Job Description

31^st March, 2023

Employee

CLS helps clients navigate the changing FX marketplace – reducing risk and creating efficiencies. Our extensive network and deep market intelligence enable CLS specialists to lead the development of standardized solutions to real market problems. Our innovative, forward-looking products make the trading process faster, easier, safer

and more cost-effective – empowering our clients’ success.

Functional title

Systemic Risk Manager

Location

London

Corporate title

Systemic Risk Manager

Report to

Head of Systemic Risk

Corporate Level

Level 3

No. of direct reports

0

Department

UK Risk Management

Job purpose

Systemic Risk in CLS is defined as Impact of an internal breakdown of infrastructure/ processes, and/or the risk that the impact of the failure of a participant to meet its obligations, may spread to other participants or markets, leading to disruption, or degradation of the effectiveness and/or efficiency of the intermediation function, significantly threatening the stability of, or leading to a loss of confidence in, broader financial markets and the real economy.

The Systemic Risk Manager is a member of CLS’ Systemic Risk office that has been created to reflect CLS’ recognition of the critical role it plays as a Designated Financial Market Utility (‘DFMU’) and its role in the ecosystem to identify, measure, monitor and escalate potential systemic risks. The jobholder will have a pivotal role in this team by formalizing and establishing the systemic risk framework, its processes, reporting and engagement model with the external stakeholders and ecosystem participants. These include but are not limited to Settlement Members, Central Banks, IBM, SWIFT, Business Partners, Nostro Agents, Liquidity Providers, Third Parties, Global FMIs and Non-settlement service participants.

Essential Function / major duties and responsibilities of the job

Strategic

• Supports the CRO and Head of Systemic Risk (and leads where applicable) in the on-going risk dialogue with the external stakeholders and ecosystem participants

• Identifies emerging systemic risks and develops mitigating actions in partnership with internal and external subject matter experts:

- Provides thought leadership in developing industry wide solutions to address systemic risk issues that include but are not limited to funding, liquidity, resilience, failure management, recovery & resolution

• Provides input to risk assessments for new and existing products and services of CLS, and the impact to the ecosystem

• Contributes to the development of white papers and other educational materials on systemic risk issues

• Identifies opportunities for process improvements to deliver increasing operational efficiencies

• Interfaces with key internal stakeholders and business units (Sales, Product, Operations and Legal) and Senior Management Committees

Operational

• Facilitates and frequently leads interfacing with external stakeholders to establish and communicate risk management policies, processes, risk appetite and limits

- Develops risk bilateral schedule in collaboration with Product and Sales

- Develops material in conjunction with internal stakeholders to incorporate new and emerging risk themes and the assessment of the risk footprint of the external stakeholder in CLS

• Development of analytics and reporting of systemic risk metrics that include but are not limited to In/Out swap capacity, Nostro concentration, member incidents, third party activity concentration, pay in call trials

• Ensures that systems enhancements, applications, models and algorithms are implemented to comply with the risk regime of CLS, and the assessment of the corresponding impacts to the ecosystem

• Works with external stakeholders and internal business units to establish, maintain and continuously improve risk management capabilities, tool and techniques

• Facilitates and contributes to CLS’ Enterprise Risk Management framework and reporting

• Enhance and maintain a system of internal controls as expected from a DFMU

• When applicable, provide support to the Settlement Risk team in the following activities:

- Monitoring and oversight from 2LoD of the CLSSettlement and other services

- Assisting with the monitoring of FX volatility and relevant market developments

- Development and distribution of settlement risk reports

- Assisting in the development of the crisis management framework, documentation and education

Leadership

• The role has no line management responsibility.

• Provide leadership in the enhancement of CLS’ Systemic Risk framework and take initiative in driving engagement and actions with ecosystem participants

Experience / essential and desired for successful job performance

• 5-7 years’ experience in the financial services sector covering Treasury, Liquidity Risk, Balance Sheet / Asset Liability Management, Operational Risk or Credit Risk.

• Experience in establishing framework and on-going process in accordance with industry best practices

• Excellent communication and presentation skills. Ability to articulate effectively to audience with varying levels of subject matter expertise

• Some experience directly engaging with and interacting with regulators, either from a policy or supervisory perspective.

• Ability to work constructively and flexibly in a small team environment, and to assist at the direction of management in tasks that are not the immediate responsibility of the department.

• Have professional presentation skills, including excellent writing and public speaking capabilities; proficiency in standard PC programs (Excel, PowerPoint, Word).

• Some knowledge of PFMI principles and REG HH standards

Qualifications / certifications

• University Degree (B.A / B.S) – essential

• Post Graduate Degree– desirable

Knowledge, skills and abilities / competencies required for successful job performance

In order to carry out the duties of the position effectively, the individual will need to possess the following attributes:

· Collaboration and communication

· Judgement and decision making

· Teamwork & Professionalism

· Ability to diagnose/define the issue at hand and identify information/data required to perform the necessary analysis.

· Ability to work independently without close supervision with strong discipline to quality review own analysis/results for accuracy and theoretical soundness.

· Ability to communicate and explain technical analysis/findings in clear and simple manner.

· Ability to multi-task, prioritise multiple projects, and work under pressure.

· Take ownership of tasks and follow through to completion.

Success factors / ‘How’. Personal characteristics contributing to an individual’s ability to excel in the position

· Takes personal responsibility and accountability for solving Systemic Risk related issues in order to meet standards of the organisation and external stakeholders.

· Identifies and appropriately manages/escalates potential risks.

· Makes decisions that have moderate and at times high impact within a function, producing positive or negative effect for efficiencies, delays, and contribute to financial gain or expense.

· Drives innovative solutions that contribute to the success of the department and/or viability of the organization.

· Delivers, directs, and facilitates communication within CLS and amongst settlement members, RTGS operators, third parties, global FMIs and other ecosystem participants, where applicable. Provides thought leadership to develop industry solutions

· Builds strong relationships across the organization as well as across external stakeholders

· Drives teamwork and cooperation with internal and external stakeholders to arrive at consensus driven decisions.

· Demonstrates the CLS values, superior professionalism and ethical conduct.

· Adapts to unexpected changes in circumstances and re-prioritises the team's approach and activities.

· Plans and prioritises, establishing a course of action leading to successful achievement of the team's objectives.