<div>Role Title Head &ndash; Risk Management<br /> Reports To CEO<br /> Company Bajaj AMC<br /> Function/ Department Risk<br /> Written By Korn Ferry Advisory<br /> Approved By (Jobholder)<br /> Approved By (Immediate Superior)<br /> Date (written on) March, 2024</div> <div>1. JOB PURPOSE<br /> (Summarize in one statement why the job exists; and how it contributes to the overall objective of the company)<br /> Lead development and implementation of systems and processes for monitoring Investment risk to safeguard against risks<br /> (market, credit, performance, etc.); Interpret and share insights in the medium to long term on changes in limits and<br /> regulations; Lead the enterprise / operations risk framework design and implementation; Ensure timely and accurate reporting<br /> to relevant stakeholders from time to time</div> <div>2. ORGANISATIONAL CHART<br /> (First level reporting chart for the job)</div> <div>Comments:<br /> ▪ Numerical figures represent the total number of incumbents in the role</div> <div>3. PRINCIPAL ACCOUNTABILITIES</div> <div>CEO</div> <div>Head &ndash; Risk Management</div> <div>Management Trainee<br /> (1)</div> <div>Lead - Information<br /> Security Officer (1)</div> <div>Assistant Manager -<br /> Risk Management (1)</div> <div>Manager - Investment<br /> Risk (2)</div> <div>Lead - Risk<br /> Management (1)</div> <div>2</div> <div>(Accountabilities associated with the job)<br /> 1. Investment Risk<br /> ▪ Develop and implement investment risk framework for monitoring and safeguarding against risks in the form of<br /> market risk, liquidity risk, credit risk (for fixed income), non-adherence to fund characteristics, performance risk,<br /> etc. for each of the schemes; Determine end to end process, policies, metrics, etc. while meeting the Board and<br /> regulatory requirements (SEBI risk management Circular, 2021); Detail out and determine processes and<br /> interpretation in line with the broadly defined requirements<br /> ▪ Deploy appropriate tools such as Bloomberg, spreadsheets, dashboards, etc. to monitor investment risks across the<br /> portfolio; Guide daily activities of the team and run analytics and advance analytics, as needed<br /> ▪ Measure performance and risks against benchmarks, highlight red flags in case of major deviations<br /> ▪ Lead reporting based on framework and risk monitoring to fund managers, CIO, regulators and committees at<br /> various frequencies (typically monthly), e.g. value at risk, stress testing, liquidity profiling of portfolio, etc.; Ensure<br /> daily closure of portfolio risk classification as per regulatory requirements<br /> ▪ As Bloomberg system administrator, carry out activities for smooth functioning and availability of the system to<br /> users such as creation of user accounts, rights, resolution of issues, etc.<br /> 2. Investment compliance<br /> ▪ Drive adherence to limits, guidelines and regulations set for investments for individual schemes across equity and<br /> dept portfolio, including both external limits set by the regulator SEBI, Scheme Information Document (SID) and<br /> internal investment guidelines</div> <div>▪ Establish and implement appropriate systems to monitor compliance to limits, guidelines and regulations, pre-<br /> trade/ post trade, etc., such as nature of assets, instruments, etc.</div> <div>▪ Closely track and monitor limits (regulatory limits, passive breaches, etc.) reaching thresholds, internal limits getting<br /> triggered, deep dive to understand under-lying reasons for deviations and approve<br /> ▪ Lead timely and accurate reporting of compliance and breaches, if any, to relevant committees, Board, SEBI, etc. at<br /> set frequencies (monthly, quarterly)<br /> ▪ Oversee implementation of new / changes in limits and regulations, interpret and share insights with investments<br /> team on immediate and long term impact of the same<br /> 3. Operations Risk Management<br /> ▪ Determine the overall operational risk framework, including aspects of identifying risks, risk control, self-control<br /> processes, etc.<br /> ▪ Lead implementation of OR framework and monitor risk cutting across the organization and SEBI prescribed<br /> processes including operations, back-office operations, marketing, product, etc., at set frequencies (daily, monthly,<br /> quarterly)<br /> ▪ Lead implementation of operational risk framework to external processes and operations such as back-office, RTA,<br /> outsourced processes, etc., with stronger focus on customer facing/ impacting processes<br /> ▪ Lead timely and accurate reporting as per functional and regulatory guidelines to relevant stakeholders<br /> 4. Trade Monitoring and Dealing Room Controls<br /> ▪ Determine framework for trade monitoring and dealing room controls in line with the stipulated regulations<br /> ▪ Establish a strong system of controls