Credit Risk Modeller Ying: the added value of risk modelling in the renewable energy industry

Creativity in Risk Modelling

Ying started her career at Rabobank in 2017 as an intern, and her skills in quantitative finance helped her to become a Quantitative Risk Analyst focusing on pricing methodologies. Eventually, the position of Senior Credit Risk Modeller caught her attention due to its combination of problem-solving and creativity in a simulation-based model development.

Future-oriented

Ying and her team develop risk models tailored to Rabobank’s project finance portfolio, focussing on the renewable energy market. Ying: “The bank sees great strategic importance in the energy transition, which makes my contributions even more valuable. Our financial models play an important role in offering clients better pricing options and to help in risk differentiation. While risk and finance may seem traditional, the modellers who work in renewable energy require a creative skill set.”

Ying explains why: “Traditionally, risk models rely on historical data, analyzing factors like balance sheets, assets, collaterals, and portfolios. However, in the field of renewable energy, we apply a more forward-looking approach.” Ying explains the shift: “Instead of focusing on past performance, we predict future cash flows and assess the costs and benefits of a project.”

This forward-looking perspective introduces new uncertainties and unknowns. “Creating models based on thousands of possible scenarios demands a fresh outlook and the ability to think creatively. “Next to these new ways of thinking, it is also our responsibility to incorporate functional business requirements into these models, and meanwhile not overcomplicating the model too much and meeting external deadline. It is a challenge to make it all happen!”

Valuable Insights

Within the field of risk modelling, collaboration is inevitable. Ying explains how the team dynamic works. “The consultants in our team contribute valuable business insights to the team, translate requirements from business stakeholders and help evaluate modelling results and process with regulatory requirements. Our junior modellers focus more on analyses, coding and methodology. They make sure all models and features are efficiently and accurately implemented. As a medior and senior modeller, you play a more significant role in communicating with our stakeholders. You are responsible for the outcome of the model, and you really need to convey clearly all the objectives, expectations, and deliverables to different stakeholders.”

Developing Professional Skills

Ying recently completed an agile training course. “With the adoption of Simplify@Scale, we’ve seen significant organizational changes. Embracing agility has become imperative. At Rabobank, you get a personal development budget, with which you can shape your own development for example by choice a training or course of your liking. I can enrol in courses and seamlessly integrate them into my work schedule. Additionally, we receive annual study hours dedicated to self-improvement, which you can use during working hours.” Can you also improve your technical skills? “Absolutely! You can enhance your Python skills, master PowerBI, delve into dashboarding, and even follow customized courses on data analytics. There’s an extensive selection of courses available, whether you’re a beginner or already on an intermediate level. The learning possibilities are endless!”

“At Rabobank, we foster a culture of exploration and knowledge-sharing. We constantly seek to stay ahead with the latest advancements in machine learning and AI. How can we embrace these cutting-edge technologies while adhering to our regulatory obligations? These are very fascinating and exciting topics to me. There is so much happening in our area of expertise. Even though we can build larger models with AI and enhanced computing power, it remains crucial to be able to articulate the outcomes of these models to our clients and stakeholders. It’s a responsibility I deeply understand and value.”