The Chief Risk Officer oversees and manages all aspects of risk within the FundX business.
- Credit risk: Losses from inappropriate credit decisioning
- Portfolio risk: Imbalances between the level of portfolio risk and return
- Fraud risk: Losses from fraudulent applications
- Operational risk: Losses from inappropriate internal controls
- Reputation risk: Negative public or private feedback
- Strategic risk: Loss of value due to inappropriate strategic actions
- Product risk : Losses from inappropriate product features or design
The Chief Risk Officer develops risk policies, processes and procedures to record and monitor all types of risk, identifies new sources of risk or emerging trends, and ensures that, on a whole-of-business level, an appropriate balance exists between risk, pricing and returns.
To achieve this, the Chief Risk Officer establishes and maintains a business wide risk framework to record, measure, assess and proactively manage risk.
The Chief Risk Officer is also a key contributor to strategy, product development, pricing and operational processes.
The primary role of the Chief Risk Officer is to measure, monitor and assess risk at all levels throughout the FundX business. Where the business is unreasonably exposed to risk, the CRO is expected to make recommendations and implement actions to mitigate those risks.
The Chief Risk Officer must also identify and pursue opportunities to improve existing risk practices, and consider new methods and techniques.
The Chief Risk Officer works closely with leadership and technical staff. They may manage the activities of others responsible for operational aspects of the business, but may not have any sales responsibility.
Strategic planning is an important part of the role, since it is the Chief Risk Officer's responsibility to promote a balance between returns and the risk profile.
Specific Responsibilities and Tasks
- Assess and measure credit risk (i.e. probability of default, likelihood of loss) in relation to new customer applications
- Ensure product pricing is consistent with the assessed level of risk
- Ensure the credit assessment model is continually refined and improved for new learnings and customer experience
- Assess and measure credit risk for the loan portfolio as a whole
- Ensure overall portfolio risk is within Board approved parameters
- Ensure overall portfolio returns are consistent with portfolio risk
- Implement policies and procedures to minimize the risk of fraudulent customer applications, including the use of social media tools
- Ensure a minimal overall level of fraud is experienced
- Maintain an overview of the macroeconomic environment for trends or events which influence the risk profile of FundX
- Maintain an overview of the FundX business and new initiatives for their risk implications, and recommend actions to mitigate risk where appropriate
- Review new product and affiliate proposals for their risk implications, and recommend actions to mitigate new risks where appropriate
- Maintain on overview of existing products for risk characteristics, and recommend product modifications to mitigate risk
The performance of the Chief Risk Officer is measured against the following KPls:
- Loans in default %.
- Loan losses %.
- Portfolio risk grading vs return.
- Loan recoveries.
- Fraud instances.
If you would like to apply for the role of Chief Risk Officer for FundX, please send an email to email@example.com with your CV.