Work in Risk Management: responsibilities, schedule and skills. Profession "risk manager" Risk managers and their qualities

Executive Director of RusRisk,
Ph.D. Shemyakina T. Yu.

Awareness of the importance of risk management is also coming to Russian business.

As you know, risk is understood as the probability of obtaining an unfavorable result that can lead to losses, and therefore risk management should include the processes of identifying, assessing and optimizing its level with subsequent monitoring.

According to the magazines "Risk Management" and "Company", over the past three years, the demand for specialists in the field of risk management has increased almost seven times. The market for these services is growing at least tens of percent a year, enterprises are paying more and more attention not to current problems, but to possible tomorrow's risks.

The specifics of the current perception of possible threats by Russian business can be illustrated by survey data.

Source: Report on the conference "Insurance and Reinsurance in the System of Risk Management of Large Business" organized by the Russian Policy Information Group with the support of the Russian Risk Management Society (RusRisk).

According to the Risk Management magazine, the following risks will become the most significant in the next five years (in descending order):

• reputational,
• regulatory,
• the risk of missing out on strategic business development opportunities and the dangers associated with outsourcing service providers,
• political risks,
• strategic partnership risks,
• consequences of climate change,
• New generation IT threats,
• the risk of pandemics
• economic instability,
• terrorist threat,
• rise in organized crime
• increased competition from abroad.

The expert survey "Assessment of the development of risk management in Russia" identified the main problems of increasing the level and quality of risk management (% of the number of respondents is given):

Source: Russian Polis magazine.

According to a survey by the British magazine StrategicRISK, in the future, many issues will be addressed outside the traditional ways of transferring risks. In five years, risk management will focus primarily on managing operational risk.

A more aggressive approach to risk management, as opposed to simple risk reduction, will be used more widely. A significant part of the responsibility will be transferred to line managers. The role of risk managers will primarily be to coordinate risk analysis, loss prevention and risk transfer strategies. Risk management will be perceived as a specialized activity that does not fall within the competence of auditors, and risk managers will receive a higher status in the organization - at the level of the board of directors - and will be able to solve a wider range of issues related to strategic planning, policy development of the organization, production , quality management and decision making.

Profession risk manager

Twenty years ago, as risk managers, company presidents sought to hire insurance business professionals to act as a buffer between company management and the enigmatic world of insurers. According to Tillinghast-Towers Perrin's Enterprise Risk Management: Trends and Emerging Practices, today's typical enterprise risk managers are not highly specialized in risk management—their careers have developed in most cases over common functions management (including internal audit). This confirms that the risk manager is required to have the preventive thinking of the head-strategist and coach.

In the field of risk management, the profession of a specialist risk manager is also being formed. Specialists in identification, analysis, monitoring and specific types risk management help to form and justify an integrated risk management program.

In commercial, financial, government organizations, educational institutions, in almost all organizations, risk managers mainly worked with insured risks. At the same time, line managers are primarily interested in business risks such as competitive, operational and personnel uncertainties. It follows that any management in business is one way or another risk management, and any line manager is to a large extent a risk manager.

In a market society, it is the firm that is responsible for paying all damages that have occurred due to its action or inaction. And claims for such damages can be significant. In today's world, every employee becomes a risk manager to a large extent, risk management itself in a well-managed company becomes a "shared collective profession." It is this approach that allows us to resolve the contradiction between the expansion of the need for risk managers and the high requirements placed on them.

What are the specific requirements for professional risk managers.

Criterion 1. The effectiveness of the risk management program developed and implemented in the organization.

Criterion 2. One or more major organizational issues identified and resolved by the risk manager.

Criterion 3. Ability to inventively apply a wide range of risk management and insurance tools.

Criterion 4. Examples of creative and effective use of the insurance market opportunities to create an organization's protection system.

Criterion 5. Contribute to the creation of an intelligence system within and outside the organization that effectively collects and stores information about risks, events and activities that affect the organization's risk management and insurance.

Criterion 6. The ability to competently manage the risk management unit and perform the risk management function in other parts of the organization.

Criterion 7. Achieve the most cost-effective operation of the risk management program in the long term.

Criterion 8. Achieving excellence in one or more broad areas, resulting in improved management of the organization's core operations.

Criterion 9. The manifestation of attitude and active actions to strengthen and develop the profession of "risk manager".

Criterion 10. Continuing education in the field of risk management.

In order to outline the current state of the profession in developed countries, let's look at some statistics. According to a study by the Center for Risk Management at Georgia Enterprises and Tillinghast-Towers Perrin, 85% CRO (Chief Risk Officer - in Russian enterprises, similar functions are now performed by heads of risk management departments or internal control and audit departments, such specialists work in energy, utilities, insurance, banking, and financial services), 50% of the organizations surveyed reported that they had a CRO position only in the last 2 years, 20% in the last 3 years, and only 1% in the last 5 years.

There are three main reasons for creating such a position in enterprises and companies of Russian business: 1) centralization and coordination of risk management; 2) implementation of an integrated approach to risk management; 3) improving the awareness of management, the board of directors and other interested groups about the risk position of the organization.

