Nigar Karimova: A trailblazer in enterprise risk management

Nigar Karimova stands out as a distinguished figure in the field of Enterprise Risk Management (ERM), crafting a distinguished career of expertise, innovation, and leadership. Her journey from Azerbaijan to the pinnacle of global financial institutions exemplifies her steadfast dedication and significant impact on the risk management field.

Nigar's exceptional academic foundation was established with a Bachelor of Science in Business Administration from Northeastern University, and further solidified through a Master of Science in Enterprise Risk Management from the prestigious Columbia University. This robust educational background has been instrumental in her career, enabling her to excel in high-impact roles within esteemed organizations.

Her career path is marked by pivotal positions at Wellington Management Company, Marsh & McLennan, and Citibank. As a significant milestone in her career, Nigar currently integrates her extensive risk management expertise with strategic leadership as a Quantitative Risk Analyst at Citibank and as a Seed Director at NucsAI. Her contributions are not merely notable but transformative, significantly influencing how organizations approach and manage risk.

- Nigar, it is an honor to have you with us today. Could you delineate the key stages of your career progression and highlight the most impactful roles you have held?

- Thank you for having me. My career has indeed been a compelling journey. I began my professional path as a Revenue Accountant at Wellington Management Company, where my focus was on cash reconciliation and hedge fund reporting. This role was pivotal in providing me with a comprehensive understanding of financial processes and controls. Subsequently, I transitioned to Marsh & McLennan, engaging in CRM migration and quantitative investment analysis. My tenure at Citibank began with a role as a Technology and Cyber Risk Summer Analyst, followed by my current position as a Quantitative Risk Analyst. This progression has deepened my expertise in risk assessment and macroeconomic analysis. In my current roles, I combine my risk management knowledge with strategic oversight.

- Your career reflects a pronounced interest in risk management. What factors have fueled this increased interest? Were there any specific pivotal periods that influenced your focus?

- My heightened interest in risk management was significantly catalyzed by the COVID-19 pandemic that unfolded globally in 2020. During this crisis, the importance of risk management in finance became increasingly apparent. Companies grappled with strategies to mitigate the risks exacerbated by the pandemic. The adage "risks create opportunities" proved to be accurate not only for entrepreneurs and business leaders but for everyone. I seized this opportunity to advance my expertise, investigating opportunities for pursuing a master’s degree in risk management and exploring avenues for further development in the field. New challenges necessitate innovative solutions, and my master’s education significantly advanced my knowledge, particularly in credit risk management. Topics such as stress testing, the Black-Scholes model, and Value-at-Risk captivated my interest, leading me to focus on credit risks within banking institutions. My goal was to specialize in credit risk management at a major financial firm.

- Your career encompasses several notable achievements. Could you elaborate on some of the major milestones and their impact?

- Certainly. A major milestone in my career was leading the development of the Risk Rating Transition Matrix Dashboard at Citibank. This initiative was launched to address the need for a comprehensive tool to monitor and visualize the movement of risk ratings assigned to our obligors. By creating a dashboard with calculated fields to categorize rating changes and implementing a "Measure Selector" parameter, I significantly enhanced our risk management capabilities. This tool provides a clearer and more comprehensive view of rating transitions, facilitating more informed decision-making.

Another significant achievement was my work at Marsh & McLennan, where I developed client-facing performance reports for stable value funds. These reports, designed to aid in capital preservation within retirement plans, streamlined our reporting process and provided clients with detailed, understandable performance data, thereby greatly improving our service delivery.

Additionally, at ARPA, I led a project focused on managing commercial risks for SMEs in Azerbaijan. This initiative involved organizing training sessions and delivering customized consultations, which markedly improved the risk management practices of participating SMEs and enhanced their operational efficiency.

- Could you explain the specific contributions and impacts of your work, and explain their significance?

- Absolutely. The Risk Rating Transition Matrix Dashboard at Citibank has been instrumental in enhancing our capacity to monitor and analyze obligor risk ratings. It provides a detailed view of rating transitions, allowing lead reviewers to identify significant changes and focus their analysis. This tool enhances industry-specific analysis by offering valuable insights into sector-specific risk profiles.

The stable value fund reports I developed at Marsh & McLennan demonstrated an innovative application of existing tools to manage complex data sets. My approach facilitated more informed decision-making by tracking quarterly changes in portfolio data and improving our client reporting structure.

The ARPA project, which involved training SMEs in Azerbaijan, underscored the importance of targeted risk management training. The enhanced capabilities of the participants led to improved risk mitigation strategies and operational efficiency, highlighting the critical role of systematic risk management practices.

- Could you provide specific data that illustrates the impact and outcomes of your work?

- Certainly. The ARPA project significantly improved SMEs' risk management procedures, lowering their exposure to risk and increasing operational effectiveness. The Risk Rating Transition Matrix Dashboard at Citibank has improved our capacity to monitor and visualize changes in risk ratings, resulting in more efficient risk assessment and decision-making. Our service delivery has been greatly improved by the Marsh & McLennan stable value fund reporting project, which has streamlined procedures and given clients detailed performance data.

We are now able to monitor and manage risk much better thanks to the Risk Rating Transition Matrix Dashboard. It offers a thorough, lucid perspective of rating transitions, promoting improved risk assessment and decision-making. By highlighting obligors who had notable shifts, lead reviewers can improve the effectiveness and targeting of the review process. Furthermore, industry-specific studies are supported by the dashboard, offering more in-depth understanding of risk profiles in various industries. Offering insights into obligor rating transitions, the Risk Rating Transition Matrix Dashboard is the first of its type in our department. It has raised the bar for risk assessment instruments at Citi and shown the real-world effects of cutting-edge data visualization and analytic methods.

- What future projects or contributions are you anticipating, particularly in the U.S.?

- As I look to the future, I am enthusiastic about furthering my career in risk management and financial analysis. My objective is to develop "The Risk Rating Transition Matrix Dashboard" system tailored specifically to the U.S. risk management framework. This innovative dashboard will serve as a critical tool for organizations to assess and visualize risk rating transitions effectively. The primary goal of this system is to provide users with a comprehensive overview of risk ratings and their fluctuations over time. By integrating analytics and visualization tools, the dashboard will allow users to identify trends and patterns in risk ratings, ultimately enhancing their decision-making processes.

- What emerging trends in risk management should professionals be aware of?

- Overall, the integration of AI into risk management can lead to more proactive, efficient, and effective risk mitigation strategies. Furthermore, involving AI in Risk Management can process and analyze large volumes of data much faster than humans, identifying patterns and trends that might not be apparent otherwise. This can lead to more accurate risk assessments. Another very important topic is Cost efficiency that professionals are required to consider. In this regard, AI can help organizations save on potential losses and associated costs, leading to greater overall efficiency in risk management efforts.

- How do you maintain a work-life balance while managing such high-impact roles?

- I believe maintaining a work-life balance is essential for long-term success and well-being. I prioritize effective time management and ensure that I allocate time for personal activities and relaxation. It is vital to strike a balance that allows for both professional achievements and personal fulfillment. I make it a priority to stay organized and focused on my goals.

- Thank you, Nigar, for sharing your journey and insights. Your contributions to the field of risk management are truly inspiring.

- Thank you for the opportunity to discuss my experiences. I look forward to continuing to make meaningful contributions to the field and supporting the next generation of risk management professionals.