Connected-Counterparty Exposure Reporting Recovery Authority — Corporate Banking

The mandate

A supervisory review found that legal counterparties, groups of connected clients and economic dependencies are assembled differently in onboarding, credit and regulatory reporting. Guarantees, undrawn commitments, derivatives and collateral use inconsistent identifiers and exposure measures, while manual grouping overrides lack review dates. The reporting head left before the bank could demonstrate complete population and timely threshold escalation.

The interim starts within two weeks for twelve months, spanning containment, supervisory milestones, four quarterly returns and permanent-head certification. Incorporation, ownership change, guarantee, common funding signal, client distress, facility amendment or collateral change is a mandatory reporting trigger. Eight weeks are ring-fenced for handover; the assignment cannot extend into wholesale credit-underwriting redesign.

Exit requires one counterparty and connected-group population, evidenced control and economic-dependency links, source-to-return lineage, reconciled exposure measures, governed exemptions and mitigation, controlled overrides, threshold alerts and four returns within tolerance. The successor must adjudicate an unseen cross-guarantee network and distressed common-funder case before an internal supervisory panel.

The leader may hold incomplete exposure returns, require business certifications, freeze expired group overrides, direct remediation sequencing, assign temporary data owners and approve ₹750 million within the authorised recovery budget. Credit committees retain lending and grouping approvals where prescribed; Risk owns methodology; Finance owns submission; Compliance interprets supervisory obligations; regulators and assurance teams remain independent.

Loan origination, credit pricing, recovery strategy, customer remediation, legal entity restructuring and replacement of the bank’s master-data platform are outside scope. The interim may correct identifiers and interfaces necessary for reporting but cannot redefine commercial relationships without evidence. Missing connectedness facts and threshold uncertainty must be escalated rather than offset through collateral or favourable exposure assumptions.

Why this seat is open

The review exposed that accurate facility records did not produce a complete view of economically connected groups, and the accountable leader departed during remediation. Temporary authority must join legal, behavioural and exposure evidence across four live quarters and leave a successor capable of challenging relationship-manager and system assertions.

What you will own

• Reconcile legal entities, beneficial owners, guarantors, controllers and connected-client groups across source systems.
• Test control and economic-dependency indicators including common funding, revenue reliance, guarantees and distress transmission.
• Aggregate loans, commitments, securities, derivatives, settlement exposures and off-balance-sheet items by governed measure.
• Validate eligible collateral, guarantees, exemptions, maturity treatment, currency, netting and exposure-value adjustments.
• Govern group creation, override, review, expiry, split, merge, ownership change and supervisory threshold escalation.
• Exercise a hidden guarantor, common-funder failure, ownership transfer, collateral expiry and same-day facility increase.
• Transfer authority after four quarters and successor defence of an unfamiliar connected-group case before internal challenge.

Candidate qualifications

• Held accountable large-exposure or connected-counterparty reporting leadership in a major corporate or universal bank.
• Built connected-client populations using legal control, beneficial ownership, guarantees and economic-dependency evidence.
• Aggregated on- and off-balance-sheet exposures with collateral, exemptions, netting and conversion factors under supervision.
• Reconciled client onboarding, credit, risk and Finance identifiers into granular regulatory-return lineage.
• Challenged business assertions while preserving credit decision, risk methodology and regulatory interpretation boundaries.
• Handed recovered exposure reporting to permanent leadership through quarterly submissions and complex network scenarios.

Non-negotiables

• Available within two weeks for exclusive Mumbai service across four quarterly large-exposure reporting cycles.
• Direct bank connected-client and large-exposure reporting experience is required; credit underwriting alone is insufficient.
• No undisclosed relationship may involve material borrowers, collateral valuers, reporting vendors or assurance providers.
• Will escalate uncertain grouping and threshold breaches despite potential constraint on commercially important clients.

1. 49 words maximum. Describe an economic dependency that legal ownership records failed to identify.
2. 49 words maximum. How did you aggregate commitments and derivatives without double counting mitigation?
3. 49 words maximum. Which hidden-guarantor scenario would you use to qualify the permanent reporting head?