The most important qualifications for a CRO position are: communication skills (18%), ability to manage (8%), knowledge of accounting and reporting (accounting) (15%), knowledge of finance (22%), knowledge of mathematics and statistics (24%) , education in the field of risk management (13%).

Risk management services are often formed in the form of small units capable of achieving a sufficiently high business security with minimal means. This requires an increasing level of professionalism from risk managers. The staff members of these units should be well educated and active employees of the firm. In small firms, risk management functions will increasingly be given to their owners and managers.

The subordination of the risk management service can be different: 45% of CROs are directly subordinate to the top manager of the organization; 35% - to the chief financial officer of the organization and 20% - to other officials.

For the foreseeable future, CRO positions will be created by: financial and infrastructure firms, trading firms, telecommunications companies and large multinational companies, as well as integrated risk management services will be formed in many firms in most industries.

Risk Management Process

Risk management ensures the achievement of the company's goals and objectives and, accordingly, contributes to its capitalization, development and image due to:

• applying a systematic approach that allows planning and implementing long-term activities of the organization.
• improving the decision-making process and strategic planning by developing an understanding of the structure of business processes, changes occurring in the environment, potential opportunities and threats for the company.
• contribution to the most efficient use/allocation of the capital and resources of the organization.
• protecting the property interests of the company.
• optimization of business processes.
• Improving the skills of employees and creating an organizational base of "knowledge".

Risk management is a central part of a company's strategic management. This is a process by which the company systematically analyzes the risks of each type of activity in order to achieve maximum efficiency of its activities and, accordingly, increase the value of the company.

Risk management as a unified management system includes a program for monitoring the fulfillment of tasks, an assessment of the effectiveness of ongoing activities, as well as a system for rewarding personnel at all levels of company management.

Risk management should be incorporated into the general culture of the company, accepted and approved by the management, and then communicated to each employee of the company as a general development program with specific objectives.

The risk management process includes a sequence of tasks to develop the strategic goals and objectives of the company; risk diagnosis and identification, description and measurement; risk assessment and risk reporting; development of a risk management program and distribution of risk management functions in the company; monitoring the risk management process (Fig. 1).

The risks to which a company is exposed can arise due to both internal and external factors. The diagram below (Figure 2) shows the key risks arising from internal and external factors. Risks are differentiated into the following categories - strategic, financial, operational, dangers.

Different levels of company management require different details of risk information:

The board of directors (shareholders) must be aware of the risks the company faces; monitor the implementation of the risk management program; know the anti-crisis program; maintain the image of the company.

The structural unit of the company must clearly know the risks that fall within the scope of its direct activities; have clear process indicators that allow ongoing monitoring of the effectiveness of the risk management program; report systematically to management on the performance of the risk management program.

Each employee must understand his/her contribution to the overall risk management program, understand the importance of the risk management system for the corporate culture, and promptly report to their direct management on any changes or deviations in the risk management program.

Which specialists work in the company's risk management service

1. Specialist in the organization of the risk management process

Must have good organizational and coordination skills as mainly performs administrative functions, for example, drawing up a register and a risk map, convenes a risk committee, monitors the formation of action plans for risk management. At the same time, in its activities, it must be guided exclusively by the approved corporate risk management standard and the company's instructions.

2. Risk Assessor

Must have good skills in mathematical modeling as well as good knowledge of probability theory and mathematical statistics. At the initial stage, it is not necessary to have any qualification in risk management. Since the process of implementing the corporate risk management cycle inevitably goes through the risk assessment stage, the risk management service must necessarily have an employee with sufficient skills and knowledge for this. Like other employees of the risk management unit, he must be guided by the company's regulatory and methodological framework for risk management and management instructions.

3. Expert (analyst) on production risks

On the one hand, the activity of each company in the real sector is unique and specific. On the other hand, the main internal risks of the company are operational risks, which include the production risks of the real sector company. Qualitatively identify production risks and participate in the processes of planning measures to manage production risks can only be an employee who is an expert in precisely the production activities that are inherent in a particular company. This employee can be drawn either from the relevant production business units of the company, or from other companies in the industry, but in any case, it must have specific production experience.

As the necessary experience and qualifications in risk management are obtained, the activities of employees in the organization of the risk management process, risk assessment and production risks can be combined, and the number of these employees is optimized. At the same time, of course, it depends solely on the motivation of each individual employee to obtain related competencies, i.e. from their aspirations to their own universalization within the framework of the company's risk management and their own participation in this process.

If the company has implemented and operates an integrated risk management system (CRMS), then the following specialists may also be involved.

1. Employee for IT support of the CRMS

If a company plans to implement or has already implemented an IT system that supports risk management processes in accordance with the corporate risk management standard, then the administrator of this system must be part of the risk management department. However, the responsibility of the administrator of the IT system for risk management should lie with the person responsible for organizing the risk management process.

2. Occupational Health and Safety Risk Officer

3. Environmental Risk Officer

4. Information Security Risk Officer

The system of labor protection and industrial safety, the environmental management system, the information security management system should be subsystems of the corporate risk management system, especially since the risk management methodology is the same, no matter what risks it relates to.

