Market Risk Management
The Market Risk Management department (MRM) is one of the 3 pillars of the Risk Control and Management functions at ING Luxembourg that report directly to the Chief Risk Officer.
What does it do?
Its main task is to identify, assess/evaluate, manage and report market risks on a daily basis (exchange rate risk, liquidity risk, bond and equity risk, etc.) within the bank. Accordingly, the MRM department advises Management on the desired level of risk-taking and manages risk independently in order to avoid (unpleasant) surprises connected with trading activities and volatility in the Bank’s interest rate margin.
MRM therefore collaborates closely with the Financial Market Department, because this department either works at the point where market risks are initiated, via Financial Markets trading activity (FM) or is in charge of managing and hedging risk, via Bank Treasury banking activity (BT). MRM is also in regular contact with Financial Markets Support (as a partner in the Financial Markets and Bank Treasury value chain) and Finance (in connection with the production and reliability of financial statements).
MRM also provides the necessary support to the various commercial functions (Commercial, Retail and Private Banking) in order to transfer their risk to Bank Treasury in an optimal manner and a controlled regulatory environment. Lastly, MRM has an advisory role vis-à-vis the Management Board to ensure that strategic decisions are in line with the bank’s risk appetite.
Organisationally speaking, the MRM department is made up of 2 units: Product & Control in charge of monitoring and relative analysis of market risk, and Risk Regulation & Modelling in charge of monitoring and implementing regulations and modelling the Bank’s risk.