Brian Lichy

B.S. Actuarial Science and Mathematics 1995, M.S. Applied Statistics 1997

Risk Manager, Porsche Financial Services

Brian Lichy has been a Risk Manager for Porsche Financial Services, a subsidiary of Porsche AG, since 2004. "My job as Risk Manager puts me in a position to assess the financial risks we face as a company," Lichy explained, "with a primary focus of determining the residual (lease-end) value of vehicles for leases, as this is the largest risk that we face as a company. I also assess risk related to credit default to determine the appropriate pricing as it relates to the interest rate charged for financing."

Lichy’s company provides a majority of its retail loans to individuals, and the risk factors taken into account are primarily financial. He explained, "When assessing the potential risk of a customer, the information from the credit application along with the credit report is used to determine if a loan will be offered and the interest rate to be charged if offered."

Lichy did not plan on becoming a risk manager after graduating from Purdue. "I was originally interested in going into Quality Control type work based on classes and an internship at Ford," he said. While pursing his master’s degree, Lichy had a summer internship in the Ford Motor Company Automotive Components Division, where he designed and performed a statistical study of instrument panels to improve reliability, developed a benchmark for accelerated heat testing, and provided statistical analytic support for the engineers’ research.

"Upon graduation I started working at Ford Credit assessing portfolio risk as it related to loan repayment," Lichy recalled. "My experiences led me through residual, funding, and operational risk through rotations. With each new assignment, a new variable to the risks a company faces was presented, along with how they all interact together. The challenge of balancing the risk/reward payoffs was interesting to me, which has led me to further pursue this line of work." Lichy spent seven years at Ford Motor Credit Company and Ford Motor Company before moving to Porsche Financial Services.

Lichy has found that his education at Purdue prepared him well for his career. "The thought-process for problem solving has been very valuable," he said. "This was provided through the problems presented in class and working on the consulting team. The opportunity to teach gave practice in presenting and explaining concepts to people with different academic backgrounds."

To students interested in his field, Lichy advises, "Internships are a great way to get some experience and a feel for the field before starting your career. It is a great way for you to interview a company to see if they would be good to work for and if the field is really of interest to you. Getting involved in professional groups and attending conferences are also good opportunities for networking and learning what techniques are being used by others in the industry."

To learn more about the field of Risk Management, Lichy recommends:

Global Association of Risk Professionals (GARP): www.garp.com

Professional Risk Managers’ International Association (PRMIA): www.prmia.org

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