Vice President

Business: Risk & Compliance

Open positions: 1

Role Title: Vice President / Lead Vice President, Independent Model Review GSC’s

Global Career Band: 4

Location: Bangalore / Kolkata / Gurugram

Why join us?

Role purpose

Model Risk Management (MRM) at HSBC is structured as a global function, headed up by the Chief Model Risk Officer (CMRO). The MRM function reports directly to the Group Chief Risk and Compliance Officer (GCRCO) ensuring its independence from the model developing and owning areas of the firm.  MRM are the second line of defence (2LoD) for Model Risk and the CMRO is the global Model Risk Steward for the group and is also accountable for the global operation of the MRM function. MRM teams are based in each region, to ensure local subject matter expertise and to guide, review, and challenge. MRM activity is managed on a global basis as many models are used in multiple locations. This enables MRM to operate consistently and efficiently globally, and to take account of additional local regulatory requirements. 

MRM is comprised of four key activities:

Model Risk Governance - Setting the firm's model risk policies and standards, ensuring that model risk is managed within the approved tolerance levels, providing second line assurance on the implementation of policy, and monitoring regulatory developments impacting model risk. Model Risk Stewardship - Facilitating responsible development, understanding and use of models and analytics, as well as providing subject matter expertise, advice, guidance, and effective challenge across all entities, regions, global businesses, and functions. Independent Model Validation - Independently reviewing and (re)validating models, providing an objective, unbiased and critical opinion on the suitability and soundness of models for their intended use and the accuracy, relevance and completeness of outputs used to inform business decisions. Infrastructure - provides specialist technical expertise and are responsible for delivery of infrastructure and reporting capability used across all geographies, business, and functions to support the effective management of model risk.

In addition, the CMRO oversees a team dedicated to designing and implementing a framework for the management of Artificial Intelligence and Machine Learning Risk (AI / ML). 

Independent Model Validation is a specialist quantitative role within the Model Risk Management team responsible for carrying out independent validations of HSBC’s model landscape, in order to identify and communicate model limitations and issues.  Independent Model Validation provides independent challenge of a model’s underlying theoretical assumptions and limitations, its practical implementation, its live application and business usage, providing stakeholders (including model users, senior management, audit and regulators) with assurance that models and tools developed, maintained and used within HSBC Group are fit for their intended purposes and are compliant with applicable internal and supervisory expectations. They will also review remediation plans and activities, undertake portfolio level reviews across model types and challenge the model owners on the appropriate application of relevant policy of models.  Model types include but are not limited to Credit Risk models (Retail and Wholesale), IFRS9 models, Stress Testing and Scenario Analysis models, Economic Capital models, Financial Vulnerability models, Pricing models, Traded Risk models, Insurance Risk models and models covering non-financial areas , transaction monitoring, customer selection and human resources. This includes the traditional model types as well as modern approaches such as machine learning (ML) and artificial intelligence (AI) techniques.

What you’ll do:

Principal Accountabilities and Responsibilities

Undertake model validation activities as dictated by the Global Model Risk Policy including the assessment of; model inputs, calculations, reporting outputs, conceptual soundness of the underlying theory and the suitability of the use for its intended purpose, relevance and completeness of data, qualitative information and judgements, documentation, and implementation of the model. Provide written reports detailing the results of validations highlighting issues identified during the validation. Validate remediation activities completed by the ILOD to ensure appropriate resolution of identified issues. Work with relevant stakeholders to embed new Global Model Risk Policies and Procedures. Provide model users, model owners, senior management, audit, and regulators (across 1LOD, 2LOD, 3LOD) with confidence that the models and tools developed, maintained, and used within the Group are compliant with internal and regulatory expectations and fit for the intended purpose. Participate at Governance Forums as required.

Leadership & Teamwork

Provide functional leadership for a small team of Model Validators operating across geographies and the HSBC matrix. Support the recruitment and retention of junior colleagues and provide coaching and guidance. Lead model validation activities including planning and stakeholder management. Deliver, high quality, timely validation reports that add value to the business. Liaise with 1LOD and other model stakeholders as appropriate to ensure issues have been adequately resolved. Communicate across technical quantitative, business and strategic levels to ensure that stakeholders understand the implications of model risks and limitations. Support the interaction with Group Internal Audit on model related audits, MSIIs and audit issues and ensure oversight on the implementation of any audit recommendations. Participate in engagements with Regulators as required to evidence robust independent challenge of models used in HSBC. Contribute to management, regulatory, and external confidence in all models used across the group Requirements

What you will need to succeed in the role:

Functional Knowledge

Knowledge :

Knowledge in one or more of the following areas: Stress Testing and Scenario Analysis models, Traded Risk and Pricing Models, Global Markets Trading & Hedging models, Asset Liability Models, etc. Comprehensive knowledge of statistical model and scorecard development techniques. Detailed knowledge of Risk models, performance metrics and risks and associated issues. Detailed knowledge of internal procedures and local regulations and those of other country regulators would be an advantage.

Experience :

Experience with some statistical modelling software / programming language SAS, Python, R, Matlab, C++, VBA. Experience of developing and reviewing models throughout the customer lifecycle. Experience of presenting recommendations to Senior Management. Experience of conducting independent model reviews. 

Skills :

Ability to present complex statistical concepts and results to non-technical audiences in a persuasive and compelling manner. Team-oriented mentality combined with ability to complete tasks independently to a high-quality standard. 

Qualifications:

Master’s or PhD degree in a quantitative discipline like Financial Mathematics, Statistics, Econometrics, Quantitative Finance, Economics or Engineering

What additional skills will be good to have?

The job holder will be required to:

Support the management of model risk across a large complex banking group. Manage multiple senior stakeholder relationships across the HSBC matrix. Manage model risk whilst significant transformational activity is being implemented, both regionally and globally. Operate and influence within a changing and rapidly developing regulatory environment. Continually support HSBC's approach to conduct and cultivate a positive risk aware culture, which is designed to ensure we deliver fair outcomes for our customers and do not disrupt the orderly and transparent operation of financial markets. Maintain awareness of operational risk and minimise the likelihood of it occurring, including its identification, assessment, mitigation and control, loss identification and reporting in accordance with the HSBC Operational Risk Management.

Adopt a risk management and internal control structure, referred to as the Three Lines of Defence, to ensure it achieves its commercial aims while meeting regulatory and legal requirements and its responsibilities to stakeholders, customers and staff. All staff must familiarise themselves and adhere at all times with the role and supporting responsibilities they play in the Three Lines of Defence.

You’ll achieve more at HSBC

HSBC is an equal opportunity employer committed to building a culture where all employees are valued, respected and opinions count. We take pride in providing a workplace that fosters continuous professional development, flexible working and, opportunities to grow within an inclusive and diverse environment. We encourage applications from all suitably qualified persons irrespective of, but not limited to, their gender or genetic information, sexual orientation, ethnicity, religion, social status, medical care leave requirements, political affiliation, people with disabilities, color, national origin, veteran status, etc., We consider all applications based on merit and suitability to the role.” 

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