Financial Risk Experts (ESCB/IO), Frankfurt

Organization: European Central Bank (ECB)

Country: Germany

City: Frankfurt, Germany

Office: ECB Frankfurt

Closing date: Wednesday, 17 February 2021

General Information

Type of contract Short-term contract, which may be extended to up to 36 months subject to individual performance and organisational needs

Contract end date 31.12.2023

Who can apply? EU nationals working for the international public sector organisation or EU organisations performing central banking or banking supervision tasks. Your current contract must extend at least 1 year beyond the end of the potential employment at the ECB

Salary F/G (1) (minimum monthly net salary 4,914 and benefits, see further information section)

Working time Full time

Place of work Frankfurt am Main, Germany

Closing date 17.02.2021

Your team

You will be part of one of the two divisions in the Directorate Risk Management. Our directorate has 56 staff responsible for proposing policies and procedures that ensure an appropriate level of protection against financial risks for (i) the ECB, in the conduct of financial market (i.e. investment) operations, and (ii) the Eurosystem, in the conduct of monetary policy operations.

In the Risk Analysis Division, we measure, assess and report on financial risk exposures arising from the Eurosystem’s monetary policy and emergency liquidity assistance operations, as well as from the ECB’s investment portfolios and pension funds. We also evaluate the financial buffers of the Eurosystem’s central banks against their estimated financial risks. In this regard, we develop, implement and maintain risk management models used to assess and report on the financial risks of the ECB and the Eurosystem. These risk models are tailored around the specific characteristics of ECB exposures, the Eurosystem’s monetary policy instruments and applicable ECB and Eurosystem guidelines.

In the Risk Strategy Division, we design and maintain risk management frameworks and policies for the Eurosystem’s monetary policy operations. This includes (i) defining the financial soundness criterion that applies to counterparties accessing the Eurosystem’s credit operations and reviewing its application, (ii) conducting regular reviews of all credit assessment systems accepted by the Eurosystem’s credit assessment framework, and (iii) validating pricing methodologies applied for Eurosystem collateral valuation. We also analyse structural developments in financial markets and financial regulation, as well as climate change policy, to identify potential implications for the Eurosystem’s risk management frameworks.

We are looking for several financial risk experts to support our teams.

The ECB is an inclusive employer and we strive to reflect the diversity of the population we serve. We encourage you to apply, irrespective of your gender, gender identity, ethnicity, sexual orientation, age, religion, disability or other characteristics.

Your role

As a Financial Risk Expert, you will be called on to carry out one or more of the following tasks:

support the development of a risk control framework and policy for climate change, including developing a financial stress-testing framework for the Eurosystem’s balance sheet, integrating environmental, social and governance/socially responsible investing considerations in the ECB’s investment portfolios, developing climate-related disclosures, and analysing the incorporation of climate change in market prices and credit ratings;
contribute to the analysis of the Eurosystem’s financial risks, including preparing annual reports on financial risks and buffers and on profitability projections, as well as ad hoc assessments of the financial risks from monetary policy and investment operations;
contribute to the preparation of risk management projects in the context of the Eurosystem’s credit operations and non-standard monetary policy measures related to, for example, eligibility requirements, valuations, haircuts and credit assessments;
conduct credit risk analyses in the context of the ECB’s asset purchase programmes, in particular the third covered bond purchase programme (CBPP3), the asset-backed securities purchase programme (ABSPP) and the corporate sector purchase programme (CSPP);
perform risk control tasks for monetary policy and investment exposures, including conducting eligibility assessments; monitoring exposure limits and the quality of prices used for valuation, and developing and maintaining risk control frameworks and infrastructure;
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contribute to the assessment of new credit assessment systems and the development of an internal statistical credit assessment framework for the Eurosystem.

Qualifications, experience and skills

Essential:

a master’s degree or equivalent, preferably in finance, economics or another relevant field ( click here for details on degree equivalences);
experience working in the Eurosystem, ideally in financial risk management, market operations or financial stability;
experience (i) modelling and analysing financial risks, (ii) conducting financial stress testing, or (iii) developing, maintaining and implementing risk control frameworks for monetary policy portfolios or investment portfolios;
a sound understanding of financial instruments, e.g. corporate bonds, sovereign bonds, covered bonds and asset-backed securities;
experience drafting reports, briefings, analytical notes or policy proposals;
IT programming skills (preferably MATLAB or Python) and a willingness to learn data languages (e.g. SQL);
an advanced (C1) command of English and an intermediate (B1) command of at least one other official language of the EU, according to the Common European Framework of Reference for Languages.

You engage collaboratively with others. You pursue team goals and learn willingly from other people’s diverse perspectives. You signal any need for change by explaining it and proposing alternative solutions. You analyse complex information effectively and use analogies, patterns and different perspectives. You know and anticipate stakeholder needs.

You are motivated to be part of our teams and to use your skills and competencies to achieve the objectives of this position.

Further information

The contract(s) offered will be short-term ESCB/IO, the appointment being for at least 12 months as of the exact starting date of the selected person, extendable to up to 36 months.

For additional information on this specific vacancy, you can contact Siobhán Devin (siobhan.devin@ecb.europa.eu), Deputy Head of the Risk Analysis Division, or Vesela Ivanova (vesela.ivanova@ecb.europa.eu), Deputy Head of the Risk Strategy Division, and arrange a phone discussion, if needed.

Application and selection process

The recruitment process for these positions will include interviews via WebEx.