The Stress Testing Group, a part of the Portfolio Risk group, defines stress testing policy and

methodologies, develops and implements stress tests at all levels of the Group, and ensures that stress

testing results are communicated to relevant audience and actioned as necessary.

The Stress Testing Group is responsible for:

Developing and implementing the Global Stress Testing Policy

Developing, validating, and implementing Group-wide, legal entity and business unit stress

esting scenarios

Coordinating and aligning global and regional stress testing scenarios

Developing stress testing methodologies across market risk, credit risk, operational risk,

liquidity/funding risk and business risk

Analysing and reporting cross-asset stress testing results

Role & Responsibilities:

Stress testing primary purpose is to ensure that all material risk concentrations are understood and

consistent with the Firms risk appetite and business strategy. Stress testing is carried out on a regular basis

to ensure that the Firm has sufficient resources to continue to do business in the event of a severe downturn

scenario beyond the reach of VaR/Economic Capital. The role involves:

Analysis and review of scenario results, focusing on understanding behaviour of derivative products

under scenario conditions

Implementing improvements to stress testing reporting information and developing new stress tests in

order to provide effective key risk management information to senior management

Working with front office and other risk managers to review current portfolio risks and trading strategies

in order to develop new scenarios / improve current scenarios to fully address market risks

Overall consolidation Reporting: monthly / quarterly to senior management and regulators

Satisfy the regulators scenario requests and other infrastructure and control requirements

Implementing Shocks of various scenarios in Front Office/Risk Systems and validating them

Key Skills:

Nomura Core Competencies:

Competencies Behavioral Indicators

Culture & Conduct

Building Nomura’s Culture

Diversity & Inclusion Professional

Integrity Self-Awareness

Contributes to desired culture

Sets positive example

Aware of different values/styles

Holds high standards of behavior

Aware of own strengths/weaknesses

Client-Centricity & Business Acumen

Commerciality Client-Centricity

Analytical Thinking & Problem Solving

Understands current market

Anticipates client needs

Pays attention to detail

Sees problems, recommends solutions

Strategy & Innovation

Strategic Thinking & Change

Decision Making & Judgment

Agility

Balances alternative views

Knows when to decide/when to escalate

Champions new ideas

Is both disciplined and entrepreneurial

Sees when to escalate

Leadership & Collaboration

Managing Talent

Recognizing and Motivating Supporting,

Developing

& Collaborating with others

Managing Conflict

Thinks differently

Balances alternative views

Knows when/how to compromise

Learns from experience

Seeks to develop

Communication & Connectivity

Articulation & Receptiveness

Impact Connectivity

Assists in recruiting

Gives credit

Builds productive working relationships

Provides constructive, timely and specific

feedback

Communication & Influence

Articulation and Receptiveness

Impact Connectivity

Adjusts style to suit topic

Balances listening/talking

Communicates with clarity and consideration

Is a proven and credible resource

Questions to understand others’ views

Builds internal contact network

Willingly effectively works across teams

Execution & Delivery

Driving Performance

Execution-Focus

Planning & Organizing Adaptability

Demonstrates accountability/commitment

Takes on challenging assignments

Executes priority actions on-time

Keeps stakeholders updated

Manages expectations

Persists when confronted with resistance

Mandatory

Knowledge of financial products and their risk sensitivities

Knowledge of derivatives (including exotics), Markets, Economics

Excellent oral and written communication skills

Desired

Python for Finance

CFA / FRM certification

NOMURA RISK MANAGEMENT - STRESS TESTING

Station Overview

Project 1

Risk Management - Stress testing