A comprehensive risk management framework is required to address credit, market, liquidity, operational, and technology risks within an organization.
Key Responsibilities
* Risk Assessments: Conduct prudential and capital risk assessments, including stress testing, scenario analysis, capital adequacy evaluations, and regulatory-mandated reviews.
* Regulatory Disclosures: Prepare, validate, and support all regulatory disclosures required of financial institutions and virtual asset service providers (VASPs), ensuring accuracy and timely submission.
Margin-Account Risk Oversight:
1. Lead the governance and oversight of margin-account operations, including establishing risk policies for margin lending and virtual asset collateral.
2. Define and periodically review maximum LTV ratios and haircut methodologies.
3. Monitor collateral valuation, capital add-ons, and counterparty exposures.
4. Evaluate adherence to client and institutional exposure limits, capital buffers, and net-worth thresholds.
5. Continuously monitor key risk indicators (KRIs) across business functions, escalating breaches or deviations to senior management and the Board with clear remediation plans.
6. Operate as an independent second-line function, maintaining objectivity from commercial and trading activities while collaborating closely with Compliance, Finance, Operations, and Technology.
7. Promote a strong risk-aware culture by supporting ongoing training, communication, and enhancements to risk methodologies, models, and documentation.