bank’s fixed income, derivative and foreign exchange trading portfolios
- Identify and pursue opportunities for process automation.
- Responsible for the development, revision and implementation of relevant standards and policies and the monitoring of processes on a continuous basis.
- Guide the benchmarking of current processes against industry best practice and re-engineer these processes to enhance efficiency across the organisation.
- Manage the implementation of risk management technology, including off-the-shelf software and homegrown solutions. Draw up project plans and conduct regular progress meetings if needed.
- Provide a steer and input into The Fundamental Review of the Trading Book framework (”FRTB”) in the context of the forex and derivative trading activities.
- Participate in the testing of outputs as part of the FRTB project.
- Evaluate emerging legislation and regulations and provide guidance / input to test the impact of the relevant legislation and/or regulation on the Banks’ capital, liquidity and market risk.
- Work with Head: BB Financial Management and develop a structure and operating model for the Forex Middle Office team.
- Actively participate in the recruitment and selection of new team members.
- Ensure that staff is multi skilled through rotation within the department.
- Ensure that staff is adequately trained and ready for succession planning requirements.
- Supervise, monitor and control the capacity and resources within the unit to ensure an exceptional customer experience whilst driving efficiencies.
- Ensure effective workflow whilst complying with the organisation’s objectives and relevant external statutory body’s rules and regulations.
- Responsible for communicating objectives, contracting key performance areas, conducting regular one-on –one feedback sessions, performance appraisals and contracting development plans with direct reports.
- Responsible for providing staff with technical guidance and support.
- Maintain an open communication channel with direct reports and support staff to foster greater co-operation and teamwork.
- Responsible for operational people management tasks (leave management, disciplinary enquiries, etc.).
- Attend the quarterly Operational Risk committee meeting.
- Attend applicable Banking Association committee, task groups and work group meetings if necessary
- Representing the Bank in various forums where new regulations and reforms are debated by the market
- Provide support and guidance in respect of department related products to internal and external customers within the agreed service level agreement.
Requirements: Qualification and Skill
- The ideal candidate will have a Post Graduate Diploma in Accounting – Financial Accounting with a CFA, FRM or CA (SA)
- Minimum Qualification: Honours Degree in Accounting – Finance or Risk and Compliance
- Exposure to liaising at a senior management level
- 7+ Years Forex Middle Office Risk Management experience (with experience obtained from preferably one of the large traditional banks in South Africa).
- 7+ Years management experience with exposure to liaising at a senior management level
- Leadership experience
- The Basel III Standardised Approach, including knowledge of future developments of Basel rules and guidance
- Banks Act Regulation 43 reporting requirements including Capital Adequacy Ratio, Liquidity Coverage Ratio and Net Stable Funding Ratio requirements
- Basel III rules relating to risk weighting of exposures applicable to banks operating under both the secured and unsecured loan industry
- Banks Act requirements
- Operating with Intermediaries and managing third party risk
- Good understanding and knowledge of accounting principles, current Basel principles and current regulations to the Banks Act.
- SARB (Prudential Authority) Requirements (Supervision and Regulation)
- FSCA and Market Conduct Standards 1,2 and 3
- Assets and Liquidity management
- Enabling Technologies, tools and models required in this field
- IFRS Accounting
- Financial Systems & procedures
- Analytical and financial modelling methods and practices
If you wish to apply for the position please send your CV to Shearidan Rabsch at [email protected]
Please visit www.caglobalint.com for more exciting opportunities.
Managing Consultant – Banking and Finance
CA Global will respond to short-listed candidates only. If you have not had any response in two weeks, please consider your application unsuccessful however your CV will be kept on our database for any other suitable positions.