General Manager Risk and Compliance

Document Sample
General Manager Risk and Compliance Powered By Docstoc
					                                   ROLE DESCRIPTION
Position Title       General Manager Risk and Compliance


Location             Melbourne                      Division   Finance

Reports to (Title)   Finance
Approved by
                     Immediate Manager      Chief Financial Officer (Kevin Holmes)

                     HR Business            HR Business Partner, Finance
                     Partner                (Belynda Mooney)

                     Next Level Manager     Managing Director (Richard McIndoe)
                     (if appropriate)

The Risk and Compliance function within TRUenergy exists to deliver an effective
framework for managing the risk of operating in the energy markets and to ensure the
company has a comprehensive compliance framework. The position requires strong
leadership to direct reports through the provision of advice and guidance and through
coaching to achieve agreed targets.

The Head of Risk and Compliance is responsible for;
  Development and maintenance of an Enterprise Wide Risk Management framework,
   (EWRF) including risk assessment and top-tier risk reporting processes
  A clear and effective Risk Management Policy, supported by procedures and processes
  Develop and maintain a Compliance Management System for retail and wholesale
   market compliance, ensuring employees are aware of their responsibilities with regards
   to compliance issues
  Reporting and communication of risks, exposures and compliance with policy in a
   timely manner to the appropriate forums
  Management of the Energy and Treasury Middle Office function
  Wholesale Credit Risk Management
  Facilitating and developing organisational Business Contingency capability
  Management and optimisation of the company’s insurance requirements
  Independent Project Reviews and Project Risk Assessment
  Co-Ordinate and facilitate the TRUenergy Investment Committee process
  Chairman of the Risk Consultative Committee
  Responsible Manager for AFSL Licence
  Coordination of post project implementation reviews
  Provide strong leadership to direct reports through providing advice and guidance and
   through coaching to achieve agreed targets

This includes the management of professional and other staff and the influencing and
collaboration with others in the delivery of the above objectives.

The incumbent will;
  Undertake these functions with an emphasis on transactional excellence, quality and
   relevance of information and analysis and the application of appropriate principles and
  Create an environment that drives a process of continuous improvement in practices
   and outputs
  Develop and foster close working relationships within the business to facilitate the
   accurate and timely flow of information and supporting analysis.

This role provides the opportunity to develop an in depth understanding of TRUenergy’s
business across all Business Units.

 Financial Dimensions (Please use annual figures wherever possible)

 Responsible for delivering a framework for managing the risks associated with operating in
 the energy markets. The various risks are quantified by the Risk Team and range between
 approximately $10m and $100m.

 Responsible for independent valuation of energy derivatives with a total mark-to-market
 value of approximately $100m or more.

 Personal Dimensions (People reporting to this position)

 Internal Control Manager
 The Manager, Internal Control is responsible for developing suitable controls for operational
risks, assurance mapping, business continuity planning and maintaining the Internal Control
Framework (ICF). The ICF has been developed from SOX and is used to manage the risk of
misstatement in the financials.

 Manager, Enterprise Risk

 The Manager, Enterprise Risk is responsible for raising the enterprise risk consciousness
 across the organisation and ensuring that all aspects of risks are identified and appropriately
 managed in accordance with agreed frameworks and policies.

 Insurance Manager

 The Insurance Manager is responsible for managing the placement of TRUenergy’s business-
 wide insurance program with a view to optimising coverage to best support the
 organisation’s needs. The manager will work with management, the board and our
 shareholder to design and implement the company’s insurance program.

 Manager, Risk Analytics

 This role is responsible for quantification of wholesale price risk, position monitoring,
 reporting against risk limits, forward curve construction and valuation of derivatives, and the
 identification and monitoring of activities undertaken by Energy Markets and Treasury that
 could create or potentially create credit risk. The Risk Manager also maintains the Energy
 Risk Policy, the Treasury Risk Policy and the Wholesale Credit Risk Policy to ensure continued
 relevance and accuracy, and advises staff of their obligations under these policies.

 Environmental Reporting Manager

 The Environmental Reporting Manager is responsible for ensuring that TRUenergy is
 compliant with the NGERS Act and will manage the risk associated with TRUenergy’s
 Renewable portfolio.

 Commercial Support and Compliance Manager
 This role is responsible for documentation and compliance, including ISDAs, TRUenergy’s
 Mandate, brokers and futures clearer agreements, and AFSL compliance.

