Specialist Debt Pricing

at Absa
Location Johannesburg, South Africa
Date Posted Sep 26, 2019
Category Accounting Finance Jobs
Job Type Full-time

Description

The overall purpose of this role is to take responsibility for the maintenance, enhancement, education and governance of the ABB pricing tools, guidelines, procedures and frameworks in order to ensure consistent, competitive and sound pricing to enable and support business to make optimal debt pricing decisions that is aligned with the latest strategy and in support of balance sheet optimisation.

 
 
Key Accountabilities:
 

Accountability: Reporting and Analytics

  • Provide relevant business unit heads, ABB pricing committees, product managers and other pricing stakeholders with relevant, accurate and timely pricing reports on a monthly, quarterly or annual basis or as may be agreed with the Manager Pricing.
  • Conduct research and analyse data to identify pricing trends and forecasts.
  • Support other group functions/functional areas in optimisation initiatives, e.g. reduction of high-unutilised limits with a risk of draw down and/or fee charged for unutilized facilities.
  • Compile business performance reports by focusing on key business drivers for inclusion in business and Exco reports.
  • Review business performance reports, provide commentary on the reports, discuss, and assist the relevant business partners with the interpretation and the understanding of the reports.
  • Assist in running with projects where a deeper understanding of the performance reports is needed.
  • Provide sectoral heat maps and sectoral pricing strategies based on the current portfolio composition and economic outlook analysis.
  • Review Capital Risk drivers to aid the early identification of deteriorating portfolio trends and issues with specific counterparties.
  • Develop Key Risk Indicator (KRI) EC triggers for products and sectors, through research and consultant with the various Heads: Segment (ABB) and Head: Sectors (ABB) and oversee the monitoring/management these by reviewing relevant MI on a regular basis.
  • Contribute to actions from GRCB Centre / Group Initiatives relating to ABB capital management.
  • Understand the Basel II “Use test” requirements relating to pricing and ensure that pricing tools are in support of this.

Accountability: Pricing Governance 

  • Enable and support a culture of risk based debt pricing across ABB.
  • Monitor alignment to pricing tools, policies, frameworks and principles across ABB sales force and related users of pricing tools.
  • Conduct regular pricing compliance reviews/audits and develop a report with recommendations and findings. (The reviews/audits must cover adherence to principles, frameworks, calculators, and importantly procedural compliance).
  • Engage relevant stakeholders and managers on areas of non-compliance and areas where there is a high level of compliance in order to identify lessons learnt, good practice and provide advice on areas for improvement.
  • Guide areas with compliance challenges on corrective actions and next steps.
  • Monitor pricing adherence trends and report findings and recommendations to the manager.

Accountability: Pricing approach enhancement and maintenance 

  • Proactively load pricing information for new products in order to ensure that the pricing tool is always updated in accordance with developments.
  • Support new development and enhancement to the VAMP pricing tool by engaging the relevant stakeholders and project managing the changes.
  • Collaborate with treasury in a regular basis to ensure pricing calculator is aligned with latest funding rates and approved policies for liquidity premiums applicable to new and existing deals.
  • Provide specifications for updates to VAMP pricing tool to ensure alignment to AIRB capital calculation to ensure compliance with use test (i.e. same principles applied in capital calculation than in pricing decision making);Providing clear requirements to developer.
  • Manage timing of updates to pricing tool to align with rollout of updates to EAD & LGD model.
  • Test changes on test server to ensure accuracy and provide approval for putting changes in production.
  • Participate on projects to integrate EAD & LGD model with VAPM pricing tool to eliminate duplication of effort by Relationship Executives.
  • Comply with model governance principles, i.e. keep clear record/audit trail of testing.
  • Test monthly updates of new risk cost and customer contribution of the new month to pricing calculator to ensure integrity of output.
  • Assist ABB training to update training manuals with latest changes on pricing tool as and when applicable.
  • Participate in pricing and related projects and initiatives to ensure industry leading service and tools.

Accountability: Pricing Support Services

  • Develop a close working relationship with relationship managers, product support staff and senior management to ensure they understand the pricing frameworks, tools and requirements.
  • Provide technical advice and support to all ABB stakeholders on Debt pricing structures.
  • Support Relationship Executives in pricing decisions by providing advice and technical recommendations.
  • Train REs to use the pricing calculator to enhance integrity of required inputs and delivery best practice pricing to clients.
  • Increase understanding of drivers, rules and principles applied in the EAD & LGD model (ongoing), i.e. explain drivers of risk cost and assist REs to obtain and improve understand the credit risk principles by answering pricing queries. This should include interactions in person, via telephone and e-mail.
  • Enable and assist REs to build self-confidence to use pricing tool independently.
  • Prioritise deals; agree realistic turnaround times within available capacity that meet exceptions of REs with 48 hour as a target turnaround time.
  • Apply a practical approach to complex transactions in order to provide practical advice to all stakeholders.
  • Use team members as a soundboard and in an advisory capacity to derive a practical solution/approach.
  • Maintain a friendly and professional attitude when assisting REs, enabling REs to use pricing tool independently.
  • Participate in Pricing Exception Committee (PEC) and provide decision support to members of PEC.
  • Review submissions for technical accuracy.
  • Confirm and validate important factors to be considered with team members, credit modelling team and credit colleagues and bring it to the attention of decision makers at Pricing Exception Committee.
  • Evaluate exceptions and approve/decline pricing decisions within mandate of debt pricing team.
  • Support development of and enhancement to pricing policies.
  • Participate in the setting of the minimum pricing policy guidelines through the calculation of it as well as the discussions with stakeholders and management.
     

Accountability: Teamwork and Self Development

  • Provide on the job training to new team members to assist them with principles applied in debt pricing decisions; in depth understanding of drivers of credit risk cost (LGD, PD, EAD & CCF) and the use of/operating the pricing calculator.
  • Provide ongoing advice and training to RE’s and regional stakeholders to be able to use and understand rules and principles applied in EAD & LGD model (ongoing).
  • Have discussions with management and relevant business partners through meetings to support continuous improvement in the pricing team.
  • Stay abreast of developments in pricing and the industry to ensure that own development stays relevant and that stakeholders view the team as though leaders.
  • Contribute the team performance by providing assistance to colleagues, supporting internal projects and contributing constructively to team initiatives.
  • Drive and direct own development together with managers and share own knowledge with the team.
  • Review the pricing team value proposition and service on a continuous basis and make recommendations to the Manager.
  • Adhere to and stay abreast of Absa HR policies and compliance requirements relevant to the role.

Competencies:

  • Persuading and influencing
  • Presenting and communicating information
  • Applying expertise and technology
  • Creating and innovating
  • Learning and researching
  • Analysing
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