Senior Economist / Regional Credit Manager, Grade G recruitment
CFRCR is primarily responsible for monitoring and managing IBRD’s country credit risk exposure resulting from member countries’ borrowing from IBRD for development purposes. Its function is to ensure that IBRD’s country credit risk exposure is commensurate with the risk appetite of stakeholders and strikes the appropriate balance between financial and development objectives of the organization.
Assessment of country credit risk is made both prior to and after a loan or guarantee is extended to a borrowing-member country. Prior to agreement on the lending strategy for a country program or an operation, CFRCR assesses the credit risk that such lending might entail for the institution and whether it is consistent with IBRD’s risk management framework, and then assists Country Teams in constructing lending programs appropriate from the credit risk perspective. Ex-post, credit risk management is conducted through (a) country risk evaluations; (b) estimating the appropriate level of provisions for expected losses on loans and guarantees, the results of which are incorporated in the financial statements of IBRD; and (c) assessing through credit risk portfolio models the level of exposure appropriate to IBRD’s income generating capacity and risk-bearing capital. The results of CFRCR’s assessments at the country and portfolio level help guide important financial decisions of the IBRD that are intended to safeguard its AAA rating.
Major elements of the framework to ensure appropriate credit risk outcomes include: (a) assessing and rating a member country’s creditworthiness through a rigorous process which includes an assessment of both qualitative and quantitative factors; (b) anticipating countries that are vulnerable to crises; (c) taking the lead on establishing the framework for credit risk policies at IBRD and monitoring and managing that framework, including IBRD’s negative pledge clause; (d) estimating the level expected and unexpected loan losses and stress testing these results through its in-house credit risk models; (e) quarterly calculations of provisions of loan losses and their reporting; and (f) short and long term IBRD exposure projections at the country and portfolio level. In addition, CFRCR takes a lead in arrears workouts of IBRD borrowers and engages with the Paris Club of bilateral creditors for debt restructuring.
Note: If the selected candidate is a current Bank Group staff member with a Regular or Open-Ended appointment, s/he will retain his/her Regular or Open-Ended appointment. All others will be offered a 3 year renewable term appointment.
Duties and Accountabilities
The department is currently seeking a Senior Economist/Regional Credit Manager who will play a central role in assessing the creditworthiness of IBRD borrowing countries, and in determining the risk of their actual and potential exposure for the IBRD balance sheet, including those related to IBRD guarantees. The Senior Economist will also play a key role in the area of loan loss provisioning and credit and portfolio risk modeling and measurement. The successful candidate is expected to have a good understanding of sovereign credit risk concepts and practices, be familiar with the drivers of the risk appetite of IBRD stakeholders and investors, and have an understanding of the balance between the financial and development imperatives of the World Bank’s mandate.
The individual will have a strong command of global economic, systemic, and financial issues, and external financing sources and instruments available to developing countries, excellent quantitative skills with a demonstrated aptitude for analyzing economic and financial data, and extensive on-the-job experience of assessing the macro-economic and financial policies of emerging market economies The Senior Economist/Regional Credit Manager will join CFRCR at the World Bank’s headquarters in Washington, DC, USA and will report directly to Merli Baroudi, IBRD’s Chief Credit Officer and Department Director of CFRCR.
Together with members of the current credit risk team, the accountabilities of the Senior Economist/Regional Credit Manager will be as set out below.
• Play an important role as part of the current team in ensuring the department’s credit risk framework and policies for managing small and large exposures are applied coherently and comprehensively within the financial framework of IBRD, including the institution’s role as a counter-cyclical lender, its uniform loan pricing policy, its provisioning and capital adequacy framework and its AAA rating status.
• Together with other team members contribute to the Department's work program in the area of loan loss provisioning and credit and portfolio risk modeling and measurement, including the design and development of new credit risk measurement and management frameworks and models, and the use, maintenance and periodic recalibration of existing models.
• Conduct other quantitative analytics and complex modeling projects.
• Produce rigorous analytical work on the macro-economic and financial situation of IBRD-eligible borrowers and countries transitioning from concessional to market-based finance and present the findings in credit risk reports and creditworthiness analyses.
• Write reviews of lending proposals and Country Partnership Strategies, and represent and present this written work, as the department’s representative, at departmental and Bank wide meetings.
• Work on credit risk issues for policy and Board papers and briefing notes for senior management.
• Liaise and engage with senior Bank staff to enhance their understanding and support of IBRD’s credit risk function and related policies.
Selection Criteria
Candidates must meet the generic criteria for international level GG: Advanced degree (Master’s and/or PhD) with concentration in quantitative fields such as Finance or Economics or a related discipline; or comparable, demonstrated, on-the-job experience.
• Relevant work experience, strong analytical skills and a proven track record of achieving high-quality substantive results over an extended period (typically 8 years) in the field of macro-economic and financial analysis with recognition by peers and managers for excellent and innovation.
• Strong and proven mathematical, statistical and analytical skills.
• Familiarity and experience with financial modeling techniques, including in the areas of sovereign credit and portfolio risk measurement and management and loan loss provisioning.
• Proficiency in VBA and Matlab or other related programming languages, or willingness and ability to learn these languages.
• Current knowledge of global economic and political developments and evolving trends in global capital markets and what they imply for the macro-economic outlook of IBRD borrowers or countries looking to transition from IDA to IBRD, the credit risk to the IBRD portfolio, the potential for revisions to Bank lending policies and practices.
• Understanding (or the ability to quickly assimilate) of the financial framework underpinning IBRD’s AAA financial framework and its implications for formulation of credit risk policies to guide IBRD lending practices and exposure limits
• Excellent inter-personal, communication and presentation skills, including the capacity to communicate complex technical issues in simple terms, verbally and in writing.
• Ability to interact effectively with other Bank staff and senior management and to convey departmental position clearly and tactfully; but with the capacity and readiness to stand firm on difficult and sensitive issues.
• Proven ability to work effectively in a complex, multi-cultural team environment, share knowledge and experience with other colleagues, and to work across organizational boundaries in a team based environment.
A high degree of self-motivation with the ability to work across a broad range of concurrent tasks, to set priorities and to achieve results in a demanding work environment.
Closing date: June 8, 2012
Location: Washington, DC
Qualified candidates may apply on-line.