The role of the credit rating expert is to have a particular focus on the appropriateness of internal credit rating methodologies employed by Just Group, in a second line capacity. This is consistent with the greater analytic justifications for internal ratings and CQS mappings required under SS3/17. The role will have a particular focus on the internal rating methodologies and ratings assigned to restructured Lifetime Mortgages and Commercial Real Estate. The second line role will also challenge credit ratings assigned by the first line, and oversee the first line validation of external managers rating processes and ratings.
By providing an independent perspective on rating methodologies, the Credit Rating Expert can also advise relevant senior stakeholders on the issues and risks associated with assigning credit ratings to complex assets, leading in turn to greater confidence particularly with respect to new assets and asset classes.
The firm risk appetite is to ‘seek’ credit risk exposure through LTM, market and private placements. This is a key focus for future firm activity, it is therefore important that oversight and challenge can be of sufficient expertise, quality and detail to ensure the firm operates within established risk appetites and any risk limits that are in place now and in the future. The financial risk team owns this responsibility but is not currently resourced to deliver this at the level necessary.
The role holder will be expected to play a leading role in monitoring and improving the effectiveness of controls and integrity of the credit risk management processes including the limits framework, stress testing and ongoing monitoring of credit performance.
•Review, challenge and validate internal rating methodologies and assigned ratings
•Develop and maintain an appropriate framework of controls and metrics for identifying, measuring, monitoring and mitigating credit risk.
•Review and independently assess ratings of the portfolio, with a focus on internally rated assets
•Communicate results of work to Credit Committee, ALCO and GRCC including presentations to assist in participants understanding
•Evaluate the potential credit rating of new investments, assessing whether the ratings methodologies and calibrations are appropriate
•Validate line 1 identification and monitoring of credit and ESG trends and issues that may affect internally rated assets.
•Conduct ongoing monitoring of the portfolio to ensure assessments.
•Maintain good relationships with the ratings agencies and other third parties to extract best value from external research and advice and develop further market intelligence.
•Ensure 1st line takes action to remain or move back within credit risk appetite, including tracking of any such actions