Senior Credit Risk Allowance Analyst

Location: Cincinnati
Posted on: November 20, 2024

Job Description:

GENERAL FUNCTION: This function includes direct interaction with Enterprise Risk Management and Finance senior management. The Senior Credit Risk Allowance Analyst, along with the Allowance for Loan Loss Manager, are charged with assisting the LoanLossReserve Committee in developing quarterly estimates of the allowance for loan and lease losses that conform to appropriate accounting principles and regulatory guidance.

ESSENTIAL DUTIES & RESPONSIBILITIES:

* Lead the development and production of Allowance for Loan and Lease Losses (ALLL) methodology and reporting in assigned areas:

oAssume responsibility for the existing ALLL methodology and all related calculations and reports, which requires the employee to:

.Develop an understanding of existing and proposed credit loss models and ALLL methodologies.

.Identify, analyze, and support significant assumptions used in credit loss models and ALLL methodologies.

.Maintaining credit loss model and ALLL methodology documentation, including Model Validation templates and Sarbanes-Oxley risks and controls.

.Work collaboratively with Internal and External Auditors, Federal Reserve Bank Examiners, and Model Validation personnel.

oTypical duties include:

.Perform studies to estimate loss emergence and look-back periods for significant commercial product groups.

.Use assigned models to develop credit loss estimates.

Perform edit/validation checks and analytical reviews as necessary to verify data inputs are complete and accurate.

Manage and adhere to end-user computing controls.

Perform analytical review on model outputs to understand changes in modeled credit losses and to identify any errors or omissions.

.Perform and/or leverage portfolio analysis such as industry/geographic/product/other segmentation and determine impact upon ALLL.

.Perform analyses including vintage and cohort/attribution analysis, transition matrices, etc.

.Develop, analyze, and justify specific qualitative factors to support the level of qualitative adjustments to model output and the level of the unallocated component of the ALLL, incorporating macroeconomic factors and regulatory guidance.

.Maintain procedural documents, data and calculation reference material.

.Document controls in the ALLL process and perform tests of their design and operating effectiveness to assist in compliance with Sarbanes-Oxley.

.Provide support to the Risk Management division and other downstream users of credit risk information.

.Assist in developing ALLL estimates for CCAR stress tests.

.Communicate with internal stakeholders: Maintain regular communication with Accounting, the lines of business, various data sources, and Risk Management groups to ensure that all appropriate items and issues are addressed, and that important itemsaresuitably documented and presented to senior management.

.Assume additional responsibilities as required to fulfill data enhancement goals.

* Process Improvement:

oParticipate in the development of new ALLL model(s) and methodology.

oCollaborate with the teams who design, develop, implement, document and maintain new models and methodologies to improve the quality, consistency and transparency of the estimation processes.

oProvide alignment of methodologies, data, and reports between the allowance, economic capital, and loss forecasting.

oDevelop relationships within appropriate levels of management for process improvement ideas, issue identification and resolution.

SUPERVISORY RESPONSIBILITIES: No direct supervisory responsibilities, however, expected act as a mentor to junior staff.

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