Risk Management Group

Activities: The principal responsibility of RMG is to take an independent view on all the material risk acceptance decisions Macquarie Group makes. The Risk Management Group supports the growth of all Macquarie’s business, reviewing and approving Macquarie’s principal transactions, new businesses and new products.

Locations: Auckland, Bangkok, Cape Town, Chicago, Frankfurt, Georgia, Hong Kong, Houston, Jakarta, Johannesburg, Kuala Lumpur, London, Los Angeles, Mumbai, New York, Perth, Seoul, Singapore, Sydney, Taipei, Tokyo, Toronto

The Risk Management Group (RMG) is an independent, centralised unit responsible for assessing and monitoring risks across Macquarie. Its functions are Credit, Prudential Capital & Markets, Market Risk, Operational Risk, Internal Audit, Macquarie Compliance, Data Policy and the Quantitative Applications Division (QAD).

This exposure to the varied operations of the businesses provides a unique opportunity to learn about each of the groups within Macquarie.

Credit assesses the credit risk on lending and trading transactions. It allocates credit limits for counterparties and countries, develops procedures for measuring credit exposures and reviews the adequacy of legal documentation.

Data Policy ensures that uniform data standards are adopted by divisions so that accurate and reliable information is provided to the Group for credit monitoring and for regulatory and statistical reporting processes.

Internal Audit (IAD) provides independent assurance to senior management and the Board Audit Committee on the adequacy and effectiveness of Macquarie's financial and risk management framework.

Macquarie Compliance oversees measures to ensure compliance with applicable regulations and laws in Australia and internationally as well as with obligations of fidelity and confidence to clients and counterparties.

Market Risk reviews market risk taken in the trading and banking books across the Group. It sets trading limits and monitors exposures against those limits daily.

Operational Risk ensures that operational risk throughout Macquarie is identified, that appropriate resources are available to control it and that any area where the means available to manage operational risk to an appropriate standard are inadequate is recognised and escalated. RMG Operational Risk is also responsible for Macquarie’s operational risk capital measurement methodology.

Prudential, Capital and Markets (PCM) is responsible for liaison with APRA and for ensuring compliance with its prudential standards. PCM is also responsible for the Economic Capital Model and the Equity Risk Limit. In addition, PCM has oversight of the Group’s funding and liquidity policies and monitoring compliance with them.

Quantitative Applications Division (QAD) is responsible for reviewing and approving all derivatives pricing models used within Macquarie’s trading systems. In addition, QAD works in partnership with individual business units to provide creative solutions to complex financial problems, and is consulted on a wide range of quantitative issues.

RMG Information Technology Group (ITG) provides RMG with a dedicated team that works closely with RMG to understand its particular technology needs.