 Number of Staff           Direct Reports          Through                 Total
                                     6                     15                        21
                             PRINCIPAL ACCOUNTABILITIES

Principal Accountabilities                                  Measures of Performance

Enterprise Risk Framework
   Oversee TRUenergy’s Enterprise Risk Framework           Culture of risk management observed
    aligned to best practice                                across all business units
    A clear and effective Risk Management Policy,          Risk identification processes are
    supported by procedures and processes                   developed, implemented and are used
                                                            effectively by staff across the business
   Maintenance of a comprehensive compliance
                                                            Risk register contains accurate and
                                                            timely risk data and status.
   Independent Project Reviews and Post
                                                            Top-Tier risks reported to the RMC and
    Implementation Reviews
                                                            RCC in accordance with the Enterprise
                                                            Risk Policy

Internal Control Framework
   Oversee the identification of operational risks and
    development of suitable controls to mitigate the        Compliance within agreed targets for
    level of risk                                           the current period
   Oversee the Assurance Mapping process to identify       Provision of a co-ordinated and
    control gaps/weaknesses in key business processes       professional BCP service to
   Ensure the regular testing of ICF controls              stakeholders throughout the business
   Oversee the development and maintenance of an           Policy Framework update annually for
    effective Business Contingency Planning capability      new and changed policies

   Ensure the Internal Control Policy is maintained

   Oversee the optimisation of the company’s               Demonstrated engagement
    insurance requirements                                  stakeholders and business risk owners
    Ensure claims are managed timely and in the nest       Review of existing limits, policy cover,
    interests of the company                                group arrangements, etc, to validate
   Ensure relationships with insurers, underwriters and    existing assumptions underlying past
                                                            insurance cover to identify and
    brokers are professional
                                                            address gaps that may arise
                                                            Timely and effective management of
                                                            claims as they arise

Provide Risk Assurance to Key Stakeholders
   Oversee TRUenergy’s risk management framework           Favourable feedback from key
    for managing the portfolio of derivative, generation,   stakeholders on quality of
    retail, gas and renewable contracts                     presentations and way meetings and
   Report risks and compliance with Policy and limits to   reviews are handled
    key stakeholders and committees                         Reporting of risks and policy
   Member of the Risk Consultative Committee               compliance on a timely basis

   Present on risk management to ratings agencies,         Risk Policies reviewed at least once
    audit committees and banks                              per year and remain accurate and
   Manage audit and risk review recommendations
                                                            All identified risk review and audit
                                                            recommendations addressed
Measure and Report Market Risk
   Develop and implement position reports and              Risk measures and reports are
    measures of market risk                                 calculated correctly and are easy to
   Continue to enhance measures and reports to
    ensure consistency and to increase focus on key         Derivative valuation is performed
    risks                                                   accurately and on a timely basis

   Report compliance with market risk limits               Valuation process is SOX compliant

   Independently value energy derivatives and green        Forward curve, valuation and risk
                                                            measure process documentation
    transactions for mark-to-market purposes
                                                            remains up to date, with regular
                                                            review and back testing to ensure

Manage Wholesale Credit Risk
   Develop and implement exposure reports and              Credit reports are calculated correctly
    measures of wholesale credit risk                       and are easy to understand
   Continue to enhance measures and reports to             Compliance with credit risk limits is
    ensure consistency and to increase focus on key         reported on a timely basis
    risks                                                   Credit support issues are dealt with
   Report compliance with credit risk limits               pro-actively

   Deal with credit support issues

Investment Appraisal
   Responsible for ensuring Independent Project            Favourable feedback from key
    Reviews are carried out in accordance with the          stakeholders on quality of reports
    Investment Policy and the Risk Policies                 Demonstrated engagement with the
   Responsible for undertaking Post Investment             business and project teams through
    Reviews as requested by the CFO                         the process

Manage ISDA and Energy Market Contract                      Appropriate ISDAs and other
Documentation                                               documentation in place
   Manage ISDA Master Agreements and novations             Documentation for new product
    with counterparties                                     transactions is in place and
   Develop appropriate documentation for new energy        appropriate to the counterparty with
    market product transactions                             whom TRUenergy is transacting and
                                                            mitigates credit and legal risk for

Administer EnergyPoint and Deal Capture Process
   Oversee the operation of the deal capture process to    Deal capture process is effective at
    ensure that role of Front, Middle and Back Office are   accurately capturing relevant
    understood by all.                                      information
   Administer EnergyPoint and any in-house systems         EnergyPoint and all related data
    developed to ensure calculations and reports are        systems are operating effectively.
    working correctly.

Develop and maintain a comprehensive                        Retail compliance framework
compliance framework                                        operating effectively
   Oversee retail compliance framework                     AFSL and AML/CTF compliance
   Oversee AFSL and AML/CTF compliance framework           framework operating effectively

   Oversee renewables and carbon-related scheme            Green compliance framework
    compliance framework                                    operating effectively

Lead Risk Team
   Provide leadership for the Risk and Compliance          Team morale is good and team is
        Team                                                   operating effectively
       Set direction and vision for the group, recruit &      Low rates of turnover in risk and
        retain key staff, manage performance, prioritise       compliance team
        workload                                               High scores on employee opinion
       Communicate team’s achievements and influence          survey
        senior management to facilitate achievement of
        team’s objectives,
       Work as part of the Finance leadership team to
        achieve the Finance objectives