At the same time, health and safety management systems, environmental management and information security are among the most implemented standards in the world and the Russian Federation, in terms of the frequency of implementation in companies (along with quality management standards). On the other hand, if we examine the relevant basic standards of these systems, then they are talking about risk management. In Russian companies, even before the introduction of a corporate risk management system, one can often find the presence of the above systems implemented or being implemented. Of course, the employees responsible for these systems should ideologically report to the company's head of risk management. However, due to the specifics and uniqueness of the situation in each individual company, at the initial stage, this accountability can only be implemented functionally, i.e. without direct organizational involvement in the risk management unit.

After the CRMS is implemented, and risk managers gain sufficient qualifications (competence) to manage these three systems, appropriate organizational changes should occur leading to the organic entry of these systems into a single corporate risk management system.

5. Market risk officer

This is an employee dealing with the so-called market risks: currency; percentage; price (commodity). That is, the risks of fluctuations in foreign exchange rates, fluctuations in interest rates, as well as fluctuations in market prices for the company's products and for raw materials consumed by the company, electricity, etc.

Managing these risks is often accompanied by working with forwards, futures, options, swaps and other market risk management tools for companies in the real sector of the economy.

At the same time, it is often found that market risk management using the above methods is carried out by one of the divisions of the company's "financial block" long before the start of the implementation of the CRMS.

The profession of a risk manager in Russia in recent years has been increasingly declaring its necessity, since uncertainty and possible losses must be foreseen and their impact on business must be limited, and not dealt with with the existing consequences.

This needs to be learned!

Literature

1. MA Rogov The Concept of Development of the Russian Society for Risk Management. - M., 2009
2. Risk Management: Textbook / Ed. I. Yurgens.- M .: "Dashkov and K", 2003
3. Risk management standards. FARM, 2003

Seminar "Competencies of a risk manager"

The speakers from RusRisk will be:

• Shemyakina Tatiana (executive director)
• Lyubov Belousova

Participation in the seminar is free.

Please take part in.

Profession "Risk manager"

"Risk manager" sounds intriguing, and not only the name, but also the essence of this profession is akin to testing aircraft, only in business. A risk manager is a specialist who looks for all kinds of risks in the activities of companies, assesses the degree of their danger, the amount of damage and makes recommendations on how, if possible, to reduce the negative consequences of the risk.

It is difficult to work as a risk manager, because such a specialist is constantly on the verge of something. Where there is risk, there is always the danger of a decrease in profits, sometimes there is only one way to minimize risk in a company - to completely stop its work. Therefore, it is important for a risk manager to be a good analyst, to be able to quickly and correctly understand the situation, trust his intuition and take responsibility for the proposed decision or advice. For example, “the risk of loss of business reputation” - it is necessary to assess the qualities of the proposed candidate for the post of manager of a large company in several areas: will he be able to get the company out of a crisis situation, what methods will he use in this case, how decent he is, and, at the same time, time, flexible in its relationships with people, etc. "Credit risk" - to assess how likely it is that the borrower will not repay the loan or repay, but not on time. "Market risk" - to assess whether it is worth buying certain shares, securities, foreign currency, etc. Many serious rating agencies (Moody`s, Fitch, Standard & Poor`s) keep a whole staff of risk managers who can assess various insurance risks. Data on various risks is especially valuable for investors who, before investing money, would like to assess the situation in any company or business area.

In the field of risk management, up to 100 types of various risks are distinguished.

Types of risk (most common):

Credit

Investment

Operating

Market

Legal

Insurance

Exchange

Transport

Competitive

Risk of loss of business reputation

Personnel uncertainties

Today, risk managers are most in demand in the following areas:

investment banking

have some programming skills

be able to search for the necessary information inside and outside the company - to develop actions that affect risk management

be able to develop a risk management program in the company and evaluate its effectiveness

excellent analytical skills

the ability to listen and trust your intuition

have a stable nervous system, because in the work of a risk manager there are times when they do not want to follow his recommendations.

Tips for those who want to become a risk manager

get an initial good education in the specialty "risk management" at a financial and economic educational institution, then at a business school;

you can start a career as a risk manager in an insurance company and learn how to assess the various risks of client companies;

credit risk managers begin their work as credit analysts in banks and investment companies or in rating agencies that collect, study and provide information on issuing companies;

as a rule, in large banks and the most serious companies for risk managers, the requirement is at least three years of experience;

according to recruiters, in the future the demand for professional risk managers will only increase, especially from banks, leasing and financial companies, trading firms, telecommunications companies, large international corporations and those firms that are looking for Western investors.

How much do risk managers earn?

The minimum salary that risk managers in Russia start their work with is $1,500. The average salary offered to credit risk specialists is $2,500. The salary level can reach $10,000 or more - this is how much the heads of risk management departments of large industrial holdings and experienced, competent specialists are paid.

leasing risks - from $1500 to $8000

credit risks - from $1500 to $9000

insurance risks - from $1500 to $6000

other risks in the financial sector - from $1,500 to $8,000.

