Head of Interest Rate Risk (IRRBB) & Portfolio Mark to Market Risk Oversight
New York, NY, US, 10172
SMBC Group is a top-tier global financial group. Headquartered in Tokyo and with a 400-year history, SMBC Group offers a diverse range of financial services, including banking, leasing, securities, credit cards, and consumer finance. The Group has more than 130 offices and 80,000 employees worldwide in nearly 40 countries. Sumitomo Mitsui Financial Group, Inc. (SMFG) is the holding company of SMBC Group, which is one of the three largest banking groups in Japan. SMFG’s shares trade on the Tokyo, Nagoya, and New York (NYSE: SMFG) stock exchanges.
In the Americas, SMBC Group has a presence in the US, Canada, Mexico, Brazil, Chile, Colombia, and Peru. Backed by the capital strength of SMBC Group and the value of its relationships in Asia, the Group offers a range of commercial and investment banking services to its corporate, institutional, and municipal clients. It connects a diverse client base to local markets and the organization’s extensive global network. The Group’s operating companies in the Americas include Sumitomo Mitsui Banking Corp. (SMBC), SMBC Nikko Securities America, Inc., SMBC Capital Markets, Inc., SMBC MANUBANK, JRI America, Inc., SMBC Leasing and Finance, Inc., Banco Sumitomo Mitsui Brasileiro S.A., and Sumitomo Mitsui Finance and Leasing Co., Ltd.
The anticipated salary range for this role is between $223,000.00 and $248,000.00. The specific salary offered to an applicant will be based on their individual qualifications, experiences, and an analysis of the current compensation paid in their geography and the market for similar roles at the time of hire. The role may also be eligible for an annual discretionary incentive award. In addition to cash compensation, SMBC offers a competitive portfolio of benefits to its employees.
Role Description
Sumitomo Mitsui Banking Corporation(“SMBC”) is seeking an Executive Director to join the Treasury Risk Management group as Head of Americas Division Interest Rate Risk in the Banking Book (IRRBB) & Portfolio Mark-to-Market (MTM) Risk Oversight.
The Treasury Risk Management group is a risk function within the Risk Management Department Americas Division (RMDAD) that oversees the treasury risks and balance sheet strategy of SMBC branches and subsidiaries in the region; the group provides risk oversight that extends to liquidity risk, interest rate risk in the banking book, and capital management, and independently assesses business strategies that impact these risks. The mandate of the group is to ensure that all treasury risks are adequately identified, measured, controlled, monitored and reported.
The group works closely with the SMBC risk management department in Tokyo Head Office that oversees SMFG $2+ Tr. balance sheet risks.
The Head of Americas Division Interest Rate Risk in the Banking Book & Portfolio Mark-to-Market Risk Oversight will play a key role within the organization and will lead a small team with a mandate to oversee IRRBB and Portfolio MTM risk for the ~$300B combined balance sheet across different legal entities and jurisdictions in the region.
The position requires deep technical expertise in interest rate risk management, valuation methodologies, and regulatory frameworks, combined with strong leadership and stakeholder engagement skills
Role Objectives:
• Lead a team of risk management professionals specialized in IRRBB and Portfolio MTM Risk. Set the vision and strategic direction of the team, establish ambitious goals, and manage the team to ensure execution.
• Perform ongoing independent oversight of the IRRBB and Portfolio MTM risk of SMBC branches and legal entities in the Americas region. Review and challenge risk metrics, including economic value of equity (EVE) and Net Interest Income (NII) sensitivities to interest rates. Assess hedging strategies and related hedge accounting treatment.
• Collaborate with Treasury and Finance to influence risk management strategies.
• Execute ongoing review and challenge of the IRRBB and Portfolio MTM risk management framework. Review and challenge deposit modeling and other material assumptions.
• Identify enhancement areas in the IRRB and Portfolio MTM risk framework and ensure enhancement plans are defined and implemented.
• Participate in regional risk committees and governance forums.
• Prepare and present risk analyses and reports to senior management, regional boards, and global risk committees, as required.
• Ensure timely escalation of risk issues and limit breaches to appropriate stakeholders.
• Promote continuous enhancement of the oversight framework established by the independent second line risk function.
• Act as the primary point of contact for regional regulators on IRRBB and Portfolio MTM risk matters related to the second line function.
• Ensure proper set up and documentation of the team’s processes. Strive for process automation and ensure efficiencies in the team’s operations.
• Establish collaborative relationship with the first line Treasury functions; provide support and risk advice while maintaining independence.
• Build and maintain relationships with business partners and foster a risk culture through the organization.
• Interact with colleagues in Tokyo Head Office and in other regions (i.e., EMEA, APAC).
Qualifications and Skills
• 10+ years of IRRBB and Portfolio MTM risk experience in the first- or second-line groups of large U.S. banks or FBOs.
• Strong background in financial markets and products.
• Extensive understanding of balance sheet products and risks, including the products’ impact on IRRBB exposures.
• Deep knowledge and understanding of U.S. regulatory requirement for IRRBB (e.g., SR 96-13, SR 10-1, SR 16-3) and international standards; familiarity with IRRBB regulations in other jurisdictions is a plus.
• Extensive experience in interacting with U.S. supervisors is required.
• Deep knowledge of methods and approaches used for the quantification of IRRBB and Portfolio MTM risk. These include but are not limited to NII and EVE sensitivities and deposit modeling.
• Experience in setting or assessing adequacy of IRRBB and Portfolio MRM risk limits.
• Proven experience in leading risk management teams, defining the team vision, and achieving strategic goals.
• Strong leadership and interpersonal skills are required. Strategic thinking with ability to influence at senior levels.
• Extremely organized and structured with strong project planning skills and ability to deliver under tight deadlines.
• Excellent verbal and written communication skills with the ability to manage a variety of projects simultaneously.
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SMBC’s employees participate in a Hybrid workforce model that provides employees with an opportunity to work from home, as well as, from an SMBC office. SMBC requires that employees live within a reasonable commuting distance of their office location. Prospective candidates will learn more about their specific hybrid work schedule during their interview process. Hybrid work may not be permitted for certain roles, including, for example, certain FINRA-registered roles for which in-office attendance for the entire workweek is required.
SMBC provides reasonable accommodations during candidacy for applicants with disabilities consistent with applicable federal, state, and local law. If you need a reasonable accommodation during the application process, please let us know at accommodations@smbcgroup.com.
Nearest Major Market: New York City