Managing Director - U.S. Consumer Risk

Application Deadline:
03/30/2024
Address:
320 S Canal Street
Job Family Group:
Audit, Risk & Compliance
The U.S. Consumer business at Bank of Montreal has been transformed with the recent acquisition of Bank of the West. We are now on a multi year journey to modernize and scale the US Consumer business with an aspiration to significantly grow over the next few years. Currently, we offer multiple products including Mortgage, Home Equity, Indirect RV/Marine, Credit Card, Other Direct, Business Banking and Deposits.
We are seeking a Managing Director to join the U.S. Consumer Risk team. This is people leadership position within the 2nd line of defense, which will report into the Head of U.S. Consumer Risk and will be responsible for providing independent risk oversight over the various lines of businesses. The incumbent should be a strategic thinker with sound business acumen and a passion for using advanced data and analytics to make business decisions. This is a fantastic opportunity for someone to continue evolving the risk management framework, 2nd line control and oversight processes and discipline around consumer lending as BMO pivots towards a Category 3 bank in US. The incumbent will work closely with heads of the businesses and staff groups to fulfill the growth vision and ensure adequate controls are in place to meet the risk appetite for the business. This is a highly visible role with substantial interaction with multiple stakeholders including senior management and regulators.
Specific responsibilities include:

• Provides independent risk oversight of the consumer lending businesses in U.S. P&BB, ensuring credit risks are appropriately and prudently managed within the risk tolerance for this business.
• Ensures the quality, performance, and credit risk profile of the U.S. P&BB retail portfolio are monitored and reported to Senior Executive, management committees, and RMC on a timely basis.
• Provides transparency and insight into the bank's risk appetite to enable the business unit to understand and optimize risk return trade-offs within enterprise risk tolerances, while reinforcing the principle that business units are accountable for all their risks.
• Presents value-added risk context, oversight of credit risk systems, models, scorecards, credit exception underwriting, return on capital risk assessments to support strategic business planning and new product development risk assessment.
• Acts as the risk stripe owner for consumer credit risk in the U.S. and provides the required leadership and strategic direction. Executing within the constraints defined in Corporate Policies and Corporate Standards, approves, and recommends scorecards, approves credit underwriting exceptions for all consumer credit transactions for U.S. P&BB, approves and recommends automated adjudication, and approval of new products or processes related to consumer lending.
• Ensures Bank's credit risk taking policies, authority structures, procedures and processes are adhered to through direct involvement in credit transaction authorizations and portfolio management processes.
• Directs the development and implementation of proper quantitative reporting and analytic tools and processes across all U.S. Consumer loan portfolios. Leads, synthesizes, and communicates the analysis of data to proactively identify and understand the drivers of portfolio risk, and forecast portfolio performance.
• Works with key executives within ERPM, and the U.S. P&BB Consumer/Wealth Management line of business, to direct the quality, performance, and respective credit risk profile of this significant business segment. Interfaces closely with other consumer credit risk roles within ERPM. Serves as primary point of contact for the line of business in all related product initiatives and discussions pertaining to setting the optimal risk appetite by providing independent risk oversight and ensuring that growth initiatives are optimized for profitability; both risk and return.
• Ensures the documentation and delivery of accurate, concise reporting of levels and trends in material risks, emerging risks, asset quality, Key Risk Indicators (KRIs) and risk limits. Defines Consumer credit risk strategies and ensures credit risk-related operating procedures are consistent across all Consumer portfolios, and in alignment with applicable policies and standards. Leads the deep quantitative analysis of data to proactively identify and understand the drivers of portfolio risk and forecast portfolio performance.

Additional Accountabilities:

• Provides independent oversight on the performance of U.S. Consumer credit risk strategies, monitor trends, and identify risks and opportunities.
• Leads the execution of in-depth statistical analysis of portfolio data to support recommendations to enhance the portfolio risk-return profile. Ensures consistency in analytics and reporting across all consumer products.
• Maintains an understanding of current applicable regulatory requirements for consumer loans, anticipates the impact of regulatory changes to portfolio management activities and monitoring and communicates regulatory issues and requirements to ensure U.S. Consumer Credit function is well equipped to manage credit risk
• Identifies risk and opportunities from current portfolio trends, ensure comprehensive analyses are performed to dimension portfolio risk concerns, as well as identify root cause drivers. Applies understanding of trends to recommend changes in portfolio strategies.
• Establishes and maintains appropriate scorecards, KRI metrics, and portfolio caps in order to effectively manage the risk inherent in the U.S. Consumer portfolio.
• Monitors portfolios in aggregate and within key segments to effectively manage exposure to higher risk borrower segments.
• Serve as an escalation point for the resolution of the most complex issues identified through the Consumer portfolio monitoring process.
• Drives proactive improvements in Risk Appetite processes to improve portfolio financial performance.
• Develops forward looking forecasts of portfolio trends and performance to enable early detection of emerging risks and development of risk mitigation plans.
• Oversees the development and execution of policies and procedures for portfolio monitoring, ensuring policies are aligned with Consumer Lending and Small Business goals and that the strategies and guidelines reflect the risk appetite established by the enterprise.
• Applies expertise in portfolio performance and current economic and regulatory environments to advise changes to underwriting guidelines.
• Offers insights and recommendations to senior risk management to modify or create policies, procedures and any other risk management efforts related to consumer loan portfolios.
• Provides consumer loan portfolio governance and oversight to LOB management regarding the development and execution of LOB strategies. Applies in-depth understanding of portfolio performance and risk drivers to recommend alternatives and direction.
• Approves LOB product and program development through established processes, in accordance with Bank and regulatory standards and requirements. Provides Consumer Risk perspective into marketing efforts and product pricing strategies based on portfolio performance and risk analyses.
• Collaborates with LOB personnel to support the effective introduction and communication of new strategies and products. Serves as a Consumer Risk resource by providing additional information and responding to questions.
• Provides independent, timely, objective credit adjudication decisions on Consumer and Small Commercial transactions within assigned credit limits including policy exceptions.
• Communicates effectively with line employees to ensure rationale and decision is clearly understood.
• Supports line of business in growing a profitable Retail loan portfolio while ensuring that the credit granting provided is within the Bank's risk tolerance.
• Provides credit expertise in support of credit policy and process initiatives.
• Identifies any potential gaps in the Retail lending process and works with the line of business to resolve.
• Provides leadership and guidance to a team of highly technical Portfolio Risk Management and Consumer Credit personnel within a culture that promotes continuous learning/development opportunities.
• Recruits, leads, manages and develops a diverse team of Portfolio Risk Management and Consumer Credit professionals using effective training, performance assessment and coaching techniques.
• Provides planning, leadership and direction to employees in order to align tasks and assignments with Consumer Risk Management and Bank goals and objectives.
• Applies the Bank's performance management system to subordinates, including establishing goals and objectives, assessing skills and knowledge gaps, allocating resources to achieve objectives and close gaps, and assessing personal effectiveness.
• Models and encourages appropriate high-performance behaviors to ensure behaviors within the team are congruent with BMO's values and culture.
• Ensures the effective implementation of Bank initiatives and programs through the establishment of appropriate context and setting of direction for direct reports by providing relevant information, establishing goals, and setting limits with the context and prescribed limits of the group head.