How much are risk managers paid in Western countries? Exchange risk managers can receive up to 235 thousand pounds a year. According to analysts, the most demanded and, accordingly, highly paid are risk managers in the field of exchange and operational risks. Of the 630 respondents in a recent PSD Group poll, 74% said they were looking to hire more risk managers this year, with only 1.4% planning job cuts. This trend indicates a steady interest in the risk manager profession. This is also evidenced by the fact that, according to the study, the salary of risk managers over the past year has increased by 15%, and bonuses are in the amount of 100% of their salary.

Level wages risk managers in 2007 (in Europe):

exchange risk manager - 119 thousand pounds

risk manager - 60 thousand pounds

operational risk manager - 107 thousand pounds

credit risk manager - 117 thousand pounds

credit risk manager - 55 thousand pounds

operational risk manager - 54 thousand pounds.

Extract from the book "Credit Risk Analysis".

Growing competition, lowering rates (in a stable market economy) are forcing banks to look for reserves to retain profitability. Managing the probability of loss while keeping returns at an acceptable level becomes an extremely important task.
Risk management plays an important role in this. The organization of risk management technology in a commercial bank is a rather capacious and lengthy process. The functions and tasks of risk management are expanding, and the demand for qualified specialists is growing year by year.
From correct setting tasks of the risk manager depends on the effectiveness of the risk management system as a whole.

Risk taking is the basis of banking, i.e. management of banking operations is essentially risk management, and, first of all, risks associated with the banking portfolio (with a set of assets) that provide the bank with income. Banks are successful only when the risks they take are reasonable, controllable and within their financial capabilities and competence. The main task of bank management is to find the optimal balance between profit, liquidity and risk. Risk management plays an important role in this process.

Tasks of risk management

A risk management organization that includes:

• formation of risk management bodies, determination of their competence;
• statement organizational structure bank, distribution of functions and powers for risk management;
• development and approval of risk management policy;
• development of strategy and tactics of risk management;
• development of internal regulations that include clear methods of risk management;
• control over the correctness, adequacy and completeness of the application of the approved control and risk management procedures.

Development of risk management techniques and methods, which includes:

• development of risk analysis methodology;
• development of techniques and methods of risk control;
• development of techniques and methods to reduce risk.

Development of proposals for optimizing the credit work of the bank in order to increase profitability with minimal risks, incl. in an uncertain business environment.

Main functions of a risk manager

Analysis of credit risk at the time of granting a loan

The risk manager analyzes the risks at the time of granting a loan by identifying negative risk factors and assessing it. Risk analysis is carried out after the conclusion of the credit department, the economic security service and, as a rule, the legal service.

The sources of risk analysis are the documents of the borrower provided for consideration of the loan application (primary documents); official website of the organization; website Arbitration Court; credit history bureaus (however, the CBI system is still underdeveloped in Russia); website of the tax office; analytical and statistical agencies; other external sources of information.

The conclusion of the risk manager should contain a descriptive part that takes into account negative risk factors and conclusions about the level of risk and ways to minimize it (if the risk is accepted).

Analysis of credit risk during the term of the loan agreement

In the event of a loan restructuring (prolongation, change in the repayment schedule and other significant conditions of loan documentation), the risk manager assesses the risks and prepares an opinion on the same principle as in the analysis of risks at the time of consideration of the application.

Credit risk control

Considering that during the crediting period the risks may change (increase) under the influence of both internal and external factors, the risk manager constantly controls the risk by:

• quarterly monitoring of the financial position and actual activities of the borrower in order to timely identify problem assets (in the presence of negative risk factors);
• constant control over the observance by the borrower of the main terms of the loan agreement (maintaining the minimum turnover on bank settlement accounts, compliance with the debt burden, etc.);
• constant control over the timely monitoring of the provision of the collateral service of the bank and (or) the credit unit.

If negative risk factors are identified, in other words, if non-standard assets (assets with signs of bad debts) are identified, the risk manager makes a decision on early withdrawal of a loan or suggests ways to minimize the risk. In order to control risk, it is advisable to keep records.

Minimization (leveling) of risks

If negative risk factors are identified in the process of performing the above functions, the risk manager assesses the likelihood of occurrence of events leading to losses and prepares proposals to minimize the identified risks. So, for example, if the financial situation worsens, it can be proposed to additionally check the reliability of the borrower's main counterparties, request explanatory information from the organization on unsatisfactory financial indicators, refer to the analysis of management reporting, etc. In the event of a high probability of further deterioration of the financial position of the borrower, the risk manager may propose to strengthen the bank's collateral position by issuing additional collateral or other measures. More details on the negative factors and ways to minimize credit risk will be discussed in Chapters 2 and 4, respectively.

Development of measures for dealing with problem and overdue debts

In case of identifying problem debts (non-standard assets) or the occurrence of overdue debts, the risk manager develops an action plan.

Control over the correct application by the structural unit of the developed credit system, compliance with regulatory documents (including on reservation) and the formation of proposals for optimizing the bank's work.

Example:

Control over the correct application by the structural unit of the developed lending system, compliance with regulatory documents and the formation of proposals for optimizing the work of the bank:

I. In accordance with the functional duties of the risk assessment specialist, control was carried out over the correct application of the developed lending system by the credit department and compliance with the bank's regulatory documents.

