Background to Contingent Liabilities Central Capability (CLCC)

As set out in the “Government as Insurer of Last Resort” report published by HMT at the March 2020 Budget, a key opportunity identified by HMT’s Balance Sheet Review launched in 2017 was to establish a central capability to advise on the management of contingent liabilities across government.
The government takes on risk that the private sector cannot to protect the population and provide stability when unforeseen events occur. This can create potential liabilities that are uncertain but might lead to future expenditure if specific conditions are met or specific events happen. These liabilities are known as contingent liabilities.

The Contingent Liability Central Capability (CLCC) has been established as an analytical and advisory unit to build on the existing approval framework and further strengthen contingent liability expertise and risk management across government. It began providing support to government in April 2021. The team comprises actuaries seconded from the Government Actuary’s Department (GAD), corporate finance and credit risk experts (both from the private and public sectors), policy professionals and analysts.

CLCC currently has three branches: Credit Risk, Insurance and Portfolio Analysis & Engagement.

The role

UKGI is looking to hire an analyst for the Credit Risk branch of the CLCC, which is focused on credit risks typically structured as financial guarantees provided by the government to the private sector both domestically (such as housing and business support related guarantee programmes) and internationally (such as developmental guarantees supporting the UK’s role as a founding member of the World Bank). The role will, from time to time, include work outside of contingent liabilities and across the three CLCC branches, albeit still focused on analysis (e.g., assessing single name counterparty risk), and potentially across multiple sectors (e.g., sovereigns, corporates, and financial institutions). The role will involve working closely with the head of the Credit Risk branch and other team members across several work streams:

• Provide expert, authoritative, and timely analysis of proposed contingent liabilities to support better contingent liability structuring, decision making and reporting across government.
• Using internal and external credit risk data sources, and database querying skills for extraction and manipulation of data to support all CLCC objectives, notably its efforts to estimate expected losses for new and existing contingent liabilities and in the structuring of fee-charging regimes.
• Analyse the financial risks associated with contingent liabilities across government to support better decision making by HMT, Arm’s Length Bodies (ALBs) and departments, to improve the understanding of contingent liability risk exposures across government, and to feed into holistic central fiscal risk projections.
• Build and maintain a network of contacts across government to support contingent liability management.
• Support best practice methods across government to assess the financial impact of contingent liabilities, consistently and accurately, including analysing the level of premiums that could be charged.
• Assisting in developing and executing a robust governance framework for contingent liabilities.
• Assisting in the development of the CLCC’s processes and analytical systems.

Required skills and experience:

• Performing credit risk and financial analysis across a range of sectors, demonstrating strong credit and financial analysis skills.
• Preferably two (2) to three (3) years’ work experience in a financial institution, rating agency, academia, consulting / advisory firm, or the public sector; or graduates who hold a relevant degree.
• Sound analytical and database querying capabilities showing experience of problem solving and creative thinking.
• Good understanding of developing and implementing of data dashboards. Data visualisation or programming skills are desirable (PowerBI, VBA, R etc.,) alongside advanced Excel skills.
• Ability to work in the context of uncertainties and lack of data, and to apply expert judgement, drawing from a range of data sources and subject matter expertise with the support of your team.
• Performing research using available credit risk and financial data sources.
• Good understanding of financial and/or risk modelling is desirable.
• Basic knowledge of assessing expected loss (PD/LGD/EAD analysis), or pricing of financial instruments is desirable.
• Excellent communication with the ability to write clearly and insightfully.
• A proactive team player with a demonstrable inclusive, collegial, and commercial approach.
• Excellent attention to detail and accuracy.

About UKGI

At UK Government Investments (UKGI), we provide the government with expertise in corporate finance and governance. What we do is unique. We are responsible for ensuring the effective governance of government owned companies (such as the British Business Bank), advising the government on corporate finance issues (including interventions into distressed corporate structures, such as Thomas Cook and British Steel) and all significant UK government asset sales (for example, the sale of the Green Investment Bank, the securitisation of the Student Loan book and the IPO of the Royal Mail). The work we do is significant in terms of social, economic and political impact.

Wholly owned by HM Treasury (HMT), UKGI has a team comprised of over 150 experts which is quickly growing, drawn from the private sector (from banks, accountancy, and legal firms) and from the Civil Service to ensure we provide government departments with high quality advice that is delivered and acted upon in the best way possible.

Working for UKGI provides a unique opportunity for talented individuals from both the public and private sector to contribute to work of national importance.


Next steps

If you would like to be challenged by genuinely fascinating work and work in an environment where working in line with UKGI’s values is taken seriously, please apply to this advertisement with your CV and a short covering note outlining your credentials for the role.

Diversity statement

UKGI has a strong commitment to equality and diversity. Our aim is to be an open and inclusive organisation, recruiting and retaining diverse, talented and high-performing people who support and develop one another.
UKGI is a Disability Confident Employer. This means we’ve been recognised as an employer which is confident and leading the way in recruiting and retaining staff with disabilities. We will offer an interview to any applicants with a disability who have indicated they wish to take part in the disability confident scheme, provided they meet the essential criteria for the post set out in the person specification.

If you need any reasonable adjustments to take part in the selection process, please tell us about this in your online application form.