Model Validation Analyst

Company: MSUFCU
Location: East Lansing
Posted on: June 19, 2022

Job Description:

Position Summary

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.

Work Location:

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 analysis

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 regulatory guidance.

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 tests.

Challenges Machine Learning modelling techniques and their related risk.

Builds benchmark and test models used in model validation.

Contribute to monitoring model validation findings and evaluating remediation actions

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 recommendations.

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 issues.

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 validation.

Ensures processes and procedures used in model validation process are appropriate for the size and complexity of the Credit Union and its models.

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 occasional basis.

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 level.

Knowledge, Skills, and Abilities Required

Model Validation Analyst:

Bachelors degree required, masters degree preferred; business, finance, accounting, economics, or a quantitative analysis discipline preferred.

Knowledge of common financial institution modeling and model validation approaches.

Knowledge of the Bricks or similar ALM modeling software preferred.

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 business preferred.

Knowledge or experience of the quantitative and qualitative risk factors, industry risks, competition risks, and risk management approaches preferred.

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 Manager.

Ability to effectively work under pressure and successfully manage multiple activities.

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 management skills

Senior Model Validation Analyst:

All of Model Validation Analyst I knowledge, skills, and abilities.

Ability to analyze and resolve increasingly complex problems at a satisfactory level.

Advanced level of proficiency using Microsoft Excel

Demonstrates an expert level knowledge of Credit Union policies, procedures, and regulatory requirements affecting the items under review.

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 exposure

This position is able to work in hybrid or onsite working arrangements.

Equal Opportunity Employer/Protected Veterans/Individuals with Disabilities

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 60-1.35(c)

Keywords: MSUFCU, East Lansing , Model Validation Analyst, Accounting, Auditing , East Lansing, Michigan