Chief Risk Officer

About Locus

Locus (formerly VCC Social Enterprises) partners with communities where the capital system is not working to ensure that everyone, no matter their background, location, or economic status, can live in healthy, thriving communities. A capital system that centers community input and impact is essential to making this a reality.

Locus is a nonprofit holding company regulated by the Federal Reserve. Locus is the parent organization for a family of social enterprises, which includes Locus Bank, Locus Impact Fund, Locus Capital, and the Community Investment Guarantee Pool, or CIGP. Locus has generated over $2 billion dollars in total impact in local communities to create jobs, energize places, and promote an enhanced quality of life. With offices in Christiansburg and Richmond, Locus offers innovative and flexible financing tools and professional advisory services to individuals and organizations in low-to-moderate income and underserved communities. Locus Bank is an FDIC-insured, certified bank and B Corp offering products tailored to socially conscious investors, along with personal and business checking, savings, and certificate of deposit accounts. Locus Bank is a majority-owned subsidiary of Locus. Member FDIC. Equal Housing Lender.

Learn more about Locus at www.locusimpact.org.

The Opportunity

The Chief Risk Officer (CRO) will provide the leadership and vision to develop and execute risk strategies in support of Locus’s credit culture and overall business objectives. The CRO is responsible for leading three major areas of the organization: 1) Credit culture and decisions for the Bank, loan fund, and guarantee pool, 2) Design and review of the New Markets Tax Credit (NMTC) allocation and investments, and 3) Enterprise Risk Management leading internal audit, Enterprise Risk board reporting, and compliance. The CRO position is also responsible for helping the company achieve its goal of becoming a true impact financial institution.  The leader in this position will lead and serve on several committees and help connect appropriate risk management to the overall mission of the organization. The CRO will be responsible for managing a credit team of portfolio analysts, Special Assets, a Credit Review team, and a team for internal audit and compliance. The CRO is responsible for establishing and leading a risk culture appropriate for a regulated community development organization, balancing an impact credit culture with prudent risk mitigants commensurate with the organization’s capital base and regulatory framework.

Essential Duties and Responsibilities:

Inclusive Credit/Guarantee/Investment Policy & Programs

• In collaboration with the Locus executive team and Executive Director of Impact Lending, ensure appropriate lending, guarantee, and tax credit investment policies are in place to effectively manage the organization’s risks in accordance with established risk appetite.   
• Pilot new underwriting practices and lending/guarantee programs to increase the community impact brought by Locus while maintaining acceptable levels of risk.
• Represent Locus on local, statewide, and national committees and working groups committed to Inclusive capital systems change. 
• Credit Approval and Guidance - Approve loan requests, in coordination with the underwriting, credit and risk management teams. CRO delegated authority is for loans up to and including $3.5 million.
• Develop asset quality review policies and procedures, including monitoring concentration risks in lending and guarantees, loan restructures and write-offs in coordination with relevant internal Locus staff. Work actively with Impact Lending team to address credit issues arising after Credit Committee approval of a loan proposal.

Credit Risk Management

• Oversee development, and evaluation of loan and credit policies, loan and guarantee products, underwriting, structuring, documentation to ensure compliance with relevant programmatic, financial, risk, and impact criteria.
• Engage and manage the external portfolio review annually, presenting results to the board and driving any changes/follow-up from the report.
• Manage the watched/criticized loan process. Manage any assets in OREO. Minimize charge-offs to risk parameters established for each program.
• Manage the loan audits by examiners. Stay in close communication with auditors with respect to strategy. Provide quarterly updates on the progress of new lending guidelines and credit strategies.
• Review existing risk rating systems to ensure credit risk is being measured accurately.

Tax Credit Risk Management

• Create a review and investment decision process for tax credit investments, specifically New Markets Tax Credits. Analyze and review opportunities, determine the appropriate assessment of risk for the tax credit investment, and establish a process to monitor compliance and risk of investment decisions.
• Determine how to incorporate tax credit investment risk into the Enterprise Risk Management system. Report risk as determined by this schedule.
• Analyze other tax credit investment opportunities appropriate for the organization and in alignment with Locus impact goals.

Enterprise Risk Management

• Lead the internal audit process, annual audit risk assessment, compliance and vendor management functions. Serve as staff liaison to the Board of Director Audit Committee. Ensure audit findings are corrected timely, and audit issues are reviewed and discussed by the Board Audit Committee.
• Ensure compliance risk is appropriately managed by the organization, including bank, contract, and HR compliance. Audit compliance risk as appropriate.
• Lead the Enterprise Risk Management (ERM) board reporting process, working with Locus executives across business lines to ensure reports are accurate, current, and articulate risks with each area of the organization. Present the ERM to the full board on the appropriate schedules.
• Lead the annual review and update of all Board policies. Ensure each business area (and the organization) has appropriate procedures to implement the policies. Ensure employees understand the consequences for not knowing and/or following policies and procedures.

