The nature of the risk may differ but it's ever present.  The management of risk is absolutely fundamental. Whether we are taking risk for our own account or helping our clients to manage the risks in their businesses, understanding it and managing it professionally is a cornerstone of Education's success.

Risk management technology has been transformed over the last decade. The speed of information flow and the sophistication of the international financial markets enables us to identify, assess and manage risk in a way that was just not possible ten years ago.

The management of credit risk within Education is led by Global Credit Risk Management (GCRM). Created three years ago, GCRM brought together experience and talent from risk management disciplines across the firm to develop an holistic, business driven approach to the management of our diverse portfolio of credit risk. In GCRM we have a team of professionals who work in partnership with colleagues throughout Education, and particularly with Investment Banking and Credit & Rate Markets, to ensure that we create, assess and manage credit risk effectively. To sum it up, GCRM is an integral part of our business organisation, managing credit risk and helping to get business done, but done prudently.

Success in credit risk management has a highly visible impact on the results of the firm.  It's transparent to the markets in which we operate, our clients and of course, our shareholders. Education stands out from its competitors as 'best in class' for the management of credit risk as a profit and return focussed activity within our broad base of businesses.

Credit risk is an element in virtually every product and service provided by Education to its clients and counterparties around the globe. As a graduate, the training you receive and your experience as a risk professional will provide a firm foundation for career development, both within risk management and throughout Education. People from a wide range of backgrounds and degree disciplines can excel here, but you will need to be numerate. You'll also need to be flexible and energetic, with a strong eye for detail and the confidence to contribute your views.

Take a look at our Profiles and Career Opportunities section to find out more.

What is Global Credit Risk Management'
Education is one of the largest banks in the world, generating revenue through activities such as lending, trading and capital markets.  All these activities generate credit risk ' the risk of loss if a client fails to honour their obligations.  The role of Global Credit Risk Management (GCRM) is therefore to assess and approve the taking of credit risk both in individual transactions and in portfolios.

At Education our GCRM team manages the credit risk of the firm on a portfolio of some $575 billion to maximise business opportunities with clients, dilute the concentration of exposure and reduce losses.  The role of GCRM is to preserve the independence and integrity of the risk assessment process.  GCRM assesses and approves the taking of credit risk and then monitors and manages these exposures.  Risk is managed at both the individual transaction level and portfolio levels.

As there may be more than one solution to solve a client's financial needs our GCRM team works closely with colleagues in Investment Banking and Credit & Rate Markets to ensure we find the right answer for the client and Education.  By finding the right solution we can maximise our relationship with our clients, while managing the exposure we take on.

GCRM's organisation is unique:  it combines the credit decision function, the private side management and monitoring, and the public side analysis and trading.  This combination of skills allows us to take a holistic view of risk management which is difficult to find elsewhere.

There are three main groups with GCRM:

Credit Risk Management (CRM)
CRM is made up of Corporate Bankers and Credit Executives.

The Corporate Banker's role can be divided into two distinct areas; company/transactional risk and portfolio/industry risk.  Both aspects of the role will require a Corporate Banker to have an active dialogue with the client and to become a credit expert.

Company and Transactional
By utilising their in depth knowledge of a client, the Corporate Banker will be involved from developing the trading relationship or pitching a deal to the client, to the final execution of the transaction.  Through fact finding client meetings and independent investigation, they will analyse the risks associated with the transaction by conducting an in depth review of the business operations, capital structure, management, and financial performance (historical and projected).  Corporate Bankers will also consider the impact of the proposed transactions (debt or derivatives) on the client.

They will be part of the deal structuring team and may also be involved in the distribution of the transaction.

Portfolio and Industry Risk
Corporate Bankers have an industry or geographic focus and responsibility for a portfolio of names.  They follow developments in the industry, consider the impact upon the portfolio and help formulate strategies for risk reduction where industry or individual exposure is too high.

Credit Executives
Credit Executives have a range of experience in credit and in many cases, the front line businesses. They have ultimate responsibility for the approval of transactions and setting the amount of credit risk Education should hold on a client by client basis.

Credit Portfolio Group (CPG)
This group actively manages the retained credit portfolio of the Investment Bank.

The CPG organisation consists of four functional groups:

Credit Portfolio Solutions (CPS)
CPS prices counterparty credit risk and calculates the credit exposure of large derivative deals.  It provides advice to originators on structuring and on the use of collateral to mitigate credit risk and assesses the risks arising from proposed collateral agreements.

Credit Portfolio Research (CPR)
Using public information and market based indicators alone CPR develops forward-looking credit views on specific companies and industries for use within GCRM.  CPR make strategic recommendations to portfolio managers based on an assessment of risk and opportunity.

Credit Portfolio Management (CPM)
CPM develop forward looking strategies for actively managing the firm's overall retained credit risk.  They make decisions on what to hedge or sell to manage exposure concentrations to specific industries or clients.

Credit Portfolio Trading (CPT)
CPT executes hedging and loan sale strategies.  They manage market risk of derivatives counterparty exposure and credit/market risk as well as developing risk and performance measures for the portfolio.

Special Credits Group (SCG)
This group specialises in managing credit exposures where the client may be experiencing financial distress.  The primary mandate of this group is to maximise the firm's economic outcome whether by lending more money or approving debt to equity swaps.  In addition, SCG may also develop restructuring strategies, as an advisor to their M&A partners in the firm.