Credit Risk Officer, Credit Risk & Governance

Credit Risk Officer, Credit Risk & Governance

ESM - European Stability Mechanism

Luxembourg

Deadline for application: 12 May 2025

The ESM is looking for a Credit Risk Officer to join our Credit Risk & Governance team in the Risk Management division. This team monitors credit and counterparty credit risks and manages and develops related models and policies for the ESM investment portfolios and funding activities. This happens within the boundaries of the ESM High Level Principles of Risk Management, Risk Policy and Risk Appetite Statement, and Credit Risk Policy. The selected person will work under the guidance of the Lead Senior Officer for the Credit Risk & Governance team and report to the Head of Risk Management.

KEY ACCOUNTABILITIES

• Credit risk identification and control;
• Assess the creditworthiness of financial institutions, sovereigns, government-related agencies, sub-sovereigns, supranational institutions, and other eligible issuers, including analysis of instruments, such as: covered bonds, government guaranteed debt, etc.;
• Propose recommendations on limit amounts;
• Assign and monitor exposure at default (EAD)/settlement limits on derivative counterparties and counterparties for secured money market transactions;
• Identify trends in portfolio concentrations;
• Contribute to emerging risk analysis and ad-hoc risk management projects, as needed;
• Credit risk monitoring and reporting;
• Monitor external indicators and market developments;
• Help to develop and maintain the credit ratings surveillance system;
• Provide second line of defence oversight for Middle Office monitoring and reporting of limits;
• Monitor credit limits/exposures by issuer and conduct regular reporting for the Internal Risk Committee (IRC) and the Board Risk Committee (BRC);
• Monitor and report on portfolios’ creditworthiness (e.g. average rating, expected loss, portfolio metrics Credit Value-at-Risk and Expected Shortfall);
• Provide clear and concise credit risk reports, presentations, and statistics to internal and external stakeholders, including regular reporting to the IRC and BRC;
• Credit risk framework and policies;
• Assist in developing the ESM high level risk policies, within the ESM’s institutional framework;
• Contribute to ESM and EFSF credit risk policies and procedures;
• Support preparations for internal and board level risk committees;
• Work collaboratively with several ESM divisions, such as Funding and Investor Relations, Investment and Treasury, Asset and Liability Management, and Middle and Back Office, for matters related to credit risks and controls.

KEY BACKGROUND & EXPERIENCE

• Advanced university degree in a field such as economics, finance, risk management or quantitative studies;
• At least 2 years of relevant work experience in credit risk or related areas, preferably in an international financial institution or other relevant public institution; maximum 10 years of experience;
• Knowledge of Fitch, S&P, and Moody’s rating systems, is considered an asset;
• Good background in financial analysis modelling;
• A certificate in risk management or financial analysis (FRM, PRM, CFA) is considered an asset;
• Advanced Excel skills, familiarity with PowerBI and programming skills such as Python is considered an asset;
• Excellent written and verbal communication skills in English.

KEY COMPETENCIES

• Good analytical and conceptual skills;
• Attention to detail, with rigorous approach;
• Innovative thinking;
• Critical and strategic thinking;
• Risk awareness and management;
• Communication and interpersonal skills;
• Developing self and others.

APPLICATION PROCESS AND PRACTICAL INFORMATION

• Deadline for application: 12 May 2025;
• Employment grade: Officer;
• Contract duration: Four years, with possibility of extension;
• Place of employment: Luxembourg;
• Current working arrangements: possibility to work remotely, usually up to two days a week, from Luxembourg and the border region (or from further away under certain conditions).

The ESM strives to provide equal opportunity to all candidates irrespective of their gender, nationality, age, race, culture, education, religious beliefs, sexual orientation, or disability. To further enhance the diversity of our workforce, we particularly encourage women to apply.

Note 1: the ESM reserves the right to refrain from hiring, or to slightly modify job responsibilities, as needed.

Note 2: As a result of the selection process, please note that you may be placed on a ‘reserve list’ valid for a duration of six months during which you might be considered for a similar position with a similar level of requirements. Only those candidates who have been notified will be placed on the ‘reserve list.’ After this period, you will need to apply again for our vacancies to be considered for a different selection process.

About Us

The European Stability Mechanism (ESM) is the permanent crisis resolution mechanism for euro area countries. It provides financial assistance to Members facing financing difficulties. To date, the ESM and its predecessor organisation, the European Financial Stability Facility (EFSF), have launched six financial assistance programmes to five countries, provided financial support, monitored repayment capacity, and engaged with partner institutions for programme design in areas of financial interest.

The ESM is a unique place to work with around 230 individuals committed to making a difference to the future of the euro area. It recruits talented professionals of any nationality from both the private and public sectors. The ESM’s senior management is committed to preserving and enhancing a diverse, inclusive recruitment and work environment.

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