About Risk Division Flashcards
What are the divisions?
Credit Risk Enterprise Risk Management Liquidity Risk Market Risk Model Risk Management Operational Risk Risk Engineering
Credit Risk?
Risk that firm takes on due to a counterpart defaulting on a loan/trade
Enterprise Risk Management?
Minimizing risk that affect capital earnings
Liquidity Risk
Overseeing corporate treasuring and moderating risk regarding paying off debts without suffering major loss
Market Risk
Managing risk that affect firm’s P&L due to changing market variables
Model Risk Management
Ensure that that quantitative models can keep above the minimum levels during times of economic stress (Stress testing)
Operational Risk
Mitigating risk due from failed procedures, systems or policies, employee errors, and fraud protection
Risk Engineering
Utilizing robust metrics, softwares, and technologies to calculate risk
Highlighted cultural aspects
- Having part of Marcus’ early phases
- Mentorship programs: giving them insight on technical skills
- Working in a diverse network
- Know what’s going on in the firm through “short talk sessions”
- Affinity networks
- Constant innovation to utilize problem-solving skills
Why do you want to work in Risk?
My first time being exposed to any kind of risk management was working with a local commercial bank in Miami. I had an opportunity to work on annual Debt-Service-Coverage analyses that looked into the credit risk of CRE company’s borrowing $1-10M loans.
I was surprised to learn that my work there wasn’t simply just presenting the ongoing financials of a borrower, but involved intense research and learning about CRE companies in Miami. As a hands-on learned, I’ve always sought the question “Why” when working on projects. Working in the credit department last summer really opened my eyes to how I can use those skills
Moreover, my recent experience at the Hispanic Latino Summit in Jersey City in September allowed me to meet with Risk Associates from Salt Lake City who had very similar experience to working with CRE credit risk. For these reasons I believe I’d fit in very well into the Risk division.
Leadership Style?
I believe I am very diplomatic and concerned about relationships and chemistry within my team
A leader is not what makes a good team, a team is what makes a good team
Moreover, I’m also more hands-on and take more of a micromanager approach
For my credit internship I had to be very attentive to detail when doing DSC and looking at financial statements
Why should we hire you in 3 sentences
Education at UM gives me a unique academic background coming from a culturally diverse campus with strong alumni networks worldwide
Internships from the past two years involving accounting, CB, and PE has given me a dynamic repertoire of experiences that I can use to my advantage
I am an interesting person to e around and able to use my diplomatic/relational skills to bring more cohesiveness to teams small or large
Weaknesses
Despite having good interpersonal skills, I find myself to have lack of communicative skills at times.
For example, I learned that I needed to ask more questions during my Credit internship because a lot of times I would become too independent and put my head down in doing DSC’s by myself –> more time on projects than I should have and cut deadlines close
Made adjustments towards end of internships and spent more time talking to the senior analysts to learn more about my work instead of trying to play hero
Time about being in a team
Was a part of a small team of 4 during my PE internship in order to expedite business development and build a wider portfolio of add-on acquisitions for the firm
We managed our own outreach targets, specifically IB and business brokers and conducted our own due diligence on the firm before contacting the bankers on our CRM
If someone had trouble figuring out how to reach a bank or figuring out if a Bank was still in business, I would make time to help and do additional research to facilitate the process and they would reciprocate
Well-oiled machine and we helped the firm improve their brand awareness and sourced a number of deals for our Head of Origination
Stengths
Recognized as someone with
Ambition/Drive
Interpersonal Skills
Ability to be a utility player
Putting in extra time into my Credit internship when figuring out why Debt-service-coverage ratio was so low and doing extra research to explain to senior associates
Enjoy the thrill of multitasking (transferring from Elon)
