HSBC Group

Role Purpose

The Head of Non-Banking Financial Institutions (NBFI) is responsible for the credit risk management (2nd Line) of a diversified portfolio across Securities companies, Insurers, Brokers, CCPs, Fund and Hedge Funds plus Structured Products including securitizations.
 
As the senior credit approver for the industry sector, the individual will oversee $548 Bn in limits and $195 Bn in exposure as of YE 2024, ensuring that all approvals align with the bank’s risk appetite, regulatory requirements and credit policies. Given the diverse nature of NBFIs and their varied risk profiles, the role requires specialised expertise in assessing non-bank financial institutions, understanding their capital structures, liquidity risks, regulatory considerations and market dynamics. The role holder will partner with the CIB’s Institutional Clients Group and Markets and Securities Services to risk manage the portfolio, and engage with key regulators and Global Internal Audit with regards to HSBC’s NBFI portfolio. They will also act as senior sponsor for HSBC’s NBFI models.

Principal Accountabilities 

• Acts as the senior global approval authority for all credit decisions relating to Non-Banking Financial Institutions.
• Ensure approvals align with HSBC’s credit policies, risk appetite and regulatory expectations.
• Provide independent input and challenge to define the Global Business Risk Strategy and Risk Appetite (ensuring alignment with Group guidance)
• Act as the key regulatory and audit contact on behalf of WCRM as it relates to HSBC’s NBFI portfolio
• Provide specialist input and critical review and challenge in the model development for NBFIs
• Work closely with CIB teams to support business growth while maintaining risk discipline.
• Build a positive risk and compliance culture through communication and education on risk management and effective role modelling of risk capabilities and corporate values.
• Support HSBC strategy through a leadership accountability and provide input into strategic plans for the function, in line with designated responsibilities
• Create a high performance culture
• Engage with and enable the WCRM team such that they can fully contribute to the wholesale business’ strategy. This role is an industry specialist role and will require close collaboration with Regional Chief Credit Officers and their teams.
• Engage with and enable the stakeholders such that they can contribute, influence and support where necessary.

Experience

Functional Knowledge Experience: 

• Extensive knowledge of credit risk assessment methodologies for NBFI’s, including Securities companies, Insurers, Brokers, CCPs, Fund and Hedge Funds and Structured Products.
• Strong understanding of counterparty credit risk evaluation, liquidity risks and capital adequacy for non-bank financial institutions.
• Experience in credit risk frameworks, stress testing and scenario analysis specific to NBFIs.
• 15+ years international experience in providing financial services to NBFIs and or to banks within a major bank.

External Environment & Regulatory Landscape: 

• In-depth understanding of banking and sector risks, including capital adequacy, liquidity and funding risks.
• Knowledge of global regulatory frameworks affecting NBFIs

Leadership & Interpersonal Skills:

• To have held a leadership position, ideally within a global financial services organization.
• Good interpersonal and communication skills. Be able to establish credibility and trust with internal business and risk stakeholders in a short timeframe.
• Experience of building, developing and leading a sizeable team.
• Experience of managing within a complex matrix environment.
• Experience working across different countries and cultures

Essential Capabilities 

Business Insight & Decision Quality: Applying knowledge of business and the market to make good and timely decisions that keeps the organization moving forward.
Optimises Work Processes: Knowing the most effective and efficient processes to get things done, with a focus on continuous improvement. 
Action Orientated: Taking on new opportunities and tough challenges with a sense of urgency, high energy, and enthusiasm.
Builds Effective Teams: Building strong-identity teams that apply their diverse skills and perspectives to achieve common goals.
Persuasion & Conviction: Using compelling arguments to gain the support and commitment of others; stepping up to address difficult issues and saying what needs to be said.
Manages Ambiguity & Ensures Accountability: Operating effectively, even when things are not certain or the way forward is not clear; holds self and others accountable to meet commitments.