It is necessary to pay attention to the following violations by the credit department of the internal regulatory documents of the bank:

1. If there are current loans in other commercial banks / other obligations to third parties, it is necessary to request from the borrower copies of all pages of loan agreements / loan agreements signed by the head and chief accountant and carefully analyze the terms of the loan, paying special attention to the conditions for fulfilling the borrower's obligations to the commercial bank / third party
(in accordance with clause 1 of Instruction No. 3 (hereinafter, in this example, internal instructions and regulations adopted by the bank are meant; their numbers can be any));

2. It is necessary to analyze the production capabilities of the borrower (clearly indicate in the conclusions of the lending unit the degree of wear and tear of equipment and analysis of the implementation of the production program for the last four reporting periods / calendar year, as well as the availability of a production program for the lending period)
(in accordance with clause 2 of Instruction No. 3);

3. If the borrower makes settlements using barter and promissory notes (including if the borrower's account is used to transfer funds on a commission basis or the organization uses tolling schemes), it is necessary to determine the share of income from these types of settlements in the total income of the borrower (in accordance with clause 3 of Instruction No. 3);

4. It is necessary to carry out a motivated forecast of changes in the financial condition for the near future, paying special attention to borrowers in whose activities there are unfavorable business development trends (the presence of a current loss, a decline in production, etc.)
(in accordance with clause 4 of Instruction No. 4);

5. When granting loans for replenishment of working capital with the establishment of a tranche, the borrower should justify the established tranche period and compare the terms of repayment of tranches with the volume of cash receipts attributable to the period of repayment of the loan: with the terms of settlements under contracts concluded with suppliers and buyers, as well as with the turnover period receivables and payables
(in accordance with Appendix No. 1 to Instruction No. 3);

6. It is necessary to indicate the terms of settlements under agreements with the main counterparties
(in accordance with Appendix No. 2 to Instruction No. 283);

7. It is necessary to pay special attention to the following borrowers: whose property obligations to affiliates amount to more than 25% of the balance sheet; the share of the holding companies in the accounts receivable and payable of the borrower is more than 20%; the borrower actively uses non-monetary forms of payment in economic circulation (in accordance with clause 5 of Instruction No. 3);

8. An action plan for dealing with non-standard assets should be developed in a timely manner.
(in accordance with Section 5 of Order No. 10).

II. As a result of assessing the quality of credit work, the chief risk assessor makes the following proposals for optimizing credit work:

1. In the further work of the credit unit, it is necessary to take into account all the above comments;

2. It is necessary to analyze the causes of losses indicated by the borrower and form your own reasoned judgment (often clients do not provide a clear and correct explanation of the causes of losses);

3. The financial position/goodwill of debtors and creditors (or suppliers and buyers) whose share exceeds 30% of the total volume of receivables/payables (or the volume of contracts) should be assessed;

4. In order to identify overdue receivables / payables, it is advisable to quarterly request from the borrower a balance sheet for accounts 60 and 62 and analyze the movement of receivables / payables (at least for the main debtors and creditors).

It should be noted that some risk managers work with the conclusion of the credit department and use only the information that is presented in it. Others prefer, in addition to the conclusion of the credit department, to work with primary documents: balance sheets, contracts with counterparties, constituent documents, etc. I strongly recommend using primary documents for two reasons. The first reason is trust but verify. Do not forget that the tasks of a risk manager and a loan officer are different. While the credit department is tasked with fulfilling the lending plan, the risk manager is tasked with improving the quality of the loan portfolio.

The second reason is that one head is good, but two is better. The turnover of staff in the credit department is quite high, so young professionals may not know the intricacies of credit work, this requires relevant experience. And of course, if you are a generalist (you have more than one education and you worked in a bank not only in the credit department, but also in other departments), then in some issues you may well be more competent than your colleagues. In any case, working with primary documents provides much more opportunities for a qualitative and deeper analysis of credit risks.

Credit Process

Basic concepts:

Consideration of an application for a loan

Preliminary negotiations and consideration of the application
Based on the results of preliminary negotiations with the borrower, the following decisions are made:

• termination of consideration of the application;
• bringing the list of documents required for granting a loan to the borrower;
• analysis of financial and economic activities of the borrower;
• preparation of opinions for the lending unit, SB and SKKR on KK.

As a rule, at this stage, the loan officer checks that the borrower complies with the basic requirements of the bank, failure to comply with which leads to a refusal to provide credit funds. For example, the following requirements can be given:

• positive credit history;
• absence of overdue loans, receivables and payables;
• lack of file cabinet No. 2 to the current account;
• stable financial position, positive business reputation;
• manufactured products or services performed by the borrower must have a confirmed demand in the market, ensuring stable sales and receipt of proceeds from sales in monetary terms;
• the period of operation of the business - at least 1 year;
• the actual location of the borrower - in the region where the bank, bank branches are located;
• openness of business owners in relation to the bank, i.e. willingness to provide all necessary information about the business, affiliates, etc.;
• compliance of the project proposed for financing with the credit, collateral and interest policy of the bank.

The above list is individual for each bank. It is designed in accordance with the credit and risk management policies of the bank.

