Head - Policy & Risk - Unsecured Lending

Head of Policy and Risk - Unsecured Lending

Role Overview:

We are seeking a highly experienced and strategic Head of Policy and Risk to lead and oversee the development, implementation, and maintenance of robust policies and risk management frameworks. This critical leadership role will be responsible for ensuring the lending portfolio operates within acceptable risk parameters, complies with all relevant regulations, and supports the company's ambitious growth objectives in this sector. The ideal candidate will be a seasoned risk management professional with a deep understanding of unsecured lending products, processes, and the unique risk challenges associated with them. They will possess strong leadership skills, the ability to influence stakeholders, and a proven track record of building and managing effective risk and policy teams within a lending environment.

Responsibilities:

Lending Policy Development and Implementation:

- Develop, review, and maintain comprehensive lending policies, procedures, and guidelines specifically tailored for unsecured lending products (e.g., Business Loan, Supply chain Financing, Personal loans, BNPL etc).

- Ensure policies are aligned with the company's risk appetite for lending, business strategy, and all applicable regulatory requirements (RBI guidelines, KYC/AML regulations, digital lending guidelines, etc.).

- Establish processes for policy exceptions, approvals, and tracking

Risk Management and Mitigation:

- Design, implement, and continuously improve the lending risk management framework, including risk identification, assessment, measurement, monitoring, and reporting specific to this portfolio.

- Develop and monitor key risk indicators (KRIs) and metrics relevant to lending performance and risk (e.g., delinquency rates, charge-off rates, fraud rates).

- Conduct regular risk assessments and stress testing exercises focused on the vulnerabilities inherent in lending and ensure adequate capital allocation.

Regulatory Compliance :

- Stay abreast of all relevant lending regulations, with a specific focus on those impacting unsecured lending and digital lending practices.

- Ensure the company's lending operations are fully compliant with all applicable regulations.

- Manage relationships with regulatory bodies and coordinate responses to regulatory inquiries and audits

Credit Risk Management:

- Develop and validate credit scoring models and underwriting guidelines

- Establish and monitor credit limits and exposure controls

- Analyze the performance of the lending portfolio, identifying trends and potential areas of concern unique to this asset class.

- Develop and implement strategies for managing and mitigating credit losses in lending portfolio.

Operational Risk Management:

- Identify and assess operational risks specific to the lending lifecycle, including digital onboarding processes, fraud vulnerabilities, and collection challenges.

- Develop and implement controls to mitigate operational risks within the lending function.

Stakeholder Management :

- Collaborate effectively with other departments involved in lending, including Credit, Operations, Technology, Marketing, and Collections, to ensure alignment on risk and policy matters.

- Present risk and policy updates related to the loan portfolio to senior management and relevant committees.

- Provide guidance and support to business units on the interpretation and application of lending policies.

Reporting and Analysis :

- Develop and present regular reports on the lending portfolio's risk profile, policy adherence, and regulatory compliance.

- Provide insightful analysis and recommendations to senior management on risk trends and potential mitigation strategies

Qualifications:

- Chartered Accountant Preferred

- 6+ years of progressive experience in risk management within the financial services industry, with a significant and demonstrable focus on unsecured lending.

- Proven experience in developing and implementing lending policies and risk management frameworks

- Deep understanding of various unsecured lending products (e.g., personal loans, credit cards, BNPL), credit underwriting principles for unsecured borrowers, and loan servicing and collection processes.

- In-depth knowledge of relevant Indian banking regulations and compliance requirements, with a strong emphasis on those related to digital lending (RBI guidelines, KYC/AML, digital lending guidelines, etc.).

- Experience in developing and monitoring key risk indicators (KRIs) and risk metrics relevant to unsecured lending performance.

- Excellent analytical, problem-solving, and decision-making skills, particularly in the context of high-volume, low-ticket unsecured lending.

- Strong leadership, communication (written and verbal), and interpersonal skills.

- Ability to influence and collaborate effectively with stakeholders at all levels involved in the unsecured lending business.

- Proficiency in data analysis tools and techniques relevant to large unsecured lending datasets.

Preferred Qualifications:

- Relevant professional certifications (e.g., FRM, PRM).

- Experience with risk management software and systems used in lending environments.

- Familiarity with advanced analytics and machine learning techniques for credit risk assessment in unsecured lending.