November 2009

The year is almost over. Now is the time to look at your career for next year. Give it some thought and put some definite plans in place to give you the edge and make the most of your opportunities.

Choosing a career as a credit risk management specialist or building your career by training towards a likewise position may be exactly what you are looking for.

What is a credit risk management specialist?

A Credit Risk Management Specialist is someone who will finalise credit applications within the credit risk function. They will verify and check information received from credit risk analysts, develop a credit solution for clients’ needs and ensure compliance to credit policy and risk. They will also conduct client visits to develop deeper understanding of business, finalise and sign-off applications and make credit recommendations. Ongoing credit risk is undertaken based on credit decisions and daily reports are generated and reviewed for accuracy and completeness.

The specialist will be able to identify early warning signals in client behaviour, industry or markets that are indicative of change in risk profile and ensure that the appropriate actions are taken to mitigate risk. They are the interface that conducts the due diligence on clients at initial take-on. Ombudsman queries are managed including compliance issues relating to Financial Advisory and Intermediary Services Act (FAIS) and The Financial Intelligence Centre Act, 2001 (FICA) etc. Furthermore, they assist in legal recoveries and ensure that all the interaction with clients is properly documented.

What do you need to become a credit risk management specialist?

To become a specialist in credit risk management you must have a relevant degree or diploma at a reputable institution. Credit risk experience in a risk management related function, preferably in the banking environment, is also advantageous especially if you have gained knowledge relating to regulations and credit risk strategies. An understanding of a broad range of financial instruments, experience in conducting a credit analysis and an understanding of default and exposure mythologies in order to determine financial loss will put you at a definite advantage when contending for a position like this.

With key competencies such as the ability to work independently and within a team, good interpersonal skills and being a self starter will also proof to be advantageous in achieving excellence as a credit risk management specialist.

Except for the above key competencies, the following key skills are also essential should you decide to pursue this specific career path:

• Strong analytical skills
• Strong problem-solving skills
• Strong sense of responsibility
• Excellent communication skills
• Ability to understand complex structures and embedded risks

• You will contribute to the end-to-end management of credit risk data which includes managing data definitions and data quality maintenance strategies
• You will provide pragmatic advice concerning the practical implications of certain banking regulations
• You will applying technical aspects of regulations to practical business scenarios
• You will report and analyse risk data form relevant systems to meet regulatory requirements
• You will validate and improve on the existing probability of default models