Main Responsibilities of a Capital Risk Management Executive at a Major Bank
Ryan, as a Capital Risk Management Executive, manages a team responsible for ensuring the bank maintains a sufficient capital position to operate effectively in both good and stressful economic times, acting as the "second line of defense" in the bank's risk management framework. Day-to-day responsibilities include "stress testing," reviewing capital positions, understanding business priorities, and evaluating potential risks to the company, essentially "managing the company's financial resources."
Risk Management, Financial Analysis, Capital Adequacy, Banking Regulations, Stress Testing
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Job Title
Company
Undergrad
Grad Programs
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Ryan Almquist
Capital Risk Management Executive
Major North American Bank
Wake Forest University
N/A
Business Management & Admin
Finance (Banking, Fintech, Investing)
Strategic Management and Executive
Video Highlights
1. Managing a team responsible for overseeing the bank's capital position.
2. Providing second line of defense coverage to ensure the bank holds sufficient capital to operate in both good and stressful economic conditions.
3. Responsibilities include stress testing, reviewing the company's capital positions, understanding business priorities, and assessing potential risks to the company.
Transcript
What are your main responsibilities within your role?
Within my role, I manage a team responsible for the bank's capital position. Banks are typically set up with three lines of defense.
The first line is the business itself, along with control functions like finance and HR. The second line is the independent risk management team, which is my team.
The third line of defense is corporate audit. Our team provides second line of defense coverage, ensuring the bank holds enough capital in the right places. This allows us to manage as a going concern, both in good times and during stress.
Capital is essentially net worth or ownership. A well-capitalized bank can absorb losses during stressful periods, like the 2008 financial crisis, so that liability holders, such as depositors, are not impacted.
If the bank issues loans that go bad, those losses are covered by capital, not by depositors. This is the core of my team's day-to-day role.
Our responsibilities include stress testing and reviewing the company's capital positions. We also consider business priorities, such as where businesses might invest or launch new products, and assess the potential risks to the company. Primarily, it's about managing the company's financial resources.
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