The Credit Risk Division Head is responsible for managing and overseeing credit risk within a financing company. This role ensures effective management of credit risks by establishing policies and procedures, assessing and monitoring the credit portfolio, and maintaining a balance between risk and profitability in financing operations.
Key Responsibilities:
Policy Development and Implementation:
- Design, develop, and implement credit risk policies that align with regulations and the company’s needs.
- Review and update credit policies and procedures regularly.
Credit Risk Portfolio Management:
- Analyze and monitor the credit portfolio to identify and mitigate significant credit risks.
- Develop risk mitigation strategies to minimize potential losses.
Credit Assessment and Approval:
- Oversee the risk assessment process for financing applications.
- Provide credit approval recommendations for high-risk or complex financing cases.
- Manage the escalation process for credit decisions that require higher-level authorization.
Risk Analysis and Reporting:
- Provide regular reports on credit portfolio quality, potential risks, and credit-related business performance.
- Develop and monitor Key Risk Indicators (KRIs) to predict potential risk increases.
Cross-Department Collaboration:
- Work closely with marketing, operations, legal, and compliance teams to ensure credit decisions align with business targets and regulatory requirements.
- Educate other teams on credit risk policies and practices.
Regulation and Compliance:
- Ensure that all credit risk activities comply with Financial Services Authority (OJK) regulations and other relevant authorities.
- Maintain good relationships with regulators and external auditors regarding credit risk matters.
Team Development:
- Lead, train, and develop the credit risk team to enhance their skills in credit risk analysis and portfolio management.
- Identify training needs for the team and ensure the implementation of relevant training programs.
Qualifications:
- Bachelor’s degree in Finance, Economics, Accounting, or related fields. A Master’s degree is preferred.
- Minimum of 7-10 years of experience in credit risk management, particularly in financing or banking sectors.
- Strong understanding of credit analysis, risk policies, and portfolio management.
- Excellent analytical and communication skills.
- Strong leadership and team management abilities.
- Knowledge of credit risk regulations and standards from OJK and relevant authorities.
Key Competencies:
- Analytical Thinking: Ability to analyze complex information and make informed decisions regarding credit risk.
- Leadership: Capability to lead a team in a dynamic and high-risk environment.
- Communication: Ability to clearly convey ideas and reports to both internal and external stakeholders.
- Attention to Detail: Focus on the quality of data and information used in risk analysis.
