Vice President, Hedge Fund Risk

Job Description

Description of the Business Line or Department

• The role of RISQ/RMA/HPC is to provide risk control services for hedge fund and mutual fund counterparties and investments. In particular, it performs risk assessment, mitigation, approval, and monitoring processes for the Core Businesses at SG Group thattransact with, clear for, invest in, or take collateral consisting of hedge funds. And performs LOD2 risk duties for regulated funds. The risk types that are within HPCs remit are credit, liquidity impairment and reputation risk resulting in credit losses.

• Whilst RISQ/RMA/HPC is a service provider, its client is SG and by extension SGs shareholders. As such, (like all departments within the RISQ Division) it adheres to the philosophy of complete independence from commercial activities. In particular, itis a control function, not a support function to the business.

Summary of the key purposes of the role

• The incumbent will contribute to/manage/co-ordinate relevant CCR related transversal projects and regular tasks.
• The role requires a person with strong knowledge and experience in risks associated with trading with hedge funds and mutual funds, encompassing both knowledge of the funds and all relevant products and business lines involved.
• The role requires the ability to form, defend, and enforce a risk judgement based upon an independent opinion in a context that may require a rapid conclusion under pressure. This includes modifying requests from Front Office to better align transactionsto risk appetite and business appropriateness while maintaining the economic rationale for both parties to deal.

Summary of responsibilitiesThe incumbent will carry out core HPC across related counterparty types responsibilities as described below:

• Assessment - Performing hedge fund due diligence on a portfolio of funds assigned, including the review of relevant documentation, analysing investment and operational risks, performing background checks, arranging and attending on-sitedue diligence meetings and drafting well-written, cogent, due diligence documents. Assist in opining on transactions and associated risks.
• Approval - recommending approval of specific relevant credit files, requests and limits and the associated credit ratings. Approving specific one-off transactions as required (within guidelines) in the course of everyday business. Facilitatingthe approval of files that are to be escalated further.
• Mitigation - Enforcing procedures designed to mitigate against losses in the event that a counterparty defaults, including assisting in negotiating credit terms of legal documents (e.g. ISDA ATEs), negotiating and opining on IndependentAmounts and margin requirements.
• Monitoring - Maintaining up to date risk information and the ongoing monitoring of hedge fund performance and credit worthiness. Monitoring and managing risk exposures across multiple metrics in accordance with defined risk appetite. LOD2follow-up on limit and policy breaches.

• Transversal - The incumbent will also contribute to/manage/co-ordinate relevant projects, as assigned, supporting the transformation of RISQ RMA HPC and the development of Risk UK, particularly in relation to CCR management processes andprocedures (aligned with teams Roadmap targets).
• The incumbent would be expected to help improve the skills of other individuals within the HPC team, facilitate their peak performance, and help them become ready to take greater responsibility.
• Act to ensure that front office requests are addressed appropriately and ensure that the prudent level of risk appetite set by senior management is kept in force to protect the Banks capital.

Competencies

• Preferably experience in hedge fund credit or investment risk
• Experience reading and understanding detailed covenants and clauses in legal documentation such as ISDAs, GMRAs, GTBs, term sheets, prospectuses etc.
• Experience managing a team of professionals a strong advantage

• Good knowledge of hedge fund industry in Europe.
• Knowledge of OTC derivative products and drivers of associated risks.
• Knowledge of listed derivative products and drivers of associated risks.
• Some knowledge of structured products, including repacks, CPPI, leveraged facilities, options on hedge funds, and prepaid forward transactions would be advantageous.
• Good analytical/statistics skills; the person should understand means, standard deviations, correlation, normal distributions, sampling error, and basic performance statistics for the fund industry.
• Intermediate to advance Excel, database, and Word skills highly desirable.
• Self-starter able to meet deadlines and work independently as well as contribute to HPC team goals when required.
• Good communication skills
• Articulate orally and in written form.
• Be comfortable meeting with very experienced hedge fund managers in person, be presentable and respectful.