Head of Market Risk, CRO function, LCH Ltd

Role Profile:

Team description:

The CRO function is responsible for independently monitoring and assessing all risks in LCH Ltd against the standards set out by the LCH Ltd Board in the Risk Governance Framework and reporting their findings to the LCH Ltd Board, Risk Committee, TSR and Audit Committee.

Specifically, the CRO function is responsible for:

• Establishing and maintaining risk policies for LCH Ltd to define the expected standards for risk management in detail for all enterprise risks (including financial, resilience and corporate risks)

• Establishing and maintaining a framework for monitoring and reporting on business performance against the defined standards;  enforcing standards by challenging the ‘first line’ where necessary  

• Reviewing and approving any new product proposals, new member applications, policy reviews, action closure memoranda, serious incident reviews, issue escalation, new jurisdictions, new collateral requests, model changes and parameter updates via the Executive Risk Committee (ERCo) and its sub-committees the Resilience Committee (ResCo) and the Financial Resources Working Group (ResCo)

• Providing assurance to regulators in the relevant jurisdictions that regulatory standards in relation to Risk Management are being met on an on-going basis 

• The CRO function aims to develop a strong, diverse team of technically skilled, dedicated risk management professionals, to provide exceptional career development opportunities and a stimulating, challenging working environment.
   

Key responsibilities of the role:

The Head of Market Risk is the lead manager within the CRO function for market risk, liquidity risk, investment risk, model risk, procyclicality risk and settlement risk.  The role reports directly to the CRO of LCH Ltd.  The Head of Market Risk acts as advisor to CRO on all issues relating to these risks for all clearing services in LCH Ltd (SwapClear, Listed Rates, ForexClear, RepoClear and EquityClear).

The Head of Market Risk chairs the Financial Risk Working Group (FRWG), a subcommittee of the Executive Risk Committee (ERCo). 

Specific responsibilities include:

• Responsible for monitoring, assessing, reporting and managing market risk, liquidity risk, investment risk, model risk, procyclicality risk and settlement risk across all LCH Ltd business lines

• Quality control (provides challenge) for all first line new product and model and parameter changes.  Chairs FRWG.

• Monitors risk model performance across all services by analysing backtesting and procyclicality statistics

• Manage cycle of model validation assignments and track relevant actions 

• Maintain relevant risk policies (e.g. Financial Resources Adequacy Policy);  regularly review policy wordings and compliance with policies

• Identifying areas needing improvement;  prioritising, setting timelines, tracking and reporting delivery

• Maintains Economic Risk Capital Model and reporting

• Manages a team of circa 8 risk professionals;  responsible for allocating responsibilities, setting challenging objectives, learning and development

• Alongside other senior risk managers in the CRO function, the Head of Market Risk will be expected to represent LCH Ltd externally, interacting with regulators, members and clients.  They will be expected to provide reassurance on LCH’s risk management standards; to discuss emerging trends and new initiatives; to participate in industry debates and to advocate for LCH positions.  Where relevant, they will be expected to attend industry forums and to enhance LCH’s reputation for thought leadership and risk management excellence.

Key behaviours and skills required to be successful in the role:

• - The candidate should have extensive experience working in a risk management function within a financial services organisation

• - The candidate will be expected to have detailed knowledge and understanding of the derivatives clearing business (experience of working in a CCP would be a definite plus)

• - Some management and leadership experience will also be expected

• Technical skills

• - The candidate should have deep domain expertise, including extensive technical knowledge of risk management techniques such as Value at Risk and Stress Testing

• - The candidate should have a strong organisational focus with experience of managing a complex set of deliverables with limited resources

• Soft skills

• - The candidate will require good collaboration and negotiation skills to be successful is the role will interact with other departments, most notably the first line risk teams

• - The candidate will require excellent interpersonal skills, mindful of sensitivities but with a firm touch where necessary

• - The candidate will require excellent communication skills along with professional demeanor and strong gravitas – must be able to represent the CRO function internally and externally including at a senior / Board level

• - Proactive, pragmatic, and considered approach with strong leadership skills

• Education:

• - The candidate should be educated to at least degree level, preferably in a numerical, scientific or financial discipline (post-graduate financial or risk qualifications would be a further plus)
   

Diversity & Inclusion

People are at the heart of what we do and drive the success of our business.  Our colleagues thrive personally and professionally through our shared values of Integrity, Partnership, Innovation and Excellence are at the core of our culture.  We embrace diversity and actively seek to attract people with unique backgrounds and perspectives.  We are always looking at ways to become more agile so we meet the needs of our teams and customers. We believe that an inclusive collaborative workplace is pivotal to our success and supports the potential and growth of all colleagues at LSEG.
 

