Model Validation Analyst
Location: East Lansing
Posted on: June 19, 2022
Responsible for assisting the Risk Management Manager with
facilitating a model validation program in accordance with industry
best practices and regulatory expectations. Responsibilities
include review and validation of models used by various departments
at the Credit Union for varied purposes, including capital stress
testing, asset liability management and pricing and profitability.
Responsible for managing the execution of validation activities for
financial models, acquisition and portfolio management scorecards,
AML models and anti-fraud tools in accordance with the governance
framework, policies and procedures, and provide recommendations for
continuous model enhancements across the enterprise.
This position is a hybrid role with a combination of working both
onsite at the Headquarters 1 building in East Lansing and remotely.
A schedule of expected onsite and remote workdays will be discussed
during the interview process.
Essential Duties and Responsibilities
Model Validation Analyst:
Performs independent model validations and effective challenge of
financial and account management models such as balance sheet/ALM,
revenue, expense, credit loss, economic and regulatory capital,
artificial intelligence (AI) models, BSA/AML/OFAC models, and
operational risk models.
Executes independent validations of models based on internal Model
Risk Management policy and procedures, regulatory guidance, and
industry leading practices
Plans validation work to incorporate evaluation of conceptual
soundness and modeling methodology, model assumptions and
weaknesses, data relevance and completeness, and outcome
Reviews and completes model validation reports ensuring that they
meet internal standards.
Proactively identifies emerging model risk issues impacting the
Credit Union and communicates to model developers, senior
management and the risk management committees.
Interprets model validation test results and establishes required
action plans with model owners/developers and communicates findings
and recommendations from model validation reports to model owners
and model users, as applicable
Develops and maintains analytical reports and presentations for
senior management, executive committees and regulatory exams.
Actively participates in the production, maintenance and compliance
with model validation policies, standards and procedures.
Maintains standardized model validation documentation, and keeps up
to date with regulations, regulatory exam requirements and
Interacts with external regulators and internal auditors to
demonstrate the operational soundness and effectiveness of the
model validation process.
Leverages data analytics tools; queries data from multiple sources
and platforms and able to design and implement validation
Challenges Machine Learning modelling techniques and their related
Builds benchmark and test models used in model validation.
Contribute to monitoring model validation findings and evaluating
Participates in efforts to develop, implement and enhance model
risk management practices including developing policies and
procedures for model owners and developers.
Owns and maintains a comprehensive inventory of models.
Owns and maintains comprehensive reporting on the population of
identified deficiencies, remediation status, and other critical
data elements with respect to remediation.
Prepares and executes model risk assessments. Analyzes results and
present findings to management.
Coordinates and prepares model risk reporting for Senior Management
and the Board of Directors.
Provides critical analysis and effective thought process and
challenges for models reviewed and validations performed by both
internal and external parties.
Serves as a key resource on model concepts and assumption change
questions including ability to understand impacts through
Works closely with business owners/model users and developers to
understand the business context for model use, and facilitates the
model approval process.
Works with the lines of businesses to identify any modeling gaps,
errors or oversights and recommend ways to address these
Reviews to confirm models maintain proper controls, appropriate
assumptions and adequate documentation in place.
Coordinates the engagement of third parties to perform validation,
as appropriate, and review the results of third party
Ensures processes and procedures used in model validation process
are appropriate for the size and complexity of the Credit Union and
Keeps the VP of Risk Management updated regarding validation
progress, overall risk themes, and findings.
Assists in the development of analytical, systems, and data
management capabilities to support model validation.
Develops a strong working knowledge of the businesss operations,
finances, compliance issues, services, and products.
Provides value-added recommendations for process improvement on an
Support regulatory exams and audit processes.
Work outside of normal business hours may occasionally be necessary
to complete projects and department objectives.
Participates in training activities within your department and with
the learning and talent development department; such training helps
to ensure staff compliance with Credit Union policies and state and
federal regulations and laws.
Performs other duties and assist other employees, as assigned.
Senior Model Validation Analyst:
All of Model Validation Analyst duties and responsibilities.
Performs all tasks consistently and accurately.
Identifies changes to Credit Union processes, procedures, or
regulatory requirements that will impact the duties of the
department and proactively recommend updates to departmental
processes and procedures to adapt to Credit Union changes in a
timely manner and on a regular basis.
Demonstrate the ability to independently plan, perform, and
complete projects within reasonable time frames.
Demonstrate the ability to accept increasingly complex duties and
responsibilities and perform additional duties to a satisfactory
Knowledge, Skills, and Abilities Required
Model Validation Analyst:
Bachelors degree required, masters degree preferred; business,
finance, accounting, economics, or a quantitative analysis
Knowledge of common financial institution modeling and model
Knowledge of the Bricks or similar ALM modeling software
Understanding of various financial management principles (e.g.,
Liquidity, Market Risk, Asset/Liability) and regulatory compliance
requirements for financial institutions.
Demonstrate excellent quantitative analytical skills.
Advanced understanding of applicable laws, regulations, financial
services, and regulatory trends that affect assigned line of
Knowledge or experience of the quantitative and qualitative risk
factors, industry risks, competition risks, and risk management
Ability to think critically and independently, devote significant
attention to details, remain highly organized, and clearly
communicate complex material to management.
Ability to use independent judgment, discretion and take initiative
in absence of specific direction from the Risk Management
Ability to effectively work under pressure and successfully manage
Ability to establish and maintain harmonious team-oriented working
relationships with co-workers, and external contacts, and work
effectively in a professional team environment.
Intermediate level of proficiency using Microsoft Excel
Demonstrated independence, teamwork and leadership skills. Ability
to work with multiple teams, and strong work ethic.
Excellent interpersonal, written and verbal communication.
Strong organizational, problem-solving, negotiation, and project
Senior Model Validation Analyst:
All of Model Validation Analyst I knowledge, skills, and
Ability to analyze and resolve increasingly complex problems at a
Advanced level of proficiency using Microsoft Excel
Demonstrates an expert level knowledge of Credit Union policies,
procedures, and regulatory requirements affecting the items under
Physical Demands and Work Environment
May be required to remain in a stationary position for an extended
period of time.
Ability to operate standard office technology, equipment and tools,
which may include many hours of computer and phone usage.
Occasionally needs to move about inside of office area
Exposure to potentially hazardous condition, i.e. robbery. Receives
detailed instructions and procedures to be followed to minimize the
This position is able to work in hybrid or onsite working
Equal Opportunity Employer/Protected Veterans/Individuals with
The contractor will not discharge or in any other manner
discriminate against employees or applicants because they have
inquired about, discussed, or disclosed their own pay or the pay of
another employee or applicant. However, employees who have access
to the compensation information of other employees or applicants as
a part of their essential job functions cannot disclose the pay of
other employees or applicants to individuals who do not otherwise
have access to compensation information, unless the disclosure is
(a) in response to a formal complaint or charge, (b) in furtherance
of an investigation, proceeding, hearing, or action, including an
investigation conducted by the employer, or (c) consistent with the
contractor's legal duty to furnish information. 41 CFR
Keywords: MSUFCU, East Lansing , Model Validation Analyst, Accounting, Auditing , East Lansing, Michigan
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