     Play an active and supportive role as a member            Regular and positive feedback
      of the team                                                from your manager and team
     Proactively participates as part of the overall
      team and initiates and implements ideas that              Demonstrated support for team
      assist the team as a whole                                 members and team activities
     Always communicates across the team to share
      knowledge and information
     Is known amongst the team as a great team
      player and someone to go to for information

    Corporate Values
    Support the overall effectiveness of the business           Feedback from team/or
    by:                                                          internal/external customers to
                                                                 demonstrate values
     Modelling behaviours consistent with TRUenergy’s
      values and brand attributes                               Full compliance with Code of
                                                                 Conduct and company policies
     Complying with and supporting TRUenergy’s Code
      of Conduct and policies                                   Demonstrated support for team
                                                                 members and team activities
     Proactively engaging in performance and career
      development processes                                     No compliance breaches
     Complying with regulatory, health and safety and
      environmental requirements


-       Freedom to Act

The incumbent has specific responsibilities and authority as listed in the General Risk
Policy, Energy Risk Policy, Credit Risk Policy, AFSL Compliance Policy and as a Responsible
Officer for TRUenergy. These include:

Risk Management Policy
Responsible for:
        i. Implementation, and catalyst for the continual improvement of, the Risk
               Management Policy.
        ii. Development of the risk management culture and capability within TRUenergy.
        iii. Independent Monitoring & Reporting of compliance with the Risk Management
        iv. Development of a procedure for, and facilitation of, the Risk Assessment Process.
        v. Supporting business units and the RCC by maintaining, or providing access to,
              expertise in a broad range of risk management and monitoring disciplines.

Enterprise Risk Policy
        i. Development of a procedure for, and facilitation of the “Top Tier” reporting
              process, including quality assurance that reporting is complete and reflects the
              company’s Top Tier risks.
        ii. Maintaining Risk Registers as required by the Risk Management Policy.
Energy Risk Policy
Responsible for:
      i. Prices, methodologies, models, systems and processes for independent valuation
              of transactions for the purpose of risk reporting and MtM accounting.
      ii. Methodologies, models, systems and processes for calculating and reporting
             energy market risk measures.
      iii. Establishing and maintaining robust systems, processes and procedures for
              entering into and recording deals. Process controls include recordings of
              transactions made over the telephone, procedures for dealing on and off the
              premises, and timely and accurate entry into TRUenergy’s contract database.
      iv. Establishing and maintaining processes for capturing and validating data,
             including input of data from business units, used for preparation of exposure
      v. Developing and approving procedural documentation for items i-iv above, subject
            to requirements in Section 4.6 of the Energy Risk Policy.

Wholesale Credit Risk Policy
Responsible for approving the status of Electricity and Renewables Trading, Gas Supply,
large Industrial and Commercial Sales and Treasury counterparties and the credit limits for
these counterparties where these are less than or equal to the indicative limits in Appendix
2 of this Policy (up to $110m, depending on credit rating.

Financial Services Laws and AFSL Compliance Policy
Responsible for monitoring that the various obligations under TRUenergy’s AFSL have been

AML/CTF Compliance Program
Responsible for monitoring that the various obligations under the Anti-Money Laundering
and Counter-Terrorist Financing Act have been met, and that the compliance program is
effective and efficient.

Responsible Manager
In relation to TRUenergy’s AFSL, the incumbent, as a responsible manager, performs
duties in connection with the holding of the licence. Responsible officers are the people
the company and ASIC rely on for organisational competency. A responsible manager
        is directly responsible for significant day-to-day business decisions about ongoing
         provision of financial services;
        is of good fame and character; and
        has the qualifications and experience to meet one of the alternatives listed in
         paragraph [PS 164.104C] of Policy Statement 164 Licensing: Organisational


 Internal /                         Who                              Frequency of contact

 Internal     Risk Management Committee and Risk                 Regular
              Consultative Committee,

 Internal     Senior managers and key personnel in all           Frequent
              business units

 External     Government, regulatory and other entities          Regular
              involved in business contingency planning

 External     Insurance brokers, insurance underwriters and      Regular

Education Level: Minimum required for the role - (Actual or Equivalent)

   Tertiary qualifications in a numerate field (most likely engineering, finance or economics)
   Postgraduate qualifications in business


   Superior analytical ability and problem solving skills
   Excellent oral and written communication skills
   Conceptual thinker, able to work with through and solve ambiguous problems
   Ability to undertake multiple concurrent projects and meet deadlines
   Sound interpersonal and teamwork skills
   Advanced Excel
   Advanced Access / SQL

   Approximately 10 years experience in deregulated energy or financial markets
   Excellent understanding of competitive energy markets and their economic and technological
   Demonstrated record of achievement in risk management
   Experience in managing people and project teams
   Proven leadership skills in a large organisation

Special Requirements
   Able to become a Responsible Office for AFSL Compliance purposes
   Become a member of TRUenergy’s Risk Consultative Committee and TRUenergy’s Risk
    Management Committee

Shared By: