Manager, Capital Stress Testing

ACCA Careers; Bengaluru; On-site; INR 1,200,000 - 1,800,000; Full time

Job summary

Standard Chartered Bank in Bengaluru, India seeks an Individual contributor for Capital/Liquidity Stress Testing to deliver projections for Equity, CET1, LCR, NSFR and survival horizon across stress scenarios. You will work on balance sheet and income statement analysis to derive insights for leadership discussions.

The role involves executing stress-testing models, data extraction, and presenting findings to senior leadership.

Job description

Job Description

• The Capital/Liquidity Stress testing team forms an integral part of the capital adequacy assessment process. The team conducts balance sheet and income statement analysis to come up with projections for Equity, CET1, LCR, NSFR, Survival horizon and and other levels of capital/liquidity metrics, thereby helping to determine the capital/liquidity cushion under various scenarios including economically stress ones. At a PLC level, stress testing exercises are conducted for RPST, BoE, ICAAP. Stress testing exercise is also carried out or supported for markets where the Bank has considerable footprint.
• The position is for an Individual contributor role who would be able to understand concepts well, analyze, come up with findings and present the same to the leadership team to arrive at valuable insights, in addition to performing model execution and data extraction.
• Below further outline tasks and responsibilities that could be expected:
• Deliver on the Balance Sheet & Income Statement projections for the Enterprise-wide Stress Testing (EWST) exercises and accordingly come up with Equity movements and model CET1, LCR, NSFR and survival horizon projections.
• Carry out the movement analysis & narratives for CET1, Tier 1, Total capital metrics
• Carry out analysis on Capital numbers including CET1, Total capital and compare against Basel and reg requirements.
• Carry out the movement analysis on LCR, NSFR, Survival horizon and Trapped liquidity projections.
• Carry out the Severe Liquidity stress test scenarios and analyse projections based on the changes in the P&L and Balance Sheet
• Carry out analysis on Capital numbers including CET1, Total capital and compare against Basel and reg requirements

Job Summary

• The Capital/Liquidity Stress testing team forms an integral part of the capital adequacy assessment process. The team conducts balance sheet and income statement analysis to come up with projections for Equity, CET1, LCR, NSFR, Survival horizon and and other levels of capital/liquidity metrics, thereby helping to determine the capital/liquidity cushion under various scenarios including economically stress ones. At a PLC level, stress testing exercises are conducted for RPST, BoE, ICAAP. Stress testing exercise is also carried out or supported for markets where the Bank has considerable footprint.
• The position is for an Individual contributor role who would be able to understand concepts well, analyze, come up with findings and present the same to the leadership team to arrive at valuable insights, in addition to performing model execution and data extraction.
• Below further outline tasks and responsibilities that could be expected:
• Deliver on the Balance Sheet & Income Statement projections for the Enterprise-wide Stress Testing (EWST) exercises and accordingly come up with Equity movements and model CET1, LCR, NSFR and survival horizon projections.
• Carry out the movement analysis & narratives for CET1, Tier 1, Total capital metrics
• Carry out analysis on Capital numbers including CET1, Total capital and compare against Basel and reg requirements.
• Carry out the movement analysis on LCR, NSFR, Survival horizon and Trapped liquidity projections.
• Carry out the Severe Liquidity stress test scenarios and analyse projections based on the changes in the P&L and Balance Sheet
• Carry out analysis on Capital numbers including CET1, Total capital and compare against Basel and reg requirements

Key Responsibilities

• Ensure compliance to EWST procedures, methodologies, and controls.
• Manage all governance related aspects of the execution of stress testing
• Drive process improvements and best practices for more efficiency and productivity
• Support development and maintenance of underlying models to enhance stress testing methodology.
• Deliver adequate documentation on stress testing methodology subject to management, model validation, audit & regulatory scrutiny.
• Deliver on the operational risk framework for the stress test process.
• Risk Management: Ensure all activity adheres to the Enterprise Risk Management Framework, relevant policies, and standards, with a specific focus on ensuring an effective framework for the management of operational risks as they pertain to the role.
• Processes: The role holder will need to support the establishment and documentation of all processes and effective controls for the hub team in accordance with the broader stress testing team
• Governance: Demonstrate an awareness and understanding of the regulatory framework in which SCB operates, and the regulatory requirements and expectations relevant to the role.
• Deliver ‘effective governance’; capability to challenge colleagues effectively or elevate appropriately; and willingness to work in an open and cooperative manner with all.
• Regulatory & Business Conduct: Display exemplary conduct and live by the SCB’s Values and Code of Conduct.
• Take personal responsibility for embedding the highest standards of ethics, including regulatory and business conduct, across Standard Chartered Bank. This includes understanding and ensuring compliance with, in letter and spirit, all applicable laws, regulations, guidelines and the Group Code of Conduct.

Business

• Stress Testing, as part of Finance, is an independent group function responsible for projecting the financials and capital/liquidity ratios of the entity in question given certain assumptions about Bank’s policies and economic variables. The function plays a critical role in strategic business, regulatory and infrastructure initiatives which forms the Bank’s future.
• Internal Stress Tests: Internal Capital Adequacy Assessment Process (ICAAP), Management Stress Tests (MST) etc.
• Regulatory Stress Tests: HKMA SDST, MAS Stress Test, BOE Stress Test, BOT Stress Test, Reverse Stress Tests etc.
• Climate Risk Stress Tests: A new area of analysis focussing on the impact of climate change on Banking industry
• Driving ‘Digitisation’: Responsible for designing, prototyping, and implementing strategic change initiatives to increase business efficiency of stress testing processes.
• The unit is Performance Driven with an aptitude to meet the expectations of Senior Management & Regulators by living the values of the organization in Doing the Right Thing and Better Together. The Never Settle attitude makes this unit unique in its approach to always be a Future‑Fit organization

Processes

• The role holder will need to support the establishment and documentation of all processes and effective controls for the hub in accordance with the broader stress testing team

Risk Management

• Ensure all activity adheres to the Enterprise Risk Management Framework, relevant policies and standards, with a specific focus on ensuring an effective framework for the management of operational risks as they pertain to the role.

Governance

• Demonstrate an awareness and understanding of the regulatory framework in which the Group operates, and the regulatory requirements and expectations relevant to the role.
• Deliver ‘effective governance’; capability to challenge colleagues effectively, or elevate appropriately; and willingness to work in an open and cooperative manner with all.

Regulatory & Business Conduct

• Display exemplary conduct and live by the Group’s Values and Code of Conduct.
• Take personal responsibility for embedding the highest standards of ethics, including regulatory and business conduct, across Standard Chartered Bank. This includes understanding and ensuring compliance with, in letter and spirit, all applicable laws, regulations, guidelines and the Group Code of Conduct.
• Effectively and collaboratively identify, elevate, mitigate and resolve risk, conduct and compliance matters.

Key stakeholders

• Stress Testing Team
• Group Treasury
• 2nd line of defence
• Business leadership
• Stress Testing Transformation Programme Team
• Key operations and technology partners / vendors

Other Responsibilities

• As delegated by Head of Stress Testing from time