About LCH

• LCH is a leading multi-asset class and multi-national clearing house, serving major exchanges and trading platforms as well as a range of OTC markets.

• LCH’s world-class risk management framework provides exceptional levels of protection to international markets, as has been proven through the management of past defaults. As demand for robust clearing services continues to grow, LCH is committed to achieving the highest standards of risk management across all asset classes cleared.

• LCH is majority owned by London Stock Exchange Group (LSE.L), a diversified international exchange group that sits at the heart of the world's financial community. 
   

About Us

London Stock Exchange Group (LSE.L) is a diversified international market infrastructure and capital markets business sitting at the heart of the world's financial community. The Group can trace its history back to 1698.

The Group operates a broad range of international equity, bond and derivatives markets, including London Stock Exchange; Borsa Italiana; MTS, Europe's leading fixed income market; and Turquoise, a pan-European equities MTF. It is also home to one of the world’s leading growth markets for SMEs, AIM. Through its platforms, the Group offers international business and investors unrivalled access to Europe's capital markets.

Post trade and risk management services are a significant part of the Group’s business operations. In addition to majority ownership of multi-asset global CCP operator, LCH Group, LSEG operates CC&G, the Italian clearing house; Monte Titoli, the T2S-ready European settlement business; and globeSettle, the Group’s newly established CSD based in Luxembourg.

The Group is a global leader in indexing and analytic solutions. FTSE Russell offers thousands of indexes that measure and benchmark markets around the world.  The Group also provides customers with an extensive range of real time and reference data products, including SEDOL, UnaVista, and RNS.

London Stock Exchange Group is a leading developer of high performance trading platforms and capital markets software for customers around the world. In addition to the Group’s own markets, over 35 other organisations and exchanges use the Group’s MillenniumIT trading, surveillance and post trade technology.

Headquartered in London, with significant operations in North America, Italy, France and Sri Lanka, the Group employs approximately 4,700 people.
 

Values & Behaviours

• Integrity:  My word is my bond. Integrity underpins all that we do – from unshakable commitment to building and supporting global markets based on transparency and trust, to every transaction across our business with each and every stakeholder.  We are a source of enduring confidence in the financial system, so when we say that our work is our bond – we mean it.

• Partnership:  We collaborate to succeed. We pride ourselves on working together as proactive partners, building positive relationships with our colleagues, customers, investors, regulators, governments and shareholders – for our mutual success and the benefit of all.

• Innovation:  We nurture new ideas. We are ambitious and forward-looking – a pioneering Group of market innovators, driven by fresh thinking that has kept us ahead of change. We prudently and proactively invest to make sure that out markets and services constantly moving forward, developing and evolving with advances in technology.

• Excellence:  We are committed to quality. We have a fundamental commitment to developing talented teams who deliver to the highest standards in all that we do.  By collaborating together, we will sustain industry-leading levels of excellence, setting the benchmarks that inspire ever better performance.

LSEG is a leading global financial markets infrastructure and data provider. Our purpose is driving financial stability, empowering economies and enabling customers to create sustainable growth.

Our purpose is the foundation on which our culture is built. Our values of Integrity, Partnership, Excellence and Change underpin our purpose and set the standard for everything we do, every day. They go to the heart of who we are and guide our decision making and everyday actions.

Working with us means that you will be part of a dynamic organisation of 25,000 people across 65 countries. However, we will value your individuality and enable you to bring your true self to work so you can help enrich our diverse workforce. You will be part of a collaborative and creative culture where we encourage new ideas and are committed to sustainability across our global business. You will experience the critical role we have in helping to re-engineer the financial ecosystem to support and drive sustainable economic growth. Together, we are aiming to achieve this growth by accelerating the just transition to net zero, enabling growth of the green economy and creating inclusive economic opportunity.

LSEG offers a range of tailored benefits and support, including healthcare, retirement planning, paid volunteering days and wellbeing initiatives.

We are proud to be an equal opportunities employer. This means that we do not discriminate on the basis of anyone’s race, religion, colour, national origin, gender, sexual orientation, gender identity, gender expression, age, marital status, veteran status, pregnancy or disability, or any other basis protected under applicable law. Conforming with applicable law, we can reasonably accommodate applicants' and employees' religious practices and beliefs, as well as mental health or physical disability needs.

Please take a moment to read this privacy notice carefully, as it describes what personal information London Stock Exchange Group (LSEG) (we) may hold about you, what it’s used for, and how it’s obtained, your rights and how to contact us as a data subject.

If you are submitting as a Recruitment Agency Partner, it is essential and your responsibility to ensure that candidates applying to LSEG are aware of this privacy notice.