The Impact of ESG on Retail Banking Risk Analytics
As regulations evolve, retail banking risk analytics will need to develop and deploy sustainability-related data models and data analysis tools to support risk management activities. This position requires working with business units to define business requirements for sustainable data analysis, and create sustainable quantitative data models and tools.
The retail banking risk analytics position will also be responsible for tracking clients’ decarbonization plans to ensure the bank’s sustainability commitments are being met, ultimately identifying, monitoring and mitigating sustainability and compliance risks.
Related Post: Singapore Releases Sustainable Finance Jobs Transformation Map
How to Apply ESG in Retail Banking Risk Analytics
Retail banking risk analytics position may apply ESG in the following tasks:
| Key Points | Tasks |
| Develop and manage data models for risk and compliance | 1. Actively cooperate with business departments to ensure that quantitative solutions meet sustainable development business requirements 2. Supervise the establishment and testing of quantitative models 3. Conduct quality assurance, stress testing and regular reviews of approved sustainable data models and algorithms 4. Supervise and perform user acceptance testing (UAT) of sustainable data models 5. Guide, implement and monitor the use of sustainable models in accordance with established procedures 6. Develop and maintain user requirements, parameters and configurations for sustainable models |
| Manage the documentation and reporting of risk and compliance data analytics | 1. Supervise, implement and support sustainability-related risk solutions 2. Report monitoring and analysis of sustainable data models based on standardized requirements 3. Develop sustainability report summaries and communicate data analysis results, benchmarking and trend analysis to stakeholders 4. Analyze, record and report on sustainable regulatory compliance 5. Develop sustainability reporting dashboards suitable for senior management to present data analysis result |
| Supervise risk and compliance data analytics and model usage | 1. Set direction for rules, parameters and standards for sustainable data analytics 2. Develop data collection and data mining related technologies and methods for sustainable data analysis 3. Prepare preliminary interpretations of sustainability data for non-technical reports to feed back results to stakeholders 4. Emphasize the risks of sustainable models that may affect data analysis results 5. Identify and describe business use cases for sustainable models 6. Identify and evaluate automated processes for sustainable data analysis and monitoring and seek approval from senior management |
| Support the implementation and use of risk and compliance models and data analytics | 1. Build and validate data sets used for sustainable data analysis 2. Oversee the implementation and application of the sustainability model in organizational infrastructure implementation 3. Maintain, update and ensure documentation supports the use of sustainable models and analysis 4. Develop training programs to improve employee skills related to sustainability analytics 5. Manage internal stakeholder-related solutions throughout the sustainability cycle |
Retail banking risk analytics position will require the application of skills related to climate change management, natural capital management, sustainability risk management, impact indicators, measurement and reporting.
Reference:
Monetary Authority of Singapore
Institute of Banking and Finance Singapore
