Head - Risk Management (Balance Sheet & Climate Change Risk)

Hong Leong Bank; Malaysia; On-site; MYR 250,000 - 450,000; Full time

Job summary

Hong Leong Bank is seeking a Head of Balance Sheet Risk to lead the bank's balance sheet risk strategy and governance. The role requires directing liquidity risk, ICAAP, and IRRBB disciplines while driving climate risk integration and robust stress testing.

The incumbent will ensure regulatory compliance and provide strategic risk insights to senior management and the board. The position emphasizes strong leadership, cross-functional collaboration, and the ability to translate complex risk

Qualifications

• Bachelor's degree or higher in finance, banking, or a related field.
• Proven track record in balance sheet risk management and financial risk disciplines.
• Strong communication and collaboration with senior stakeholders.

Responsibilities

• Monitor and manage liquidity risk, IRRBB, ICAAP, and climate risk across the balance sheet.
• Embed stress testing and Contingency Funding Plan simulations for resilience.
• Prepare regulatory reporting and management insights for senior leadership and the board.

Skills

Leadership

Risk management

Stakeholder communication

Regulatory compliance

Stress testing

Education

Bachelor's degree or higher in finance / banking

Tools

Regulatory reporting systems

Job description

Overview

The Head of Balance Sheet Risk aligns the Bank's balance sheet risk management with overall risk strategy and appetite. Leading the identification and monitoring of risks ensures compliance with internal limits and strategic goals. Core focus areas include enhancing reporting, overseeing regulatory compliance, and developing a robust ICAAP stress test program. Proactively managing balance sheet risks and fostering strong stakeholder collaboration contributes significantly to the Bank's resilience and strategic positioning.

Functional (job responsibilities)

This function is integral to ensure the monitoring and management of the Bank’s balance sheet risk covering liquidity risk, IRRBB, ICAAP, and Climate Risk. The responsibilities include:

• Liquidity Risk Management Formulate, maintain, and continuously enhance policies, frameworks, and SOPs for Liquidity Risk in alignment with the Bank’s Risk Appetite Statement (RAS) and regulatory guidelines. Oversee the identification, measurement, and active monitoring of the Bank’s liquidity profile, structural funding positions, and interest rate exposure against internal limits and regulatory benchmarks. Collaborate closely with relevant internal stakeholders to align liquidity and balance sheet risk strategies with business objectives. Design and execute robust liquidity stress-testing programs. Lead Contingency Funding Plan simulations to test and ensure balance sheet capacity during liquidity crises. Ensure the integrity and accuracy of liquidity-related regulatory reporting. Provide actionable insights and reporting to Senior Management and Board of Directors.
• ICAAP & Stress Testing Embed the ICAAP and RAS through banks’ strategic-decision making process and ensure the linkage between RAS/ICAAP and other key strategic processes (strategy, budget) Perform risk identification material assessment (risk inventory, materiality assessment framework, risk mitigation, linkage with RAS, ICAAP, and stress tests) Execute stress test models for the entire balance sheet and liquidity requirements, considering all different dimensions -segment, geographies and products -of the bank Work alongside business stakeholders to develop, understand, and translate stress parameters into the final balance sheet projections and liquidity metrics Analyze and present results in a concise yet informative manner to Senior Management and Board of Directors Produce qualitative write-ups commenting on the bank's capital and liquidity position in various stress scenarios Produce final ICAAP pack for regulatory submissions Support documentation of stress test models methodology, ensuring it is in compliance with internal governance standards and regulatory requirements
• Climate Change Risk Support the Bank’s Climate Risk strategy, driving policies, risk measurement methodologies, and integration of physical and transition risk assessments across all business lines. Oversee compliance with climate-related frameworks and requirements set by Bank Negara Malaysia, the Securities Commission Malaysia, Bursa Malaysia, and relevant regulatory bodies. Conduct research and keep abreast of developments within the area of climate risk to enable effective identification, tracking and reporting of climate risk faced by the Bank. In addition, utilize this information to support development of proposals for the Bank’s climate risk strategies. Prepare periodic climate risk reports to appraise Management and Board Committees of activities related to management of climate-related risk (this includes Physical and Transition Risks). To act as a liaison for climate-related queries from business and other stakeholders when required.