Executive Leadership and Management Responsibilities

• Serve as a senior executive, managing work progress across business lines. Work collaboratively as part of a team with other executives. Promote Locus values across the entire organization and build team performance and morale within direct reporting groups.
• Recruits, interviews, hires, trains, and directs staff through a hybrid remote working environment. Builds and maintains a culture of execution excellence, inclusiveness, and personal accountability. Handles employee challenges within company policies and practices.
• Provides constructive and timely coaching, feedback, and performance evaluations. Expands employee knowledge through annual training opportunities, promoting personal growth and advancement. 

Candidate Profile

We are seeking candidates deeply committed to our mission, vision, and core values. Our ideal candidate will be passionate about creating inclusive access to capital by developing community partnerships and innovative financial products that tackle systemic capital access challenges and advance promising opportunities. The ideal candidate will have a strong credit, risk, and banking background with the ability to be creative and responsive to unmet community needs, while appropriately managing the board approved risk management appetite of the organization.

The ideal candidate should demonstrate a command of enterprise-wide risk in a regulated financial structure and be able to lead the organization in the appropriate balance of risk management and community responsiveness. Strong analytical and credit skills will be required and must be balanced with innovative risk mitigants and capital sources. Additionally, executive level leadership across business lines and with the board of directors will be necessary.

Requirements

• Minimum 10-15 years’ experience in the finance industry, preferably at a CDFI Bank or Loan Fund or in the Community Development department of a larger financial institution. Candidate must have a history of executive team leadership, creating new credit programs, and operating at an executive and board reporting level.
• Bachelor’s degree from an accredited college or university required. An MBA or other advanced degree in financial management is preferred.  
• Candidates should possess solid Credit, Enterprise Risk Management, compliance and social impact analysis skills. 
• Solid risk and credit skills, strong analytical skills, ability to analyze risk in data, financial statements and cash flow projections, project development budgets, construction budgets, and operating proformas are required and will be tested. Experience with non-traditional credit, such as guarantees, letters of credit and tax credit investments is preferred.
• A well-developed understanding of business legal, ownership, and tax structures.
• Demonstrated background and understanding the risk policies of a regulated financial institution and its responsibility to its regulators. Understanding of the various types of risk in the organization and appreciation for balancing risk and impact, while protecting the capital base of the organization.

Technology  

• Excellent Word, Excel, and Windows file management skills mandatory. Experience with Salesforce or other CRM tools. Locus is a Microsoft organization, utilizing Teams and other Microsoft Office.
• Demonstrated web research skills.
• Must be able to work independently in a stable remote environment. Must be present remotely during regular business hours for leadership, coaching and meetings.

Mission/ Vision/ Organizational Values

• Live and represent the values and mission of the organization.
• Strong analytical and people skills with a demonstrated ability to establish and maintain effective working relationships and successfully interact at all management and support levels, as well as with people of diverse socio-economic backgrounds.
• Ability to organize and prioritize work activities to meet deadlines and ensure high quality, timely work products. Ability to lead a team towards excellent execution and accountability.
• A high level of adaptability and flexibility are required in a dynamic, growth environment.
• Ability to travel as required. Expect about 20-30 percent travel time.
• Effective, respectful, and timely communications with internal and external stakeholders. Ability to verbally communicate clearly, concisely, and confidently. Ability to summarize data and create board level presentations. Ability to write accurate, clear, and organized communications, incorporating a range of information and analysis. Ability to document workflow and procedures.
• Analytic, thoughtful, and strategic thinking and thoroughly aware of organizational goals and strategic direction. Must have the ability to switch roles and procedures easily to facilitate change in line with organizational priorities.
• Access to high-speed internet bandwidth and reasonable proximity to Locus or a major metropolitan airport.

Locus prefers applicants from East Coast states where business relationships have already been established, they include Virginia, New York, Florida, New Jersey, West Virginia, Georgia, North Carolina, Massachusetts, and Pennsylvania. Considerations may be given to candidates from other Locus established states such as Nebraska, Kansas, Tennessee, and Missouri. 

Compensation and Benefits

Locus offers a competitive salary based on experience and skills, as well as an excellent benefits package including health, disability, life insurance, 401(k) savings plan with employer match, and paid time off. The annual salary range for the Chief Risk Officer is $230,000 - $250,000. The exact salary within this range will be dependent upon experience and location. Additionally, this position qualifies for the Executive Bonus plans when paid annually.

Contact 

DSG | Koya has been exclusively retained for this engagement, which is being led by Erin Reedy and Christy Farrell. Submit a compelling cover letter and resume by filling out our Talent Profile. All inquiries are strictly confidential.

Locus is an Equal Opportunity Employer. Locus does not discriminate in hiring or employment practices based on race, color, religion, gender, age, sexual orientation, marital or familial status, national origin, non-job-related disability, or status as a veteran