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Dir, Loss Provision and Stress Testing in New York at PayPal

Date Posted: 10/25/2020

Job Snapshot

  • Employee Type:
    Full-Time
  • Location:
    New York
  • Job Type:
  • Experience:
    Not Specified
  • Date Posted:
    10/25/2020
  • Job ID:
    R0060662

Job Description

Fueled by a fundamental belief that having access to financial services creates opportunity, PayPal (NASDAQ: PYPL) is committed to democratizing financial services and empowering people and businesses to join and thrive in the global economy. Our open digital payments platform gives PayPal’s 325 million active account holders the confidence to connect and transact in new and powerful ways, whether they are online, on a mobile device, in an app, or in person. Through a combination of technological innovation and strategic partnerships, PayPal creates better ways to manage and move money, and offers choice and flexibility when sending payments, paying or getting paid. Available in more than 200 markets around the world, the PayPal platform, including Braintree, Venmo and Xoom enables consumers and merchants to receive money in more than 100 currencies, withdraw funds in 56 currencies and hold balances in their PayPal accounts in 25 currencies.

The Director, Loss Reserve & Stress Test Oversight will report to the VP, Head of Financial & Model Risk, and will have global accountability for PayPal’s Loss Provision & Stress test governance and oversight.

This role covers 4 areas of oversight:

  • Credit Provision – CECL/IFRS9
  • Transaction loss provision – Buyers/sellers
  • Stress test/Recession readiness – previously hired a consultant to manage this area
  • Loss Forecast - including validation of 5YP, annual loss budgeting process and assumptions used

Loss Provision Governance for Credit and Transaction Losses:

Define and establish firmwide governance framework for Credit and Transaction losses and execute & deliver on that vision:

  • Maintain the global framework for Loss Reserve and Model Overlays including establishing governance, standards and processes globally
  • Provide effective challenge and oversight to Loss provision/overlay methodology and the calculation of provision movement
  • Work closely with Accounting, Finance and Risk teams to ensure approach taken is aligned with framework; validate calculation of provisions by assessing and testing the models and data to ensure accuracy
  • Identify Provision model limitations (ie. assumptions, methodology, overlays etc), recommend remediation and monitor to ensure gaps are closed with appropriate actions taken
  • Work in cross functional team and provide thought leadership on issues/limitations related to provision model methodology/calculations, and guide the discussion to provide governance and solutions to the issues
  • Develop training and awareness for wider stakeholder community
  • Monitoring and testing the provision calculation process within a defined tolerance
  • Support development of a series of key risk indicators and other reporting that will be leveraged for senior management, committees, and board levels

Stress test/Recession readiness

Define Stress test framework, including framework design and validation/execution of the stress tests, with focus on impact to PayPal P&L and Balance sheet:

  • Partner and work with cross functional teams (Finance, Treasury, BP& A, FLOD Risk teams) to determine systemic and idiosyncratic stress scenarios (eg. consider the validity of using moderate recession and protracted slump guidelines from Moody’s or Fed data for systemic stress etc).
  • Engage with Finance and Risk teams to incorporate stress scenarios in annual Corporate planning
  • Develop and update Recession framework and ensure leading KRIs and agreed action plans are being monitored at agreed frequency in authorized committees

Loss Forecast Oversight

Provide oversight and effective challenges to monthly and long term (5YP) loss forecasts by assessing reasonableness of scenario assumptions used in the models. Partner with Risk and Finance teams in the annual budgeting process to ensure losses are adequately budgeted (i.e. assess the model assumptions including forward looking macroeconomic conditions, the maturity of internal Risk controls and market conditions etc. in the loss forecast process)

Candidate Profile

This candidate will also need to build strong relationships with PayPal business partners in First lines and within the GEM & Oversight organization to be effectively positioned to assess, communicate and provide governance for Loss Provision process, and present to various management committees and boards.

