As a Market and Liquidity Risk Officer monitors and manages financial exposures from market price shifts, interest rate changes, and funding shortages in a bank or financial institution.
Key Responsibilities
- Risk Monitoring: Measure and report market and liquidity risks across trading and banking books using metrics like Value at Risk (VaR), Liquidity Coverage Ratio (LCR), and Net Stable Funding Ratio (NSFR).
- Stress Testing: Run stress scenarios and simulations to test balance sheet resilience under adverse economic conditions.
- IRRBB Management: Track Interest Rate Risk in the Banking Book (IRRBB), including Earnings at Risk (EaR) and Economic Value of Equity (EVE).
- Policy Compliance: Ensure portfolio activities align with the company's risk appetite and local regulatory frameworks.
- Stakeholder Reporting: Prepare risk analysis reports for senior management, committees (like ALCO), and regulators. [
Qualifications & Requirements
- Education: Bachelor's degree in Finance, Economics, Accounting, Mathematics, Statistics, or a related field. A professional certification like the Financial Risk Manager (FRM) is a strong advantage.
