Chief Risk Officer (CRO) The Chief Risk Officer (CRO) will report directly to the EVP, CFO, Treasurer & Risk Management. The CRO will be a member of the Executive Team and will work closely with the Chief Executive Officer, Chief Financial Officer and General Counsel to coordinate PJM's enterprise risk management operations, including evaluating, identifying, managing, reporting, responding to and overseeing risks externally and internally to the organization. The CRO provides independent oversight of strategic, operational, financial, market, regulatory, cyber and reputational risks, and advises leadership and the Board on emerging and systemic risks that could affect grid reliability, market outcomes or stakeholder confidence. The CRO will focus on developing approaches to mitigate, prevent and respond to risk to the PJM enterprise. Specifically the CRO will drive efficient and effective governance of market and credit risk, collateral management, underwriting corporate insurance, trade risk and analytics, model validation, and quantitative analytics. The CRO will account for assessing and mitigating credit and payment default risk to PJM's wholesale markets and will define and oversee methods to monitor market participant behavior including position trends in all markets.
Essential Functions:- The CRO will establish and maintain credibility and trust with the PJM Executive Team and cross-functional stakeholders.
- The CRO will utilize collaboration, compromise, influence, leadership, negotiation, consensus building and overall communication methods to challenge the status quo in an effort to ensure an understanding of the risks facing PJM and the prevention, mitigation and response of such risks.
- The CRO will engage with existing staff functions of Credit, Model Validation, and Enterprise Risk Management to develop and enhance the Market Trade Risk capabilities.
- The CRO will perform a thorough assessment of the current state of:
- Credit, Model Validation and Enterprise Risk Management functions
- Organizational design and determine if changes needed to make the risk function more effective
- Available technology appropriate for implementing the risk function
- As defined and approved by the CEO, the CRO will determine:
- Appropriate risk controls
- Appropriate methodologies for risk measurements and internal process changes needed for risk measurement and reporting
- Develop effective communications and consensus building with Members and Regulators to gain acceptance of proposed changes to enhance risk management, such as:
- Reviewing and improving credit requirements
- Reviewing and improving new member acceptance processes
- Resolving conflicts that may arise in the stakeholder process regarding such processes
- Development of comprehensive market participant surveillance processes that monitor participant's trading activity, market positions, margins, trends and behaviors.
- Develop processes and strategies to highlight notable or abnormal market participation positions or trends with a process for communication within and across the enterprise, specifically ensuring the CEO is aware in a timely fashion of actual or potential risks and material/significant risks
Oversee market and counterparty risk analyses which will involve development of new market risk analytics and credit & collateral risk analytics systems and processes with a process for communication within and across PJM, specifically ensuring the CEO is aware of actual or potential material and/or significant risk items in a timely fashion.
Lead the Risk Management Committee to address credit and risk management issues by attending all meetings and preparing and reviewing all content of the meeting
Review credit and collateral requirements for Members while providing oversight to review models to ensure participant behavior is monitored with appropriate follow up and metrics and communicated to CEO, CFO, General Counsel and Members in a timely manner
Provide oversight of extensive quantitative analysis to simulate various scenarios and test the proposed risks against real-time events to provide data for better and informed decision making
Provide oversight of the development of automated risk reports and risk tracking processes to streamline daily risk reporting and position indicators
Coordinate enterprise risks across the organization for PJM, our employees, reputation, assets and interests of Stakeholders and Members
Establish risk appetite, risk tolerance levels, and key risk indicators in coordination with executive leadership and the Board.
Facilitate risk management mitigation methodology to execute and control the risk strategy by partnering with the relevant business areas to identify the critical risks, and provide a comprehensive risk inventory
Advise, solicit feedback and offer recommendations to internal teams based on knowledge and information gained through the risk management methodology process
Present recommendations and analysis on credit risk management practices and engage key Stakeholders within the PJM community to gain consensus on key recommendations to protect from default risk
Prepare supporting materials for FERC filings and contribute to FERC filings as needed.
Provide recommendations, updates and detailed reports to CEO and the Risk and Audit Committee of the PJM Board of Managers
Comply with applicable audits of policy and compliance to standards, including liaison with internal and external auditors
Provide support, education and training to staff to build risk awareness within the organization
Provide independent risk perspectives on stakeholder filings, market rule changes, and enforcement matters.
Evaluate systemic market risks and unintended consequences of market reforms or regulatory mandates.
All other duties as assigned or requested by the CFO or CEO.Characteristics and Qualifications:
Required:
Bachelor's degree in Business Administration, Economics, Finance or At least 10 years of experience as Risk Management Officer 10+ years of leadership experience in a managerial/supervisory role.15+ years of leadership experience in a managerial/supervisory role. Extensive credit and financial risk management skills and analytical experience Extensive risk management and financial markets background Demonstrated effective communications skills and advocacy/influencing ability Demonstrated collaboration skills (internal and cross-divisional)
Preferred: MBA, Business Administration
Experience with PJM Agreements and Tariffs Experience with PJM operations, markets, and planning functions Experience supporting any of PJM Committees