Making a decision to provide a loan service

1. After collecting and analyzing the borrower's documents for a loan, the lending unit prepares a memo to the Security Council, AP with its conclusion attached.
2. The conclusion on the provision of a credit service with a positive assessment of the borrower by the lending unit, the SB and the AP is submitted for consideration by the DKR. Employees of the specified division get acquainted with the conclusion and prepare their memo / conclusion based on the results of the consideration. In the event of a negative conclusion of the DKR, the issue of providing a credit service, as a rule, is submitted to the credit committee for consideration only after the level of credit risks has been reduced or to the head office of the bank if the project is considered by a branch.
3. After the conclusions of all services are received, the lending unit examines the conclusions of the CC members. The conclusion on the provision of credit services of all services, including conclusions that have contentious issues, is submitted for a decision to the CC.
4. Consideration of the issue of providing a credit service to the KK.
5. Refusal to provide a loan service or a positive decision of the CC (within the approved lending limit) with further processing of loan documentation.

It should be noted here that, depending on the approved procedure for the bank's credit process, in case of a negative conclusion of the Security Council and (or) the DCF, no voting is held, and the project is automatically considered rejected. In some cases, consideration of the application is possible only in the head organization of the bank.

Lending operations in the branches are carried out in accordance with internal regulations/regulations based on the unity of approaches, methods and methods for analyzing loan applications, procedures for making and implementing decisions on issuing loans. In order to comply with the regulations of the Central Bank Russian Federation, limiting credit risks and maintaining the optimal level of liquidity of branches and the bank as a whole, limits for independent lending are set for each branch.

At the same time, the procedure and frequency of setting limits, as well as control over their observance, are established in accordance with the internal documents of the bank. The decision to provide a credit service by a branch with standard conditions within the established limits is made by the credit committee of the branch independently based on the conclusion of the lending and other divisions of the branch involved in the process of providing the credit service. The decision to provide a branch with a loan service with non-standard conditions or above the established limits, as a rule, is made by the credit committee of the parent organization of the bank based on the conclusions of all departments of the branch.

Legal due diligence of credit documentation

1. After a positive decision of the CC, the JS prepares an opinion on the subject of checking the legal capacity and powers of the Bank's counterparties' management bodies, based on the memorandum of the lending unit.
2. In the event of unavoidable legal risks, the issue of lending is re-submitted at a meeting of the Credit Committee.
3. In the absence of legal risks, the Loan Documentation package is signed and the loan is granted.

Risks are an integral part of doing business. In the classical definition of entrepreneurial activity, two basic concepts can be found: "the risk that must be taken in the course of its implementation" and "profit as a reward for taking risk." With the right approach to risk management, a company's profits can increase significantly. Well, risk managers are responsible for implementing the “correct” approach.

Speaking about risk management, it should be noted right away that it is rather function manager than a separate profession. This thesis follows from the definition of the risk structure of any business:

1. Financial risks, due to the implementation of which the organization may not be able to fulfill its financial obligations to counterparties. This type includes:

• liquidity risks in terms of the balance of assets and liabilities by terms of being on the balance sheet;
• market risks as risks of asset value decrease due to changes in market factors;
• credit risks as risks of non-repayment of loan funds, etc.

2. Operational risks arising in business processes that are associated with fraud, various failures in IT support, imperfection of personnel policy, violation of safety rules at work, damage to assets, legal incidents and other factors occurring in the course of the organization's operations.

3. Business risks associated with incorrect management activities:

• choosing a development strategy that does not correspond to the goals, mission and vision of the organization;
• loss of reputation in the market;
• decrease in the company's market value.

4. Other types of risks, depending on the type of activity of the company.

As a rule, the multifaceted “risk management” function is distributed among various departments of the company (legal department, security service, risk management department, etc.). It is coordinated by the head of the organization (this is a strategic issue) or a specially authorized executive director, whose duties include:

• participation in determining the company's development strategy;
• search for ways to achieve the most effective risk / return ratio.

Scope of responsibility and job requirements

The position of "risk manager" is more associated with the financial sector (banks, insurance and leasing companies, investment and pension funds, etc.). Due to a certain homogeneity of financial products and business processes, financial companies began to distinguish typical segments of activities related to the management of homogeneous risks. The position of a specialist who is responsible for such a direction is called a "risk manager".

For example, commercial banks are in demand for risk managers who manage credit, operational and financial risks in various business lines (corporate, small and medium-sized businesses, retail, investment, and others).

How versatile are these professionals? In the market of banking and financial services - quite. Thus, a risk manager who has worked for a long time (more than three years) in a universal commercial bank or insurance company will be able to apply his knowledge and tools in any similar institution without much difficulty in the future. But the sectors of the real sector differ much more: a risk manager with experience in agricultural holdings is unlikely to quickly achieve success in metallurgy or oil refining.

As a result, the professionalism of a risk manager is significantly limited by industry specifics - knowledge of products, business processes, and specifics of a particular market. This circumstance largely determines the main job requirements:

1. Knowledge of business processes and the specifics of the company's activities (or at least knowledge of the business in the part for risk management in which the risk manager is responsible).
2. Understanding the characteristics of the market in which the company operates, the ability to analyze the situation.
3. Possession of risk management tools in this market.
4. Understanding the specifics of risks when concluding contracts and subsequent monitoring of their execution.