  • This leader will work effectively in a complex, fast-paced matrix environment, replete with tight deliverable timeframes and multiple stakeholders, both internal and external.
  • This position is expected to act independently and demonstrate strong initiative.
  • This leader needs to influence outcomes, minimize and address conflict and demonstrate in-depth understanding of compliance and operational risks.
  • The role requires a sense of urgency, passion for results, and personal accountability for achievement.

Experience:

The role requires a senior and seasoned risk leader preferably with a deep banking background, a senior risk leader with broad modeling & Risk Management accountability at a large complex financial institution.  From a cultural perspective, this leader will need to fit into the PayPal leadership model that will require strong financial acumen, self-confidence and the ability to push back but in a respectful manner.

  • Experience leading the Risk quantitative function within a multidivisional, complex organization where business process and data integrity are critical. Ideally, expertise in high transaction, data intensive, consumer-lending environments.
  • The role requires sophisticated model risk skills and expertise in CECL/IFRS9 (lifetime loss calculation); candidates must have led a sizeable risk function for a bank or financial services business.
  • Experience in leading a coherent loss reserve function which has produced strong governance and controls. This must include an understanding of building and operating a loss provision and stress test frameworks that deliver transparent, well-understood results for stakeholders.
  • A track record as an established leader who is equally strategic as they are tactical, and of the stature to build a peer relationship with stakeholders. This will enable them to build a fully functionalized risk process with robust and transparent leadership.

Performance and Personal Competencies:

Setting Strategy

  • The ability to create and articulate an inspiring vision for the organization, not only for the areas s/he is directly responsible for, but the enterprise as a whole.
  • The inclination to seek and analyze data from a variety of sources to support decisions and to align others with the organization's overall strategy.
  • An entrepreneurial and creative approach to developing new, innovative ideas that will stretch the organization and push the boundaries within the industry.
  • The ability to effectively balance the desire/need for broad change with an understanding of how much change the organization is capable of handling, to create realistic goals and implementation plans that are achievable and successful.

Executing for Results

  • The ability to set clear and challenging goals while committing the organization to improved performance; tenacious and accountable in driving results.
  • Comfortable with ambiguity and uncertainly; the ability to adapt nimbly and lead others through complex situations.
  • Seeks data and input from others to foresee possible threats or unintended circumstances from decisions; someone who takes smart risks.
  • A leader who is viewed by others as having a high degree of integrity and forethought in his/her approach to making decisions; the ability to act in a transparent and consistent manner while always taking into account what is best for the organization.

Leading Teams

  • The ability to attract and recruit top talent, motivate the team, delegate effectively, celebrate diversity within the team, and manage performance; widely viewed as a strong developer of others.
  • The ability to persevere in the face of challenges and exhibit a steadfast resolve and relentless commitment to higher standards, which commands respect from followers.
  • A leader who is self-reflective and aware of his/her own limitations; leads by example and drives the organization's performance with an attitude of continuous improvement by being open to feedback and self-improvement.

We're a purpose-driven company whose beliefs are the foundation for how we conduct business every day. We hold ourselves to our One Team Behaviors which demand that we hold the highest ethical standards, to empower an open and diverse workplace, and strive to treat everyone who is touched by our business with dignity and respect. Our employees challenge the status quo, ask questions, and find solutions. We want to break down barriers to financial empowerment. Join us as we change the way the world defines financial freedom.

PayPal provides equal employment opportunity (EEO) to all persons regardless of age, color, national origin, citizenship status, physical or mental disability, race, religion, creed, gender, sex, pregnancy, sexual orientation, gender identity and/or expression, genetic information, marital status, status with regard to public assistance, veteran status, or any other characteristic protected by federal, state or local law. In addition, PayPal will provide reasonable accommodations for qualified individuals with disabilities. If you are unable to submit an application because of incompatible assistive technology or a disability, please contact us at paypalglobaltalentacquisition@paypal.com.

R0060662