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Director, Residual Value Risk
Volkswagen Group of America
Herndon, VA, United States
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Role Summary:
The Director, Residual Value Risk is responsible for leading the development, back testing and management of VCI’s residual value exposure over multiple Volkswagen Group Brands. This position is responsible for overseeing residual value risk mitigation strategies to identify and communicate residual value risk within the current lease portfolio to ensure the highest level of retention value for maturing leases. This director level position requires a thorough understanding of the used car market and the ability to model used vehicle retention scenarios while concurrently considering future performance expectations to accurately develop residual values. This role is responsible for the development of critical, cross functional, highly sophisticated business intelligence specific to used vehicles and residual values for the entire organization. This position is required to collaborate with leaders of Brand Product Planning, Brand Sales Incentive Planning, Brand Sales Planning, Brand Finance, VCI Sales Operations, VCI Consumer Risk and external auditors in the establishment and management of the $12B residual value component of VCI’s $17B lease portfolio. This position develops and communicates to VCI and Brand Executive Management all residual value development and risk mitigation strategies, the decisions of which have significant direct influence on sales, penetration rates and portfolio profitability.
Role Responsibilities:
Residual Value Setting –
• Lead the Herndon, VA-based residual value team responsible for establishing and back testing residual values for Volkswagen Group Brands the U.S. market; which has direct influence on sales volumes, penetration rates, and company profits.
• Direct Brand product colleagues’ vehicle planning activities, in a consultative capacity, to ensure new vehicles are designed to maximize residual values.
• Collaborate with VCI and Brand senior management to launch appropriate residual values that maximize sales and profit objectives while minimizing residual value risk. This process is highly dependent on modeling historical performance along with new product expectations.
• Manage the development of risk appropriate residual values for each model and new model year in addition to managing model lifecycle adjustments.
• Direct the Risk Management Statistical Modeling Team (RV) to guide the development and validation of predictive models forecasting lifecycle management, incentive mix impact, volume impact and other key market dynamics affecting the residual value portion of the VCI/AFS lease portfolio.
• Represent VCI’s Risk Management activity in lease portfolio securitization offerings to the capital markets (RV specific). This includes preparation for investor road show presentations and extensive residual performance analysis and internal data support required for each new securitization offering.
• Voting member of the Remarketing Committee. Work with Remarketing, Pricing, and Brand CPO stakeholders to identify and execute risk mitigation tactics and strategies that will maximize disposal proceeds and brand value.
• Continue advancement of residual value setting and forecasting techniques through statistical application and understanding of key macro-economic variables such as seasonality, depreciation, volume, incentive levels, fuel prices etc.
• Utilize advanced modeling and statistical analysis techniques to answer a large variety of ad-hoc portfolio performance and trend related questions.
Planning and Reporting –
• Lead the Herndon, VA based planning and reporting team with responsibility to manage the continued development, analysis and reporting of the VCI consumer and commercial portfolios performance.
• Provide consistent and accurate risk management residual value risk forecasts and comprehensive analysis of actual performance results to senior management and FSAG risk management & methods.
• Act as the primary liaison to FSAG Risk Management for all risk reporting issues.
• Identify areas of concern related to loss and reserve adequacy forecasts and report findings to senior management.
• Direct the reconciliation of loss and reserve adequacy source data with Accounting & Controlling to ensure accuracy.
• Lead the design and updating of the reserve adequacy forecasting model.
• Prepare risk management section of the Business Financial Reviews.
• Prepare risk management section of the annual Planning Round process.
• Prepare and communicate monthly RV Reserve Adequacy reporting (risk sharing) to Brand executive leadership.
• Lead the reserve management discussion with PwC within the scope of the quarterly reviews of the $1B residual value provisions.
Other Responsibilities –
• Co-lead (with Director, Consumer Credit Risk) risk management’s involvement and support of financial engineering activities in funding the loan and lease portfolios through Asset Backed Securitization. Participate in rating agency and investor presentations and the requisite portfolio analytics required to provide a portfolio rating.
Qualifications
Experience:
• 10-12 years residual value-oriented risk management or residual value-oriented statistical modeling related experience
• 15+ years of automotive and/or automotive financial services experience
• 5 years automotive retail or wholesale and/or 5 years automotive retail/lease financing with involvement in financial engineering techniques
• Extensive prior leadership experience managing teams and/or departments
Education:
• Required - Bachelor's degree in Business, Statistics, Economics, Mathematics or equivalent related work experience is preferred.
• Desired - Masters Degree in Business or related field
General Skills:
• Highly competent interpersonal and communication ability
• Analytical and conceptual thinking – using logic and reason, creative and strategic
• Computer savvy – skilled in the use of software
• Integration – joining people, processes or systems
• Influencing and negotiation skills
• Problem solving
• Resource management
Required Specialized Skills:
• Extensive experience in strategic leadership
• Thorough working knowledge of advanced statistical analysis techniques
• Ability to “think outside the box” and use unconventional methods where necessary
• Ability to sell ideas and conclusions in a clear, concise manner
• A specialized ability to communicate highly technical subjects to senior executives and others who have a limited background in mathematics or statistics
Work Flexibility:
• This role requires the ability to travel 25% of the time
We are proud to be an EEO employer M/F/D/V. We maintain a drug-free workplace and perform pre-employment substance abuse testing.