Manager, Residual Value Risk
City : Toronto, Ontario
Category : Direct Hire
Industry : Recruitment/Staffing
Employer : The Adecco Group
This position is responsible for managing HCCA’s residual value (RV) risk by measuring/monitoring losses and exposures for the lease portfolio, conducting root cause analysis, and driving change where necessary. They will act as a subject-matter expert by taking the lead on presenting current RV performance and providing insights on future expectations to internal and external stakeholders. In addition to this, they will work cross-functionally with various teams to prepare HCCA for future risks associated with a decline in used vehicle values. Some of the other key tasks this role will cover include preparing RV loss projections/simulations, managing the RV loss provision, maintaining the RV risk policies/procedures, monitoring market trends, supporting Sales initiatives, and exploring ways to improve the forecasting of used vehicle prices.
Duties and Responsibilities:
- 1. Residual Value Risk Monitoring & Forecasting
- Conduct monthly reporting and analysis of residual value trends and key performance indicators.
- Complete assessment of portfolio residual risk through mark-to-market data analysis, develop process and analytics to monitor forecasted residuals to actual performances (back-testing), prepare edition-over-edition comparisons of guidebook residual values, and determine implications on business strategy.
- Simulate RV loss under various market scenarios and establish RV Loss Mitigation Playbook in collaboration with Sales Planning, Remarketing, and OEM partners to develop action plans for deteriorating market conditions and outlook.
- Lead the forecasting and strategic planning process for all RV Risk related metrics, including the yearly operating plan, mid-month financial estimate, and mid-year financial estimate.
- Provide insight on and analyze the impact of auto industry trends that affect the lease portfolio at HCCA, with emphasis on used vehicle market trends, wholesale price movements, and growing EV/green vehicle segment.
- Investigate, collect, and analyze auto industry and economic information affecting residual values, including but not limited to, economic trends forecasts, new and used car markets, emerging technology, and competitor vehicles and sales.
- Liaise with the Sales Planning, Finance, and Operations departments at HCCA to ensure proper coordination on key topics related to RV Risk.
- Act as the main point of contact on all RV topics for both the Global and Regional Risk Teams.
- Complete assessment of RV risk at origination through Loss-on-Disposal (LOD) analysis. Manage periodic update of LOD calculation for pricing assumptions. Develop adequate LOD assumptions on new vehicle launches where no historical data exists. Review and analyze implications of residual risk on product and pricing proposals.
- Monitor monthly movements in the RV risk provision and evaluate reserve adequacy on a regular cadence. Refresh the provision assumptions on a yearly basis, or sooner if external indicators suggest an update is needed.
- Work with the Finance and Global/Regional Risk Teams to ensure provision assumptions are valid, and secure approval from the Risk Control Committee (RCC) on all RV related items affecting the company’s P&L statement.
- Liaise with external auditors to ensure provision models are properly governed and adhere to the relevant accounting standards
- 3. Lease Product Development
- Collaborate with the Sales Planning team to assist in continuing to refine the Lease product. Support initiatives to help capture market share and increase retention, including the periodic launch of new vehicle models.
- Manage the Residual Value Setting Policy and identify potential enhancements to the current policy where needed. Monitor the used vehicle forecasts provided by the guidebooks and develop insights on key residual value trends, including the impacts on lease program competitiveness.
- Support EV and Mobility topics from an RV Risk perspective.
- 5+ years of experience in risk management or related functions within the financial services industry
- 5+ years related auto finance/captive finance/bank industry experience
- Residual Risk Management experience is highly preferred
- Bachelor’s degree in Business Administration, Mathematics, Economics, Operations Research, Statistics, Computer Science or related quantitative experience
- Strong analytical, critical thinking, problem solving, and decision-making skills with a good eye for detail
- Solid oral and written communication skills with the ability to negotiate and explain complex topics concisely
- Effective organization and prioritization skills to manage multiple priorities effectively
- Ability to understand Risk business metrics/KPIs/objectives and their relationship to the importance of individual projects
- Awareness of the principles of effective project management, risk mitigation, risk management and governance
- Strong PC skills: Excel, Word, PowerPoint, SAS, SQL, Microsoft Access, and relational database concepts
Apply now to this Manager, Residual Value Risk for immediate employment consideration and the Adecco Recruiter will be in touch with you soon.
Our client is committed to acknowledge applications from people with disabilities. Accommodations are available on request for candidates taking part in all aspects of the selection process.