Economic Research Role - BFSI

Economic Research

- The role is for a specialist economist to co-ordinate the review, challenge and documentation of IFRS9, and the various stress testing scenarios deployed across the region.

- Economic projections and analysis are widely used by Risk and Finance functions. Key areas for which economic data are required are loan loss provisioning (IFRS9), Stress Testing and Planning.

- IFRS 9 is an accounting standard which requires expected credit loss calculations of a financial instrument to be derived using information on past events, current conditions and forecasts of future economic conditions. Forward Economic Guidance (FEG) is the area of IFRS 9 that deals with the creation of alternative economic scenarios and probabilities that drive the impairment calculation.

- Stress testing is a vital component in assessing the bank's vulnerabilities, determining capital adequacy and thereby the resilience of the bank through improved risk and capital management. Stress testing is a strategic and regulatory priority with ever increasing demands.

- Economists within Group Risk play an important role in supporting internal bank processes that require economic forecasts and projections of alternative scenarios.

Role Summary :

Group Risk Economics has a vacancy in its team for an economist who will play a pivotal role in scenario review and governance. These range from established processes, such as IFRS9 and Stress Testing and Planning as well as new areas of focus, such as Climate Change.

What you'll do:

- Ensure timely production and dissemination of the team's documentation, for IFRS9 and stress testing.

- Develop and maintain documents describing scenarios and risks. Work to consistent quality standards and produce regular output.

- Work within the existing governance and reporting frameworks and support the maintenance of a strong controls environment.

- Monitor the economic environment and provide regular reporting of key economic indicators. Monitor emerging risks and fast moving events and provide appropriate written commentary.

- Work with regional economists and country teams to identify key risk themes relevant to scenario production.

- Review and challenge model forecasts to ensure economically coherent paths for variables across different scenarios.

- Build regression models to support climate scenario review and challenge process and in projection of macro-economic variable paths.

- Communicate with key stakeholders including governance committees, regional and country CROs and CFOs, explaining economic scenarios and addressing arising issues. Deliver a high standard of discussion around global economic risks and their transmission. Be able to rapidly escalate as required and provide analysis at short notice during times of significant economic development e.g. turning points in the business cycle.

- Work closely with HSBC's external advisers on macroeconomics, explaining requirements, designing approaches to perform scenario expansion and monitoring quality.