Skills and Knowledge:

• MBA or Masters/PhD level quantitative degree (i.e., statistics, mathematics, economics, finance, operations research, engineering, or another related field
• 15+ years of deep Consumer risk and portfolio management experience
• 10+ years of experience of line relationship/transactional credit and consumer underwriting experience
• 10+ years of managing a team of highly analytical, quantitative, and technical resources
• Credit qualified
• Requires a unique combination of Consumer credit granting, BMO lending processes, analytic capabilities, and strong communication skills to oversee the development of policy and automated decision strategies that are optimized to perform within the bank's approved Risk Appetite and that provides improved financial gain and/or reduces financial loss as well as to communicate any changes to executives across U.S. P&BB
• Advanced knowledge of Consumer Basel and the necessary elements of maintaining regulatory compliance
• Advanced knowledge of credit methodology, risk-return optimization and capital management
• Excellent understanding of linkage between Credit risk strategies and Bank's financial management
• Expert knowledge of Consumer credit analysis including understanding and application of behavioural scorecards and analytics
• In depth knowledge of complex consumer credit transactions with regard to underwriting, loan structure, documentation, and origination channel
• In depth knowledge of applicable regulatory and Bank policies and procedures related to consumer lending
• Expertise in data analysis systems and data mining tools, such as SAS, SQL, R, Knowledge Seeker
• Ability to manage team who use advanced highly quantitative techniques to access and analyze data from source systems
• Advanced knowledge of Credit Policies and processes
• In-depth knowledge of Risk Management theory, processes, and portfolio management reporting techniques
• Familiarity with government regulations relating to Consumer and Small Business credit activities and Consumer Reporting requirements
• Strong, proven leadership agility and highly developed Consumer portfolio management skills
• Synthesises, integrates, and weighs multiple considerations including logistical, professional, and competitive factors in key Consumer Risk decisions
• Highly and well developed analytical, quantitative, statistical, and problem-solving skills within a financial institution
• Ability to influence others
• Ability to understand the dynamics and implications of economic cycles in order to manage the Consumer portfolio effectively
• Strategic skillset necessary to forecast portfolio performance, build out function and partner with the line of business
• Expert analytical/systems thinking and conceptual/strategic thinking with the ability to executive upon identified and unidentified needs

Please note the target base salary range for this specific position is noted as a range from $214,000USD to $240,000 USD
Compensation and Benefits:
The base salary represents BMO Financial Group's hiring range for this position. Actual salaries will vary and will be based on various factors, such as location, skills, experience, and qualification for the role. Salaries for part-time roles will be pro-rated based on number of hours regularly worked.
Base salary is one component of BMO Financial Group's total compensation package for employees, which may include performance-based incentives, commissions or discretionary bonuses, as well as other perks and rewards. BMO also offers health insurance, tuition reimbursement, accident and life insurance, and retirement savings plans. To view more details of our benefits, please visit: www.bmousbenefits.com.
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At BMO we are driven by a shared Purpose: Boldly Grow the Good in business and life. It calls on us to create lasting, positive change for our customers, our communities and our people. By working together, innovating and pushing boundaries, we transform lives and businesses, and power economic growth around the world.
As a member of the BMO team you are valued, respected and heard, and you have more ways to grow and make an impact. We strive to help you make an impact from day one - for yourself and our customers. We'll support you with the tools and resources you need to reach new milestones, as you help our customers reach theirs. From in-depth training and coaching, to manager support and network-building opportunities, we'll help you gain valuable experience, and broaden your skillset.
To find out more visit us at http://jobs.bmo.com/us/en
BMO is committed to an inclusive, equitable and accessible workplace. By learning from each other's differences, we gain strength through our people and our perspectives. BMO is an equal opportunity/affirmative action employer. All qualified applicants will receive consideration for employment without regard to sex, gender identity, sexual orientation, race, color, rel...