HSBC Group

 Role Purpose:

The Head of Valuations, Structured Derivatives in Product Control will be responsible for methodology, production and reporting all aspects of the calculation of Fair and Prudent Value for instruments on the balance sheet either directly or via oversight and support for such calculations for Structured and Non-Linear Products, for the HSBC Group.

The Valuations Analytics and Reporting group is part of Global Product Control in the Controllership function and is split into 4 main areas of 

(1) Quantitative Analytics including Models and Financial Engineering 

(2) Fair and Prudent Value Methodology for relevant products on the HSBC Balance Sheet

(3) Production of the same, and 

(4) Reporting on the balance sheet. 

This includes the execution of the control environment and exercising significant judgement on Valuation Adjustments, to ensure the accuracy of HSBC financial statements specifically in relation to establishing fair valued for traded products across the firm.

In this role, the role holder will own valuation methodologies in respect of Structured and Non-Linear Products, which will include ownership of the related methodologies, models and policies, as well as responsibility for ensuring that these continue to remain appropriate and relevant following changes in HSBC positions and the wider market. The role holder will be expected to have extensive knowledge and experience in the valuation of Structured and Non-Linear Products, and related financial markets, and be able to apply this in their role.

As well as promoting a robust control framework over the methodologies, the role holder must also lead and support the overall PC strategy and in the simplification of the population through the identification of synergies and opportunities for efficiency. These in turn will lead to production efficiency in line with the cost reduction objectives of Finance and facilitate reduction in operational and regulatory risk. 

The role holder will therefore need to construct, lead and drive the detailed workstreams that will deliver on the simplification objectives leveraging the Analytics engineering teams and working with Finance change on process consistency and standardization of valuation framework including 

(a) the standardization of the fair value adjustment tools and methodologies, aligning them to new model and documentation requirements 

(b) ensuring that the teams deliver on the remediation items already defined 

(c) assist the PC VAR management team and the Controllership function in delivering a global Valuation operating model using leveraging the expertise across the team 

(d) drive and assist with resource planning that will allow PC VAR overall to be well positioned to achieve it control and simplification objectives for the future.

The role holder is also required to manage extensive interactions within the Controllership team, as well as other stakeholders including broader Finance, Internal Audit, PWC, PRA and ECB, collaborating with senior stakeholders in the business but also demanding accountability to fulfil the role as controller and gate keeper. 

Product Control manages a reserve base of circa $1.5 billion overall plus a considerable amount of adjustments to capital under Prudent Value. This role will be directly responsible for driving and implementing methodology for the underlying models that calculate the global Fair Value and Prudent Value adjustments for Structured and Non-Linear Products, globally. Participating to the leadership of the teams that produce the above adjustments.

Accountabilities:

• Defining and shaping plans, driving strategy, making complex decisions in support of the PC simplification and governance initiatives using the Analytics and financial engineering team. Additionally to do the same for the Group’s model governance framework.
• Participating to the building and maintaining a team of focused technical Finance Professionals who are driven by dealing with complex pricing issues in the derivative market, using robust financial data and insights to control, challenge and support business decision making on the methodologies driving fair value of all traded products and ensuring an appropriate control environment exists to support the business.
• Establish and run a well-resourced, technically qualified and diverse team with the right people in the right roles globally.
• Establish and drive Valuation best practice, engage with regulators and internal/external audit on all queries regarding the calculation of the Fair Value base.
• Ensure the daily production of Fair Value and Prudent Value Adjustments, and drive consistency of these adjustments across the business, ensuring that these are well understood and communicated to all stakeholders.
• Create an environment where operational risk requirements can be managed effectively, drive a culture of proactive risk identification, timely remediation and simplification.
• Understand and translate Group Strategy into the function and plot a beneficial course for the Group.
• Ensure the provision of opportunities, challenge & reward for its team and for ensuring uncompromising control & integrity.
• Stakeholder management of a set of senior and diverse stakeholders like global heads of businesses and CFO’s, global head of Product Control, group Financial Controller, focusing on businesses with exposure to Structured and Non-Linear Products.
• Communication is key with the role holder being required to simplify a complex set of undertakings and be the primary communication route to the above stakeholders.
• Detailed and up-to-date knowledge of Fair Value framework, products and underlying valuation methodologies is essential.
• Enable Product Control and Finance to achieve its digital objectives by, drive the adoption of cloud technology and helping drive the reporting and analysis agenda.

• Extensive knowledge and experience in the valuation of Structured and Non-Linear Interest Rate Products (with other asset class experience being beneficial), related financial markets, and the related industry standard pricing and valuation models.
• Detailed and up-to-date knowledge of the concept of Fair Value, Prudent Value and the related measurement and adjustment processes, management and control around the same. 
• Strong knowledge of regional/country regulatory landscape and ability to assess the impact of proposed shifts in the market to and rules to the model environment of the bank. 
• Ability to understand the products and their purpose for the clients. Holds undergraduate or postgraduate degree in similar numeric field and has 10+ years experience in a similar organisation (size and complexity). 
• Applying knowledge of business and the market to make good and timely decisions that keeps the organization moving forward. 
• Creating new and better ways for the organization to be successful. Knowing the most effective and efficient processes to get things done, with a focus on continuous improvement. 
• Taking on new opportunities and tough challenges with a sense of urgency, high energy, and enthusiasm. Building strong-identity teams that apply their diverse skills and perspectives to achieve common goals. 
• Painting a compelling picture of the vision and strategy that motivates others to action.
• Using compelling arguments to gain the support and commitment of others; stepping up to address difficult issues and saying what needs to be said. 
• Rebounding from setbacks and adversity when facing difficult situations. Operating effectively, even when things are not certain or the way forward is not clear; holds self and others accountable to meet commitments.