Model Risk - WM & Deposits Validation: Executive Director

Morgan Stanley

Morgan Stanley is a leading global financial services firm providing a wide range of investment banking, securities, investment management and wealth management services. The Firm’s employees serve clients worldwide including corporations, governments and individuals from more than 1,200 offices in 43 countries.

The talent and passion of our people is critical to our continued success as a firm. Together, we share four core values rooted in integrity, excellence and strong team ethic:

• Putting Clients First
• Doing the Right Thing
• Leading with Exceptional Ideas
• Giving Back
• Committing to Diversity and Inclusion

Morgan Stanley is committed to helping its employees build meaningful careers and we strive to be a place for people to learn, achieve and grow.

Firm Risk Management

Firm Risk Management (FRM) enables Morgan Stanley to achieve its business goals by partnering with business units across the Firm to realize efficient risk-adjusted returns, acting as a strategic advisor to the Board and protecting the Firm from exposure to losses as a result of credit, market, liquidity, operational, model and other risks.

You will collaborate with colleagues across FRM and the Firm to protect the Firm’s capital base and franchise, advise businesses and clients on risk mitigating strategies, develop tools and methodologies to analyze and monitor risk, contribute to key regulatory initiatives and report on risk exposures and metrics to enable informed and strategic decision-making. Through thoughtful analysis and clear communication, we are best able to bring our ideas to the table and improve the Firm.

Firm Risk Management values diversity and is committed to providing a supportive and inclusive workplace for all employees.

Firm Risk Management’s unique franchise promotes:

• Flat, flexible and integrated global organization
• Collaboration and teamwork
• Credible, independent decision-making
• Organizational influence
• Creative and practical solutions
• Meritocratic and diverse culture

Background on the Position: 

This role will reside within Firm Risk Management’s Model Risk Management team responsible for the Firm’s management of model risks related to the implementation and use of valuation, risk, and stress testing models and tools.  This position requires strong risk management mindset, proven subject matter expertise in financial crime regulatory requirements and model validation, and excellent technical, leadership, and organizational skills. 

Primary Responsibilities:

• Lead and perform independent model reviews compliant with Model Risk Management policies and procedures, regulatory guidance and industry leading practices, including evaluating conceptual soundness, quality of modeling methodology, model limitations, data quality, and on-going monitoring for Firm's pricing, validation, risk, and capital planning models and tools.
• Understand the use and effectiveness of models and tools within the context of relevant Firm businesses and processes.
• Communicate model and tool validation conclusions to relevant stakeholders and work with relevant 1LOD and 2LOD functions to develop appropriate remedial actions to effectively resolve identified model and tool issues. Track progress against model and tool issue remediation actions and take appropriate review actions to resolve.
• Write comprehensive and high-quality review reports for models and tools validated, and oversee and train validation team(s) in writing such reports.
• Proactively identify and escalate thematic and idiosyncratic risk themes related to the models and tools under the coverage area. Engage with relevant stakeholders in identifying effective approaches to managing such risks.
• Support high-profile, time-sensitive deliverables with limited supervision
• Establish and sustain productive relationships with model stakeholders in 1LOD, 2LOD and 3LOD
• Represent the Model Risk Management team in interactions with Internal Audit department and with regulatory agencies as required

Required Experience:

• 10 or more years in validating pricing, valuation, risk, capital planning, or stress testing models
• Proficiency in statistical software packages, data mining and machine learning techniques
• Familiarity with regulatory requirements e.g., Comprehensive Capital An