to create a physically and electronically controlled environment for dealing<br /> room in accordance with regulations<br /> ▪ Listen in and track call records basis a random sample for continuous checks and monitoring<br /> ▪ Guide the Analyst &ndash; Risk Reporting for timely and accurate monitoring, control and reporting, in case of deviations<br /> 5. Team development<br /> ▪ Participate in recruitment process to identify the right talent at key positions within the team<br /> ▪ Cascade objectives, establish individual performance expectations and regularly review individual performance of<br /> the team<br /> ▪ Regular team engagement and mentoring to keep them focused and move in correct direction</div> <div>3</div> <div>▪ Identify and create development opportunities, training, induction sessions, etc. for team members to enhance<br /> functional/ business knowledge</div> <div>4. MAJOR CHALLENGES<br /> (Challenges faced on an on-going basis in carrying out the job)<br /> ▪ Risk Management function in an organization with fiduciary duty and managing people&rsquo;s money has a different<br /> significance and expectation, therefore we have to ensure adherence to regulations at 100% time and fluctuations if any<br /> are to be within regulatory ambit; At all times ensure investments are made as per regulations, and incorporating change<br /> in regulations;<br /> ▪ This is a highly regulated industry, and regulations are multiplying given that the expanding industry<br /> ▪ Educating and enhancing organization&rsquo;s awareness, particularly investments and operations, and bringing them on board<br /> to ensure adherence to policies, ORM framework, etc.<br /> ▪ Constantly balancing and managing expectation of business and extent of risk business can take<br /> ▪ Broadly defined policies / requirements of the SEBI risk management circulars, have to be translated in specific<br /> organizational policies and processes, and further implemented properly</div> <div>5. DECISIONS<br /> (Key decisions taken by job holder at his/her end)<br /> Decisions made by job holder<br /> ▪ Resolution of regulatory queries from various internal department<br /> ▪ Legal agreements to be entered into and relaxations that can be taken<br /> ▪ Define the investment risk and ORM framework, based on regulations and risk appetite<br /> ▪ Governance and implementation of framework, processes and policies for investment risk, risk compliance, operations<br /> risk<br /> ▪ Reporting to board, committees, and regulator</div> <div>6. INTERACTIONS<br /> (Key working relationships a job holder needs to have INSIDE and OUTSIDE the company to accomplish the job)<br /> Internal Clients<br /> Roles you need to interact with inside the organization to enable success in your day to day work<br /> ▪ Investments: To implement risk framework, ensure investment compliance and monitoring, monitor limits and breaches,<br /> reporting<br /> ▪ Operations, back office team &ndash; Implementation of ORM, monitoring compliance and reporting; Observations on issues<br /> related to cash mismatch, limits, evaluation mismatch, etc.<br /> ▪ Compliance &ndash; Routing of communication with SEBI, Board, Risk Committees<br /> ▪ Dealing Room Team &ndash; To ensure compliance related to trade, tracking of calls, etc.</div> <div>External Clients<br /> Roles you need to interact with outside the organization to enable success in your day to day work<br /> ▪ Bloomberg: To aid risk monitoring and deeper analysis of investment related risk in our portfolio, and front office &amp; back<br /> office, through their models and frameworks; Interface for limits and ensuring investment compliance and risk<br /> management<br /> ▪ Registrar and Transaction Agent (RTA): For investor data to undertake further analysis</div> <div>4</div> <div>▪ Custodian and Fund accountant (Deutsche Bank) &ndash; To brief for new requirement</div> <div>7. DIMENSIONS<br /> (Key numerical data which will reflect the scope and scale of activities concerning this job)<br /> Financial Dimensions<br /> (These should be quantifiable numerical amounts).<br /> Other Dimensions<br /> (Significant volume dimensions associated with the job)<br /> ▪ Total Team Size: 4<br /> ▪ Number of Direct Reports: 3</div> <div>8. SKILLS AND KNOWLEDGE<br /> (Minimum acceptable proficiency for this job which best indicates the education and/or experience requirements of this<br /> job and not the incumbent).<br /> Educational Qualifications<br /> a) Qualifications<br /> ▪ MBA in Finance, CFA FRM for financial proficiency<br /> b) Work Experience<br /> ▪ 10-12 years of work experience<br /> ▪ Strong past experience of managing risk function for an AMC<br /> ▪ Good understanding of overall mutual fund industry<br /> ▪ Deep understanding of investment risk as a discipline<br /> ▪ Liason with the board and regulators</div>