Job Description

Job Summary As part of the 2nd Line of Defense (2nd LOD), the position of Financial Risk Officer plays a key role in identifying, measuring, monitoring, and controlling risks across the Bank with an emphasis on the liquidity risk, market risk, interest rate risk, and capital risk. The role also supports the Bank's broader enterprise risk management efforts including risk appetite setting, breach management, and issues management. Other responsibilities of this role encompass drafting risk policies, monitoring and reporting on exposures against those polices, updating policies in an orderly fashion, and continuous engagement with the relevant lines of business. The Financial Risk Officer works with the Manager of RGSO to build a culture of risk management in the organization, to develop risk mitigation strategies by entity, process and/or project and to accumulate, synthesize and report on risks to executive management and the Board of Directors. Essential Duties Oversee the core financial risk categories with the overarching objective of helping the Bank optimize risk-adjusted return in a prudent manner. Market Risk, Interest Rate Risk, and Liquidity Risk: Provide dedicated independent risk oversight for identification, measurement, monitoring, and management of these risks. This role ensures that established policies and procedures are adhered to, positions are properly calculated and reported, and risk limits are adhered to by risk-taking units. Capital Risk: Provide dedicated independent risk oversight for identification, measurement, monitoring, and management of Capital Risk. This role also conducts the quarterly Capital Stress Testing including managing the model, preparing financial forecasts for quarterly runs, analyzing results, preparing documentation, and reporting. Comply with the Bank's Model Risk Management program requirements. Partner with business units on the selection of appropriate risk metrics and setting risk limits that channel risk taking in accordance with the Bank's risk appetite. Perform extensive internal and external benchmarking and related analysis as part of the evidence-based dialogue process to inform the metric and limit setting process with business units. Perform effective challenge reviews of the financial risk categories including engagement with business units on timely resolution of items identified by Risk Management and validating resolution of findings by other key stakeholders. Partner with business units in the creation and implementation of risk-adjusted return tools. Support the Manager of RGSO in the continual evolution of, implementation, and management of the Bank's Enterprise Risk Management Program. Participate in the ERM Governance function including the updating and implementation of the Risk Management Framework, Risk Appetite, risk aggregation and reporting including inherent and residual risks. Play a key role in the enterprise risk assessment process including refinement of the methodology. Proactively review the Bank's exposure profile for potential breaches and prevent or otherwise resolve breaches in a timely manner. Partner with business units on the creation of corrective action plans for breaches and issues in the relevant risk categories and continue engagement with business units until all matters are resolved. Assist with proactively managing and advising the Bank on potential/emerging risks to assure objectives are achieved and disciplines are implemented to drive continuous improvement. Collaborate in developing and managing the breach management process, in conjunction with risk appetite statements, and regular reporting. Collaborate in defining both a change management and issues management process for the Bank with 1st Line of Defense personnel, who will ultimately own the process. Collaborate in developing and implementing changes as needed to minimize risks as well as improve internal and external risk characteristics across all business lines. Assist with defining and providing support and training to build risk management awareness within the Bank. Actively participates in Bank initiatives and projects, as needed, providing risk management, data analysis and bank processing knowledge and skills. Complies with all State and Federal Banking regulatory requirements, including but not limited to: BSA, Anti-Money Laundering OFAC, CIP, Financial Elder Abuse Reporting, Sexual Harassment, Information Security and privacy requirements. This position will elevate suspicious activity to supervisory staff and/or BSA department. Completes compliance and other technical training workshops as assigned. Non-Essential Duties Inductive Reasoning - Ability to combine pieces of information to form general rules or conclusions (includes finding a relationship among seemingly unrelated events). Deductive Reasoning - Ability to apply general rules to specific problems to produce reasonable answers. Knowledge of business and management principles involved in strategic planning, resource allocation, human resources modeling, leadership technique, production methods, and coordination of people and resources. Required Knowledge Banking knowledge - Finance and Accounting, loans and credit management, back-office operations Working knowledge of IT processes and principles preferred Knowledge of risk management principles and practices in banks. Basic Knowledge, Skills and Abilities Strong analytic, logical reasoning and problem-solving skills Must have a strong understanding of quantitative analyses Process improvement and technology skills, a plus Ability to create reporting, e.g., Cognos or similar Excellent interpersonal skills Strong verbal/written communication and presentation skills Must be able to work independently and set goals/prioritize, focus, and have time management skills Strong knowledge of Excel (intermediate to advanced), Word, Visio, PowerPoint Familiarity with statistical software (e.g., R, SAS) Experience with financial data platforms such as Bloomberg and S&P Capital IQ is required Strong understanding of capital markets, particularly fixed income portfolios Expertise the measurement and management of liquidity risk and market risk Officer Title Eligibility For qualified positions, the Bank may designate an Officer Title to an employee who seeks and/or meets defined competencies for an eligible position. This position qualifies for the officer title(s) Vice President. Equipment Operated Telephone Laptop Top Computers Standard Office Equipment (copiers, fax machines) Physical Requirements & Work Environment Requires repetitive movement Requires standing and/or sitting for prolong periods of time Requires lifting up 25lb. Requires using hands to handle, control or feel objects Office setting w/controlled temperature Education and Experience B.S. Accounting, or Finance with experience in the Accounting / Finance or Financial Risk department of a bank Advanced degree (such as an MBA) or professional certification (such as a CFA Charter) strongly preferred 10+ years of prior banking experience with a focus in risk management, preferably including financial risk 5+ years working at a regional banking organization Extensive experience with financial modeling and analysis including a deep understanding of the balance sheet, income statement, and bank capital calculations Capital stress testing - running, documenting and maintaining Experience acting as the risk liaison with risk taking units is required including reporting as well as communicating risk policies and limits with risk taking units Prior experience writing risk policies is strongly preferred Experience applying regulatory guidance pertaining to the financial risk domains including market risk/interest rate risk, liquidity risk, capital risk, and credit risk Deep knowledge of the effective challenge process, particularly the ability to champion constructive improvements in business practices Experience with Governance, Risk, and Compliance (GRC) systems, particularly for breach and issue management Direct knowledge of risk-adjusted return tools and engaging with business units on their use Strong knowledge of the limit setting process including internal and external benchmarking This job description is not intended to be all-inclusive, and employees will be required to perform additional related work duties as assigned by their immediate supervisor and/or management. Farmers and Merchants Bank of Long Beach reserves the right to revise or change job duties and responsibilities as the need arises. This job description does not constitute a written or implied contract of employment. January 28, 2025 Farmers and Merchants Bank of Long Beach

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