Model Risk Job Description
Model risk
provides input on the assessment of the effectiveness of risk management practices in the market, counterparty credit and liquidity risk areas including capital.
Model Risk Duties & Responsibilities
To write an effective model risk job description, begin by listing detailed duties, responsibilities and expectations. We have included model risk job description templates that you can modify and use.
Sample responsibilities for this position include:
Acquire and maintain a thorough understanding of the flow and context of model usage within their locality
Coordinate with Local Market Risk when appropriate to assist in the implementation of new product initiatives
Understanding the key current and emerging risks within the subject areas, including model risk across Capital International and local regulatory expectations in relation to the subject areas
Servicing as the resident subject matter expert on the subject areas for audit teams within Capital International – this role will include providing detailed guidance to local teams across Capital International undertaking audit work which is required to assess model risk, and the provision of training as required
Lead appropriate audit work within Capital International to support the comprehensive global audit testing plan that is developed by the Global Risk Audit Director and regulatory expectations
Develop, own and manage internal audit management reporting for the subject areas for external and internal stakeholders
Lead and development of a continuous risk monitoring process relative to the subject areas, inclusive of developing a close working relationship with the Capital International Model Risk team
Must be able to manage multiple projects with different timelines
Ability to see the big picture, and also pays close attention to the supporting details
Has in-depth knowledge of quantitative theories and how they relate to the business world
Model Risk Qualifications
Qualifications for a job description may include education, certification, and experience.
Licensing or Certifications for Model Risk
List any licenses or certifications required by the position: FRM, CFA, PRM, ARM, PMP, LEAN, SAS, ACAMS, OCC, QRM
Education for Model Risk
Typically a job would require a certain level of education.
Employers hiring for the model risk job most commonly would prefer for their future employee to have a relevant degree such as Master's and Bachelor's Degree in Finance, Engineering, Statistics, Mathematics, Physics, Economics, Management, Math, Graduate, Technical
Skills for Model Risk
Desired skills for model risk include:
R
SAS
C++
Programming languages
Word and PowerPoint
Python
Banking industry
Risk management in specific areas will be an asset
JAVA is desired
MATLAB
Desired experience for model risk includes:
The locality of a Local Model Risk Manager (LMRM) may be specified in terms of geographic location and/or product/business lines
Act as trusted advisor and effective challenger to model users on all matters pertaining to model risk
Where useful and appropriate, provide model validators with nuanced information as to a model’s business purpose and context so as to ensure that validation efforts are practical and business relevant
Facilitate the flow of information between model-use stakeholders and the EMRM process management team, ensuring stakeholders receive full and timely information as to the status of model risk work projects impacting their function
Good ability of conflict-solving
Advanced knowledge of quantitative data mining and statistical analysis techniques with minimum of three years of working experience
Model Risk Examples
1
Model Risk Job Description
Job Description Example
Our company is looking to fill the role of model risk. Thank you in advance for taking a look at the list of responsibilities and qualifications. We look forward to reviewing your resume.
Responsibilities for model risk
- Independently implementing pricing methodologies/payoffs in a managed C++ library (where appropriate)
- Communicating the results of the review to all key model stakeholders, including Market Risk Methodology, Market Risk Managers, Front Office quant developers
- Carrying out in depth discussions on identified issues and potential improvements
- Being actively engaged in the ongoing review of model performance and applicability the validation and review of model changes on an ongoing basis
- Conduct reviews of models used in connection with pricing, loss forecasting, and capital calculation for wholesale products
- Effectively discuss and communicate the results of model validations to key model stakeholders both orally and in a concisely written format
- Participate in Modeling, Risk Management, Bank-wide and System-Wide projects and initiatives
- Perform independent assessments of market and credit risk exposures
- Screen and evaluate market information and pricing methodologies used among the Bank mission-critical financial models and reporting systems
- Serve as Risk Management’s contact with Model Owners
Qualifications for model risk
- Expert knowledge of risk management in specific areas will be an asset
- Advanced knowledge of credit portfolio management and measurement techniques, such as methodologies of economic capital, capital allocation, RORAC, risk aggregation and diversification
- Advanced degree in a quantitative discipline such as finance, math, physics, engineering
- Bachelor's degree in Statistics, Mathematics or Calculus
- Experience in the development, implementation and/or assessment/validation of various models including framework assessment
- Detailed understanding of the relevant regulatory requirements for the subject areas and past experience working with regulatory bodies (e.g., Fed, OCC, PRA, ACPR )
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Model Risk Job Description
Job Description Example
Our company is looking to fill the role of model risk. Thank you in advance for taking a look at the list of responsibilities and qualifications. We look forward to reviewing your resume.