The risk manager (or the relevant department) always reports directly to the chairman of the board of directors.

Functional

In principle, a specialist who meets the above requirements can cope with his main functional tasks: determine an acceptable level of risks at which the company's profitability will be maximum. But, of course, the success of these tasks depends largely on his personal qualities and experience.

For example, if a risk manager is responsible for the full cycle of credit risk management in a commercial bank, then his functionality includes a chain of tasks - from setting up a scoring model* so that the default level of the loan portfolio does not exceed a given threshold - to organizing the collection of problem assets in order to achieve the maximum possible amount of collection of problem debts at the minimum cost for the process itself.

The main task in the course of managing operational risks is to maintain a balance between the level of risks and the efficiency of the business process to which they are inherent. For example, by setting excessive protection of communication channels, you can significantly reduce the data transfer rate, which, in turn, will inevitably lead to a decrease in the number of operations performed in the IT complex and, accordingly, a decrease in business profitability.

It should be remembered that the specific functionality of a specialist in this area always depends on the specifics of the business, since this, although important, is still a supporting (guided) process.

Education Requirements

As a rule, a risk management specialist is expected to have applied knowledge in the following areas:

• mathematical and statistical analysis;
• information systems and technologies;
• jurisprudence;
• the subject area in which risks are to be managed.

The profession of a risk manager is quite new for our country, so the labor market is experiencing a lack of qualified personnel, and there are few educational institutions capable of preparing specialists for work in this area in Ukraine. Today, as far as I know, there is no such area of ​​training / specialization in universities. Until recently, risk managers were:

• experienced managers - people from business units who perfectly understand the key aspects of the activity;
• graduates of educational institutions of mathematical and technical specialties, who, having in their arsenal the apparatus of statistical and mathematical analysis of risk management, literally "on the fly" mastered the specifics of business management.

So far, the main "forge of personnel" for the market remains NTUU "Kyiv Polytechnic Institute", which graduated from approximately 70% of risk managers working in the banking system of Ukraine.

The situation changed in 2010, when the international Global Association of Risk Professionals (GARP) opened its branch in Ukraine. The steering committee of the GARP regional branch included well-known Ukrainian and international bankers. Today GARP offers:

• training and advanced training programs from the initial to the highest level of management;
• full certification in the field of risk management.

Twice a year, GARP conducts examinations for the FRM (Financial Risk Manager) certification, a globally recognized qualification in the field of risk management.

Attracting certified specialists - members of the Association - allows companies to form a modern culture of understanding risk management throughout the organization.

Career

The level of remuneration of the risk manager depends on the position held:

• top managers - heads of departments can earn from 5 to 60 thousand dollars per month (decided on an individual basis);
• middle managers - 2.5-3 thousand dollars per month.

Many people who have chosen this profession have an analytical mindset, so they are more attracted to a professional career - improving skills within the chosen direction. Of course, in doing so, they gain experience in different companies and sectors. But still, few strive for a vertical career: very rarely they "grow" to top positions and almost never become business leaders.

Of course, among risk managers there are people with a variety of character traits. Of the personal characteristics that help to achieve success in the profession, it can be noted: an analytical mindset and "greed for details" - while keeping the situation as a whole in focus. That is the key to success.

The expediency of introducing a position

The position of a risk manager responsible for ensuring the break-even of the business is introduced at the maturity stage of the company. Introduction to staffing positions with such functionality will be justified if it has already been created, described and “works” business process model. With the immaturity of business processes or an inadequate level of corporate governance, the risk manager is unlikely to fit into the overall structure in the best way. Moreover, its introduction can cause conflicts related to the division of powers and responsibilities: if business processes are not defined, then it is impossible to appoint their owners and completely determine the scope of authority of responsible persons.

It should be noted that even if the company does not have a separate specialist involved in risk management, the risk management process itself is always there. In such cases, it is carried out by various structural units, for example:

• security service- in terms of ensuring economic and physical security, countering fraud and external threats.
• Legal division- in terms of minimizing legal risks.
• Department of information security- in terms of ensuring the integrity, confidentiality and availability of information.
• Financial department- in terms of financial risk management.
• Internal Control Division- in terms of managing operational risks and the correctness of the work of business processes. And others.

In conclusion, I would like to note that there is no single definition of the profession of "risk manager", with which everyone agrees, yet. Business always involves risks. In fact, profit - the reward for risk management - is the main motivation of the entrepreneur. At the same time, the specifics of risks are always determined by the characteristics of the business.

Recently, management has been increasingly armed with information technology, which means that many traditional approaches and risk management tools are becoming obsolete. Therefore, it is impossible to say with certainty that the professional experience of a risk manager, which is valuable today, will be in demand in the future - even in a year. Risk management is a very dynamic process, and only those who constantly develop and keep up with the times succeed in it.
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* Credit scoring- a system for assessing creditworthiness (credit risks) based on numerical statistical methods. First, credit risk assessors develop risk assessment questionnaires. Each item on the questionnaire is worth a certain number of points. The decision to approve or refuse a loan is made depending on the number of points scored.

Article provided to our portal
the editors of the journal "Human Resources Manager"

• Career and Self-development

Keywords:

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The profession of a risk manager is one of the youngest in the Russian personnel market. However, it is in great demand: the ability to detect all kinds of risks in a company's daily activities, assess and mitigate their negative consequences is highly valued in various business areas, and especially in investment banking and insurance.

general description
There are several dozen types of risks. Among the most famous: credit, operational, market, legal, insurance. A risk manager is a specialist in the identification, analysis, control and monitoring of a certain type of risk.
Risk management is a core part of a company's strategic management. The current state of the Russian economy is such that financial institutions, banks, industrial and commercial enterprises operating in the market constantly have to deal with factors of uncertainty and unpredictability of the results of their activities, which are associated with various changes: commodity prices, exchange rates, interest rates. As a rule, a whole risk management system is created by large companies, and in small organizations, the functions of a risk manager are performed by management.

Education and experience requirements
Risk management as a separate specialization appeared in the leading financial and economic universities of the country (Finance Academy under the Government of the Russian Federation, State University Higher School of Economics, Academy of National Economy under the Government of the Russian Federation) quite recently. Therefore, there are very few professionals with the appropriate education.
Nevertheless, the requirements for the risk manager are high. The candidate must have knowledge in the field of risk management, macro- and microeconomics, banking, securities market, accounting of various types of organizations (insurance, financial and non-financial sectors). And also be aware of the peculiarities of accounting according to international standards, the fundamentals of law, statistics, higher mathematics, mathematical modeling. Plus, speak English and even have some programming skills. So it turns out that most people in this profession have economic and technical education.

Related careers
According to experts of the personnel market, it is better for a young specialist to start a career in an insurance company in order to try himself in assessing a wide variety of risks of client companies. After 2–3 years of work, such a specialist will become “interesting” for the industrial sector and will be able to switch with a promotion to the side of his recent client.
In commercial and investment banks, risk managers begin their journey as credit analysts who have "grown up" either in a bank or in one of the rating agencies that provide information about issuing companies.
The requirements for young professionals from employers in these cases are rather soft: higher education (preferably economics), work experience - 1-2 years.

Functional responsibilities
The functional responsibilities of risk managers are associated not only with the reduction of all types of risks, but also with the assessment of the consequences of financial decisions, risks and the effectiveness of investments in securities, as well as the choice of types of insurance.

Of course official duties risk managers depend on what kind of risks they manage. For example, in a bank, this specialist will be offered to perform the following functions:

risk analysis for the bank as a whole;
analysis of correspondent banks;
analysis of bond issuers;
control over the maintenance of limits;
coordinating the activities of the structural divisions of the bank in risk management;
carrying out preventive measures to manage the risks of individual transactions and the portfolio as a whole, reporting on the portfolio;
ensuring compliance with policies, procedures, risk management standards of business units.

In investment and financial companies, these specialists have to carry out:

building and constant monitoring of the scoring model;
work with large data arrays;
application of mathematical models in practice;
development of a decision-making methodology for a loan officer;
calculation of the default level, determination of its dynamics and analysis of the causes of changes in the whole loan portfolio and in the context of loan products;
risk assessment for new credit products, new product groups;
analysis of securities and investments in the stock market;
crisis management.

Skills
In addition to knowledge in economics, mathematics, statistics, econometrics, a risk manager needs the following skills:

2+ years of experience in risk assessment of corporate clients, or 3 years of experience as a credit analyst working with corporate clients;
good knowledge of Russian legislation and accounting, knowledge of IFRS;
analytic skills;
willingness to work in intensive mode;
free English language(oral and written);
experienced PC user.

The specifics of the profession
The main difficulty is due to the "youth" of the profession and lies in the fact that in many industries there is still no clear understanding of what risk management is in general.
In addition, even the head of the risk management department of a large holding does not make decisions alone. And in the investment banking sector, especially in banks with Western capital, all decisions must be coordinated with the head office. Sometimes this makes the work of Russian risk-takers difficult: it is not easy to defend your own point of view when your recommendations are refused to be followed.

Salary
Most applicants for the position of risk manager are recent university graduates. The average expected salary level for such specialists (without experience) is 2000 USD. That is, a risk manager with at least 2 years of experience is asking for 5,000 USD. e. Employers agree to such conditions because of the shortage of professionals.
The level of income of risk managers can reach 10,000 y.e. - this is how much the heads of risk management departments in large industrial holdings are paid.
However, there are certain difficulties in hiring experienced risk managers. While there is no standardized training in Russia, the professionalism of a candidate can only be assessed in the course of work.

prospects
Despite the fact that recruiters do not notice a boom in risk managers in the personnel market, there is always a demand for these specialists. And experts in the personnel market say that in the future, professionals in this field will be in great demand. Over the next few years, the demand for risk takers is expected to be especially high on the part of companies that want to be attractive to Western investors. Now these include banks and the largest leasing organizations, but the demand for risk managers from non-financial enterprises will increase every year.