Head - National Risk Manager - Unsecured

Job Context :

They are looking at people from digital finance companies like Neogrowth, LenkingKart etc who are involved in program based credit underwriting.

Key Aspects :

- To ensure institutionalize the approval process for BIL and PIL proposals and ensure its seamless adoption by engaging with the sales teams to receive adequate documentation/ information for review and analysis

- To work towards continuous improvement of credit approval process in order to meet dynamic business and regulatory needs

- To monitor key initiatives and MIS with the sales team and institute mechanisms for complete safety of financed amount and timely regularization of margin shortfall

Key Challenges :

The major challenges to this profile include :

- Data and information availability for exhaustive credit appraisals

- Ensuring faster TATs for approval process

- Ensuring timely and effective MIS reporting

- Coordinating in a seamless manner with multiple internal and external entities to enable effective underwriting that balances business risk and ambitions

- Proactive monitoring and identification of risks in a dynamic and fast paced business context and regularization of margin shortfalls.

Enabling Skill Sets & Qualifications :

- Critical skills required are strong analytical acumen, evaluation skills, detail orientation & decision making skills, strategic orientation and team management skills

- Education & experience required for this profile is a Chartered Accountant or an MBA with minimum 5 years of experience in the credit and risk functions of Banks / NBFCs, with exposure to credit approval authority in the previous role

Principal Accountabilities :

1) Credit Underwriting Management :

- Undertake analysis of the credit proposal based on predetermined criteria and analyze market information, current macroeconomic scenario, current portfolio concentration, etc

- Make decision proposals within delegated authority

- Review the proposals and recommend those proposals beyond the delegated authority to Credit Committee.

- Evaluate new credit proposals / review existing credit exposures with a view to bring out the industry, business, financial, management and facility structure risk.

- Highlight the other credit risks and mitigation actions to take decision / facilitate the approving authority to take decision on the credit proposal.

- Develop formats and norms for approval, ensure their ratification within the team and from approval authorities in the system and institutionalize the prescribed process

- Share the broad level analysis for not considering the given proposal with the sales team as a learning from future sourcing perspective

- Identify risks and suggest measures to mitigate risks to ensure work-ability of the loan proposals

- Liaise with the credit committee for closing the approval process

- Ensure prompt resolution/ explanation of queries raised by sanctioning authorities

- Recommend delegation authority to ZCMs to ensure faster TAT for parameterized proposals.

- Work closely with the collection and legal to take action against defaulting parties

2) Process Improvements :

- Provide inputs and suggest amendments for various lending norms like Risk Matrix, Interest Rate Policy, Credit Authorization Matrix, Risk Universe, Processes keeping the current regulatory and compliance environment in mind

- Undertake improvements in approval notes and other processes to meet dynamic market environment and needs of new customer segments

- Deploy effective processes and mechanisms to ensure high quality TATs for validating lending proposals & share the same with all concerned stakeholders

3) Portfolio Management :

- To monitor the unsecured business portfolio performance by continuous analysis of fundamentals, review of the ratings, analysis of the covenant and evaluation of the industry performance in that sector

- Devise analytical tools to measure the portfolio health from various angles and highlight - early warning- signals

- Review the covenant of loan proposals at frequent intervals and undertake action for serious deviations

- Review reports and analytics on repayment schedules, covenant monitoring, modification in terms and loan sanction, etc

- Protect from potential loss on the credit portfolio by detecting early warning signals of deteriorating risks and advising these to the Relationship Managers and Senior Management.

- Formulate strategies to reduce exposures where the credit risk has enhanced including complete recovery before the credit deteriorates to non-performing category

4) Cross Functional Coordination :

- Communicate the expected credit standards by engaging with the channel partners, sales teams and other distributors in understanding the proposals submitted and extracting the relevant supporting information

- Oversee communication cascades to the sales teams on the broad parameters for validating lending proposals, provide regular training to RMs for the same

- Ensure document execution from RMs and the files are up to date

- Conduct periodic review of client outstanding & regularization of margins to reduce NPA in co- ordination with the risk department and RMs

- Facilitate the audits for the unsecured business and ensure that all details in the BIL & PIL portfolio are completed to the satisfaction of the auditors. Also include the learning and recommendations from the audit into the credit / risk appraisal processes

- Hold regular reviews of the portfolio with the Risk Management Committee, CEO and Group CEO

5) Reporting, Review & MIS :

- Ensure MIS templates are designed to capture relevant data and key parameters, performance updates, interest reset changes etc are analysed and highlighted to all concerned

- Monitor the status of all important initiatives with the RMs and support them with closures

- Review and provide inputs for sales reports and budget variations

- Review the delegation of authority exercised by ZCMs

6) Team Management :

- Provide the team with best-in-class knowledge on selection norms, new ways of proposal analysis and concepts

- Ensure that the team stays abreast with all the latest developments in the unsecured lending space

- Nominate teams for product, behavioural & negotiation trainings and work on self development initiatives