Principal Economist/Credit Risk Head

Background / General description
The Credit Risk Department (CFRCR) is part of the Corporate, Finance and Risk Management Vice Presidency of the International Bank for Reconstruction and Development (IBRD). 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.

Duties and Accountabilities
The department is currently seeking a Principal Economist/Credit Risk Head who will play a lead role in assessing the creditworthiness of IBRD borrowers, in determining the risk of their actual and potential exposure for the IBRD balance sheet, and in establishing and managing the framework for credit risk policies at IBRD, including those related to IBRD guarantees. The successful candidate is expected to have an in-depth understanding of sovereign credit risk concepts and practices, be familiar with the drivers of the risk appetite of IBRD stakeholders and investors, and have a keen appreciation of the balance between the financial and development imperatives of the World Bank's mandate.

The individual will also have an exceptional command of global economic, systemic, and financial issues, a deep understanding of a broad range of financial instruments and their role in global finance, excellent quantitative skills with a strong aptitude for analyzing economic and financial data, and extensive on-the-job experience of working on emerging market economies with regard to macro-economic and financial policies and determinants of borrowing capacity. The Principal Economist/Credit Risk Head 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 primary accountabilities of the Principal Economist/Credit Risk Head will be as set out below. Secondary accountabilities will be tailored to the individual's skill set, expertise and interest. The primary accountabilities are:

• Play a significant 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.

• Play a similar role as above in the formulation of new measures or approaches to credit risk so as to ensure IBRD remains on the cutting edge of international financial institutions' standards.

• Be independently responsible for producing rigorous and original analytical work in the following areas: (i) credit risk reports on the macro-economic and financial situation of IBRD-eligible borrowers and countries transitioning from concessional to market-based finance; (ii) written reviews of lending proposals and Country Partnership Strategies, and to represent the department and present this written work at departmental and Bank wide meetings; and (iii) work on credit risk issues for policy and Board papers.

• Take the lead in the department's role in evaluating IBRD guarantees and formulation of related policies in conformity with the IBRD's overall governance framework for guarantees.

• Liaise and engage with senior Bank staff and other stakeholders to enhance their understanding and support of IBRD's credit risk function and related policies.

Criteria
Candidates must meet the generic criteria for international level GH. Advanced degree (Master's and/or PhD) in Finance or Economics or a related discipline; or comparable, demonstrated on-the-job experience.

• Relevant work experience and sustained record of achieving high-quality substantive results over an extended period (typically at least 10 years) with recognition by peers and managers for excellence and innovation.

• Deep and 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, the credit risk to the IBRD portfolio, and 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, written and oral communication skills; ability to interact effectively with Bank staff, senior management and oversight committees, including the Board to convey complex financial issues and departmental position clearly and tactfully; ability and readiness to stand firm on difficult and sensitive issues.

• Proven teamwork and leadership qualities with proven ability to work effectively in a complex, multi-cultural team environment, share knowledge and experience with other colleagues, coach and guide less experienced colleagues, and to work across organizational boundaries in a team based environment.

• Self-starter with a demonstrated ability to think creatively, perform at the level of a lead specialist and function effectively across multiple disciplines; ability to maintain high standards under pressure in a fast paced environment and to accommodate simultaneous demands from various sources.

Job summary

Return to results