Counterparty Credit Risk

Hey guys, 


I just came across the following job related to counterparty credit risk (apologize for copying the whole text - I am not allowed to insert any hyperlinks) 

Key Responsibilities:

  • Manage a global team of In-business risk professionals on various aspects of counterparty risk monitoring and controls
  • Monitor client portfolios to ensure that risks are controlled - primarily credit risk arising from market sensitive exposure and liquidity risk
  • Work with Sales trading and clients to analyze client portfolios, propose counterparty risk limits and work with Credit risk management on getting limits approved
  • Perform daily and weekly risk analysis and reporting on existing client portfolios as well as customized risk analysis on new client portfolios
  • Communicate key findings to senior management and act as the chair for in-business risk forums as appropriate.
  • Work with business managers and In-Business Risk teams on margin model development,  new product approvals and realtime monitoring and controls
  • Put together presentations and documents for internal and external use on various topics including describing the functions of the Risk Group, stress methodologies, and summarizing risk issues.
  • Analyzing control environment including periodic review of the control environment, vetting of new systems, processes, policies and procedures associated and related to market and/or credit risk and ensuring they are in sync with market practices.
  • Develop and utilize risk management tools for the measurement, monitoring and management of exposure and participate in project management of strategic risk infrastructure development.
  • Represent the department to various independent risk teams, auditors and regulatory agencies on issues related to counterparty risk and controls.

Developmental Value:

  • The team is new giving opportunity to expand the role as the function grows.
  • Learn about risk management and Financing products more broadly.
  • Influence the strategic direction of the Bank from a risk management perspective.
  • Build solid market/credit Risk experience as we use cutting-edge risk models and techniques.

Required Knowledge and Experience:

  • Experience with managing market or credit risk OR training in finance, mathematics or quantitative fields
  • Relevant market risk experience across multiples asset classes including rates, equities, credit and commodities
  • Experience in working on large scale risk technology projects
  • Experience leading a team within market or credit risk

Skills:

  • Large scale project management skills spanning risk and technology
  • Development and lead the effort in implementation of class leading risk methodologies, margin models and technology.
  • Strong analytical skills with good attention to detail and a demonstrated aptitude for tackling analytical issues through quantitative modelling and assimilation of data into a working product
  • Ability to work well with cross-functional teams from Business, Credit, Operations and Compliance
  • Strong written and verbal communication skills
  • Sound risk and business judgment
  • Stress testing skills essential, instrument modelling skills desirable.
  • Strong Excel skills ideally incorporating VBA (Visual Basic for Applications)
  • Programming skills in Python, R or other statistical languages is a plus

Education:

  • Bachelor’s/University degree in mathematics, science, finance/economics or a related field required

I am not intending to apply to this job right now but just wanted to understand the level of expertise required in programming to do a reasonable job in such a position. In the job post, it says the following: 

  • Strong Excel skills ideally incorporating VBA (Visual Basic for Applications)
  • Programming skills in Python, R or other statistical languages is a plus
  • Bachelor’s/University degree in mathematics, science, finance/economics or a related field required

Currently, I don't have any programming skills but am inclined to learn the ones mentioned above (VBA, Python, R). Of note, I don't have a computer science or quant academic background. It seems to me that they are not requiring super hardcore programming skills, based on some of the phrases they used  (i.e., "ideally" and "is a plus") and the fact that they don't require an advanced degree in engineering or computer science  

I guess the question is, 1) what is the level of programming skills required to perform at an acceptable level to perform well in such a job and 2) how long would it take to develop such skills assuming that I can commit around 30 minutes to an hour a day to learn. Just trying to understand whether it's worth giving a try and putting in the efforts to learn programming in the first place. My current job only requires intermediate (?) excel skills (e.g., using pivot tables). 


Thanks and would really appreciate any inputs. 



 

OneWordDoge, sorry there are no responses yet. Maybe one of these topics can point you in the right direction:

More suggestions...

I hope those threads give you a bit more insight.

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 
Most Helpful

This is a risk management team. Coding skills are required but not to the level of model development. You need to be really comfortable with data wrangling techniques that’s what the JD says. VBA is needed because you will be looking at traders books and Python is basically the new Excel tool. A combination of business and lite modeling. You can be competent in such a job if you study for 3 months (1hour a day, good materials). Career path would trading, credit portfolio management in finance, and possibly data science if you wish.

 

Thank you very much for your answer, really appreciate it. Now I know that I'd be giving it a try. I am moving into a financial institutions credit risk role. My new role would not require any of the programming skills required in the JD written above but I think this counterparty credit risk role would be a possible career path from my new role after 3-5 years given the capital markets products experience that I would have by then. Are there any materials or books on Python that you can recommend? Are there any good online training courses out there? I think WSO has their own Python course as well.   

 

In terms of recommended materials, I understand different people have different approaches. Some prefer online video courses and some textbooks. I will just take a stab at listing my preferred books. For Python, it's Python for Finance - Analyze Big Financial Data and there's accompanying github repositories. It's intermediate level. For CCR specific, I recommend Jon Gregory the latest version - The xVA Challenge - to be familiar with the terminology and facets that need to be looked at. For general finance, it would be John Hull's options, futures and other derivatives which is standard for business majors.

 

Numquam nulla dolor molestiae sed illo magni. Pariatur sequi rem libero ad consequatur excepturi hic. Voluptatem nam ea voluptas a numquam provident sit. Eos esse repudiandae dignissimos sint perspiciatis quia. Dolorem voluptate occaecati fugit est non dolorem.

Omnis suscipit sint amet placeat corporis. Aliquid doloribus ut laborum unde non. Perferendis error sit qui.

Debitis consequuntur soluta illum rerum laudantium dolores hic repellat. Magni eum voluptatum est nesciunt. Et architecto illo dolores molestias qui consequatur quae. Quo enim et fugiat non et quam. Quidem tempore illum enim modi.

Cupiditate totam non esse. Quae nihil aperiam ut. Dignissimos et nesciunt qui odio provident.

Career Advancement Opportunities

April 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. New 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

April 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

April 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

April 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (87) $260
  • 3rd+ Year Analyst (14) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (205) $159
  • Intern/Summer Analyst (146) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
Betsy Massar's picture
Betsy Massar
99.0
5
CompBanker's picture
CompBanker
98.9
6
GameTheory's picture
GameTheory
98.9
7
kanon's picture
kanon
98.9
8
dosk17's picture
dosk17
98.9
9
Linda Abraham's picture
Linda Abraham
98.8
10
DrApeman's picture
DrApeman
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”