Head of Credit Risk

📋 Description

• • **Lead the Establishment of a State-of-the-Art Credit Risk Function:** Spearhead the creation of an independent, second-line credit risk function from the ground up. This critical role will be instrumental in identifying and surfacing risks at the opportune moments, thereby facilitating Addi's transition to a fully regulated operational environment in Colombia.
• • **Ensure Adherence to Risk Appetite:** Maintain credit activity within the Board-approved risk appetite through robust partnerships with the first line of defense and by providing constructive, data-driven challenges.
• • **Develop and Implement a Comprehensive Credit Risk Governance Framework:** Design and establish a holistic Credit Risk Management Framework. This framework will be meticulously aligned with Addi's defined risk appetite, its established 3 Lines of Defense (3LoD) model, and the forthcoming regulatory requirements mandated by the Superintendencia Financiera de Colombia (SFC).
• • **Orchestrate Regulatory Transition and 1st/2nd Line Delineation:** Develop a clear and effective operating model for both the first and second lines of defense. This model will build upon the existing strengths and successes of Addi's current lending business, ensuring a seamless transition from unregulated to regulated credit operations. You will act as a trusted change partner to the first line, while simultaneously building out a lean, targeted, and highly effective second-line function.
• • **Define and Maintain Credit Risk Appetite:** Establish robust quantitative and qualitative credit risk appetite statements. These statements will be underpinned by measurable metrics, including adherence to SFC risk appetite regulations, risk capital budgets, portfolio risk economics, early warning thresholds, concentration limits, and stress loss sensitivity. You will be responsible for monitoring and reporting the portfolio's position against these appetite metrics on a monthly basis to the Chief Risk Officer (CRO), the Risk Committee, and the Board.
• • **Conduct Independent Assessment and Challenge of Credit Decisions:** Perform periodic, independent reviews of underwriting policies, credit models, portfolio strategies, and all new initiatives. Deliver formal challenge reports to the CRO and relevant governance bodies, ensuring strict alignment with the established risk appetite.
• • **Build and Govern Independent Model Risk Management and Validation:** Establish a comprehensive model risk management framework that encompasses all credit-related decision models. Define appropriate delineations between the first and second lines of defense in close collaboration with key stakeholders. Implement rigorous validation, back-testing, and performance monitoring processes that align with applicable regulatory expectations regarding the segregation of duties.
• • **Strengthen Portfolio Stress Testing and Scenario Analysis:** Design and execute sophisticated stress testing programs to rigorously assess the resilience of Addi's credit portfolio under various adverse economic conditions. Translate the insights derived from these analyses into actionable recommendations for capital planning and provisioning, ensuring compliance with all applicable regulatory requirements.
• • **Oversee and Validate Independent Provisioning Methodologies:** Develop and maintain independent second-line oversight of credit loss provisioning methodologies. This oversight will encompass both IFRS 9 standards and Colombian regulatory requirements, ensuring accuracy, compliance, and robustness.
• • **Govern Credit Risk Data Quality and Reporting:** Establish stringent data governance standards to guarantee the accuracy, completeness, and timeliness of portfolio data. Define critical data elements, implement robust reconciliation processes, and independently validate data integrity from the point of origination through to collections.
• • **Foster a Risk-Aware and Sustainable Credit Culture:** Champion a culture of 'sustainable-by-design' credit principles, adeptly balancing aggressive growth ambitions with prudent risk-taking across product development, underwriting, and collections functions. Leverage empathy and operational credibility to influence and embed accountability for credit risk ownership throughout the organization, even without direct reporting lines.
• • **Drive Continuous Improvement:** Integrate lessons learned from performance analysis, vintage post-mortems, and model back-testing results into governance structures, policies, and credit training programs to continuously mature the organization's risk management capabilities.
• • **Collaborate with Cross-Functional Teams:** Work closely with Product, Engineering, Data Science, and Operations teams to ensure that risk considerations are embedded into the design and execution of all credit-related initiatives.
• • **Mentor and Develop Talent:** Build and lead a high-performing credit risk team, fostering an environment of continuous learning, professional development, and accountability.