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Manager, Residual Value Risk

Job Highlights

City Toronto

Type Direct Hire

Salary $105,000

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About the Company
Our client is an international automotive finance company. They are looking for a Manager, Residual Value Risk to join their team!

Why Work Here

• Work for a great company, with tons of opportunity for career development and progression
• Flexible working arrangements with ability to work from home and office.
• Competitive compensation package which includes an RRSP matching program, wellness fund, car subsidy program, and much more.

About the Opportunity
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, 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 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

2. Provision and Pricing Model Development & Maintenance

• 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.

About You

• Bachelor’s degree in Business Administration, Mathematics, Economics, Operations Research, Statistics, Computer Science or related quantitative experience
• 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
• 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

Salary Range
$85,000 to $110,000/year

How to Apply
Click the “Apply Now” button and follow the instructions to submit your resume. Please know that we only accept documents in MS Word or Rich Text formats. When referencing this job, quote #406452.

You must currently reside within the Greater Toronto Area and be permitted to work in Canada to be considered for this opportunity. A recruiter will be in touch with you if your profile meets our client’s requirements for this role.