Managerial (team/group responsibilities)

Ensure risk management priorities are reflected in the company's strategic plans. Effective leadership skills in driving objectives from within the team and Group Risk division. Guide team members to continuously upskill expertise to consistently deliver high quality work. Ensure equitable and efficient work distribution amongst team members for effective operational continuity. Implement succession planning.

Managerial (team/group responsibilities)

Ensure risk management priorities are reflected in the company's strategic plans. Effective leadership skills in driving objectives from within the team and Group Risk division. Guide team members to continuously upskill expertise to consistently deliver high quality work. Ensure equitable and efficient work distribution amongst team members for effective operational continuity. Implement succession planning.

Jobholder Requirements

• Education/Qualification Bachelor's degree or higher.
• Minimum 10 years of relevant experience in the banking/finance/investment industry with at least 3 years of experience in the middle management level (1-down or maximum 2-down from C-Suite) in the areas of Balance Sheet, Liquidity / IRRBB and/or compliance.
• Member of a locally/internally recognized risk management professional body is preferable.
• Experience Demonstrated track record as a business partner in striking balance between risk and business.
• Effective integration of risk frameworks and methodologies into the Bank’s overall business strategy.
• Strong knowledge of liquidity risk management and ICAAP including BNM regulations, banking practices and procedures.
• Demonstrated ability to effectively communicate, both orally and in writing, through all levels of the organization.
• Proven leadership with strong ability to organize and plan strategically in the execution of complex, grey and challenging situations/assignments.
• Ability to handle and manage highly complex factors in risk analysis and financial modelling.
• Totally conversant with broad and enterprise aspects of banking as credit, liquidity, sustainability and capital related risks cannot operate in isolation to other areas of banking.
• Skilled in conducting scenario analysis and stress testing exercises to assess the bank’s resilience to adverse events by simulating various scenarios and their impact to the bank’s financial stability.

About Hong Leong Bank

We are a leading financial institution in Malaysia backed by a century of entrepreneurial heritage. Providing comprehensive financial services guided by a Digital-at-the-Core ethos has earned us industry recognition and accolades for our innovative approach in making banking simpler and more effortless for our customers. Our digital and physical offerings span across a vast nationwide network in Malaysia, strengthened with an expanding regional presence in Singapore, Hong Kong, Vietnam, Cambodia, and China. We seek to strike a balance between diversity, inclusion and merit to achieve our mission of infusing diversity in thinking and skillsets into our organisation. Candidates are assessed based on merit and potential, in line with our mission to attract and recruit the best talent available. Expanding on our “Digital at the Core” ethos, we are progressively digitising the employee journey and experience to provide a strong foundation for our people to drive life-long learning, achieve their career aspirations and grow talent from within our organisation.

Hong Leong Bank (“HLB”) stands proudly as a leading financial services institution based in Malaysia, providing a wide range of comprehensive and innovative financial solutions across the region. These services are delivered through both digital and traditional means, via online and mobile banking, as well as our digital branch concept to provide customers with an efficient and seamless experience aided by technology. As the service and financial landscape changes rapidly with the ever-increasing use of technology, staying attuned to customers needs and desires becomes even more critical to HLB’s operations. To stay ahead of these dynamic changes, the Bank has adopted the approach of reimagining banking by embedding digital considerations and customer centricity in every aspect of our operations, from products and services as well as customer care and engagement. HLB’s ethos of being Digital-At-The-Core powered by customers-at-the-forefront will continue to lead us to innovate offerings in line with our aspiration of being a highly digital and innovative financial services organization.