Responsibilities for model risk
- Perform analysis of risk and hedging strategy for the Member Failure Plan, document results for the project
- Review and verify changes in methodology, assumptions and levels of Collateral Haircuts
- Participate in model implementation and version upgrade projects
- Perform other duties or projects as may be assigned
- Liaising with various business areas
- Drive continuous improvement and assist in maintaining the MRM Policy and MRM Procedures and Guidelines to ensure they are kept relevant and up-to-date
- Seek areas of enhancement and manage AMRM’s tools and templates that support the First Line of Defense
- Assist in liaising MRM Policy and MRM Procedures and Guidelines requirements with the First Line of Defense
- Develop training materials to reiterate MRM requirements to stakeholders
- Participate as needed in special projects
Qualifications for model risk
- Bachelor’s degree in quantitative field such as Statistics, Mathematics, Economics, Financial Engineering, or Physics
- Six years’ experience with financial models
- Deep subject matter expertise
- Hands-on experience of risk and capital modeling, derivatives pricing and broader financial modeling is desirable, but regardless of experience all candidates should be able to demonstrate an understanding of capital modeling, financial and derivative products and mathematics, from private study if they have not worked in the financial sector
- Bachelor's degree in Statistics/Applied Mathematics, Finance, Economics or an equivalent combination of education and experience
- 2 years experience in risk management processes, model development/ validation, consulting, banking or other financial services industries
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Model Risk Job Description
Job Description Example
Our company is looking for a model risk. If you are looking for an exciting place to work, please take a look at the list of qualifications below.
Responsibilities for model risk
- Support model validation efforts (based on availability)
- Develop methodologies and processes used to evaluate model risk under Federal Reserve (SR 11-7) requirements for Model Risk Management
- Manage the model validation process through supervising and reviewing the work of the Model Risk Analyst(s) in the validation of models not requiring external validation
- Oversee the Model Risk Assessment process to determine the nature and extent of the Model Validation procedures
- Establish and maintain the Model Risk Management Policies and Procedures in order to fulfill strategic long-term and short-term initiatives as it relates to model validation
- Assist the Manager of ERM with other risk management projects and regulatory monitoring activities as needed
- Responsible for the model validation activities across a wide range of modeling types including market, finance, risk, credit, revenue, valuations
- Directs model validation across multiple business domains including broker-dealer, investment banking, retail banking, capital markets
- Ensures model remediation for improved local controls, governance, documentation, preparing models for independent validation, following up with corrective action plans through model owners
- Responsible for the development of Key Risk Indicators (KRI’s)
Qualifications for model risk
- Knowledge of current and proposed regulatory frameworks (FRTB in particular) for the measurement of Market Risk industry practice in Market Risk modeling is an asset
- Have more than 6 years of working experience
- 7 years of relevant work experience if candidate lacks graduate degree
- Familiarity with essential quantitative techniques used in financial models
- Knowledge of stochastic calculus, numerical techniques, statistical analysis
- Related Industry experience is a plus
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Model Risk Job Description
Job Description Example
Our company is growing rapidly and is hiring for a model risk. To join our growing team, please review the list of responsibilities and qualifications.
Responsibilities for model risk
- Perform internal audit work related to financial and statistical models and provide input to all audits involving financial and statistical models across all audit groups, support audits addressing overall model governance and model validation
- Responsible for maintaining CAS’s inventory of models and corresponding audits
- Keep abreast of current developments and identify emerging risks with CIBC, the industry and area of model risk mitigation and provide advice to business management on the need to improve controls
- Coordinate execution of MRM projects/iniatives to drive effectiveness and efficiency
- Prepare written summary and analysis of all validation work
- Implement an effective model validation framework
- Perform independent model validation, including an analysis of actual vs
- Provide technical leadership on market risk capital models and oversee multiple model review projects
- Carry out model validation activities, including model reviews projects, for market risk capital models (such as Value-at-Risk, Specific Risk, Stress VBM) across a variety of asset classes
- Liaise with Front-Office, Quants, Market Risk and Valuation Control Groups
Qualifications for model risk
- Experience in a Model Validation, Front Office Quant, Quantitative Market Risk or other relevant quantitative role
- A strong understanding of Stress Testing and VAR methodologies or cross asset pricing models
- Qualified to post-graduate level (PhD beneficial), in Mathematics, Financial Mathematics, Physics or Statistics (or equivalent qualification / experience)
- Two years or more of applied modeling, quantitative research and data analysis
- Strong risk modelling technical expertise with execution / delivery focus
- Understanding of industry-wide Risk Modelling practices and trends
5
Model Risk Job Description
Job Description Example
Our company is hiring for a model risk. Thank you in advance for taking a look at the list of responsibilities and qualifications. We look forward to reviewing your resume.
Responsibilities for model risk
- Independently sampling data sets and model assumptions, including those used in the stress testing processes
- Helping to validate internal audit and regulatory issues
- Lead a team and collaborate with other areas on a variety of model types including those used to manage credit risk and market risk, those used by AML, financial reporting, and various product areas
- Coordinate model validation across multiple business units including broker-dealer, investment banking, retail banking, and private equity
- Providing independent assessments of
- Summarizing work in formal written reports
- Prioritizing and negotiating resolution of identified model issues
- Continually staying abreast of the industry's advancements in the quantitative modeling and measurement of risks
- Write model risk management findings in technical documents that will be presented both internally (model developers, business unit managers) regulators including FRB and OCC as part of CCAR/DFAST
- Provide independent review and validation of a variety of valuation, risk, and PPNR models
Qualifications for model risk
- Ability to communicate/influence on complex issues
- Highly numerate with a high level of general intelligence
- Experience of model review and/or development of Retail credit risk models
- Experience in any of the following would be highly valued
- A postgraduate degree (or equivalent) in a quantitative discipline
- The role will involve working with an incredibly broad group of stakeholders within the firm, rolling out model risk appetite framework within bank's risk appetite program