Associate Director, MRM Validation Lead

Job description

**Some careers have more impact than others** . If you’re looking for a career where you can make a real impression, join HSBC and discover how valued you’ll be.HSBC is one of the largest banking and financial services organisations in the world, with operations in 62 countries and territories. We aim to be where the growth is, enabling businesses to thrive and economies to prosper, and, ultimately, helping people to fulfil their hopes and realise their ambitions.We are currently seeking an experienced professional to join our team in the role of **Associate Director, MRM Validation Lead** **.** **Model Risk Management** - 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. - 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. - 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)- IRB/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 e.g., 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. - This job description is for Retail Credit Independent Model Validation team. **In This Role, You Will** - Undertake measures to independently execute end-to-end model validations 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. - Design, develop, and execute testing frameworks, tailored to specific model complexities to identify risks and limitations. Develop and implement advanced validation methodologies and tools to enhance the efficiency and effectiveness of the validation process. - Responsible for ensuring the execution of model validation projects within their functional stream, ensuring timely delivery and quality of work. Contribute to the continuous improvement of validation processes and methodologies, suggesting enhancements and opportunities to streamline processes. - Lead discussions and negotiate with model developers and business owners regarding validation outcomes including identified issues and limitations, remediation actions, and when required defending validation conclusions effectively. - Guide the interaction with Group Internal Audit on model related audits, MSIIs and audit issues. - Proactively participate in strategic initiatives for MRM, being a champion of changes and proactively making suggestions for improvements. Collaborate closely with senior managers in Global Businesses and Functions in order to plan, prioritise and deliver model risk management activities that are aligned with business strategic goals and priorities, whilst ensuring strong second line independence and oversight is maintained. - Guide the Global Model Risk Steward by ensuring that potential model risk issues, impacts to risk appetite, internal and external audit findings and regulatory issues are managed appropriately and escalated in a timely manner as required. Guide the preparation and delivery of model risk management opinions and papers for inclusion in first and second line senior governance forums, including Coun