Role: Director, Portfolio Review Location: Singapore Reporting to: Chief Risk Officer Overview
The Portfolio Risk Director will play a crucial role in managing the Portfolio Risk team at Temasek, reporting directly to the Chief Risk Officer (CRO). The team's primary responsibility is to assess and mitigate the potential impact of significant macro or geopolitical events on Temasek's extensive portfolio, valued at SGD 382 billion as of March 31, 2023. The Director will lead the team in anticipating and preparing for unpriced exogenous shocks, contributing to the overall risk management efforts of the organisation.
- Portfolio Risk Management:
- Oversee the Portfolio Risk team in analysing and evaluating the potential risks associated with Temasek's illiquid equity portfolio
- Develop and implement risk appetite assessment processes by modeling drawdown and income impacts of adverse scenarios
- Create a suite of stress scenarios and narrative visualisations to effectively communicate potential risks to senior management and the Board
- Model market impacts at the portfolio, sector, and single stock levels to inform risk appetite discussions
- Monitoring and Alerting:
- Monitor market risk conditions and promptly alert senior management to significant shifts in environmental conditions
- Provide recommendations to the CRO and Chief Investment Officer (CIO) based on analysis and findings
- Contribute to tactical and strategic asset allocation decisions based on risk assessment outcomes
- Ad Hoc Projects and Continuous Improvement:
- Engage in ad hoc projects of portfolio-level significance, including scenario analysis based on historical periods or upcoming events with high potential impact
- Continuously refine and enhance risk modeling and processes, encouraging innovation and creativity within the team
- Play a pivotal role in shaping the team's work and direction, with significant visibility of results within Temasek
The ideal candidate has
Risk Management Unit
- a Masters level qualification in Finance or Economics, or related disciplines
- at least 15 years of professional experience as a major investment manager or asset owner, or on the sell-side covering such entities
- a creative and curious mind, willing to learn, experiment, and occasionally fail
- strong understanding of macroeconomic factors and geopolitical events impacting financial markets
- the ability to think off consensus and generate plausible, consistent scenarios describing low probability high impact events
- a working understanding of the principles and practice of portfolio construction in the context of entities like Temasek
- excellent communication skills and the ability to develop arguments based on an appropriate degree of analysis, to convey complex risk concepts to senior management and the Board members
- an understanding of corporate valuation techniques
- good coaching and development skills to build an excellent team
- the ability to collaborate and engage effectively within the team and across the organisation
Portfolio Risk sits within the Risk Management Unit, along with the Market Risk, Credit Risk, and Investment Review teams.
The Market Risk and Credit Risk team performs quantitative assessments of portfolio risks (e.g. factor and VAR analysis) and has operating control over Temasek's use of derivatives. The team also manages credit exposure to banks and other trading counterparties.
The Investment Review team provides independent evaluations of proposals to invest in private and publicly listed companies. The team's work focuses predominantly on equity investments, and occasionally debt and fund investments, and is increasingly engaged in reviewing the performance of portfolio companies post-investment.
The leads of each of the teams are at the Director level and also report to the CRO, who reports directly to the CEO.
This role will work collaboratively with his or her peer directors, and the rest of the Risk Management Unit. Portfolio Strategy and Risk Group
RMU forms part of the Portfolio Strategy and Risk Group, which actively guides the firm's investment activities and drives sustainable returns, while protecting the portfolio and the institution. Reporting to the Chief Investment Officer, the group actively explores overlay and alternative portfolio strategies to enhance our portfolio returns. RMU is engaged in close and continuous dialogue within PSRG, and this role will participate in and contribute to ongoing discussions on Temasek's tactical and strategic positioning.