POSITION SUMMARY
Reporting to the ERM Manager, the Model Risk Manager is responsible for maintaining the Model Risk Management (“MRM”) program by carrying out the various activities promulgated by the program. The incumbent manages the Bank’s model validation program using third-party providers as well as by performing internal validations. The position also requires the incumbent to conduct ongoing risk assessments, ensuring line of business partners are communicating key risks affecting the models they operate, as well as maintain a standardized set of model governance documentation, procedures, and model performance monitoring records.
MAJOR JOB RESPONSIBILITIES
Maintain the MRM program, including the model governance framework, policies, procedures, and standards for activities including model development, validation, implementation, and monitoring. Oversee the development and implementation of new models or modifications to existing models used for various purposes, such as credit and capital risk assessment, pricing, and forecasting. Assess the potential risks associated with the use of specific models, including model limitations, assumptions, and uncertainties, and implement controls to mitigate these risks. Monitor the performance of models over time to identify any issues or changes in model behavior, taking corrective actions as necessary. Perform back-testing as warranted. Perform (or oversee the performance of validations by a third-party) validations and presentation of results to the Model Risk Management Committee of the Bank’s models by applying industry accepted methods around conceptual soundness, methodology, and implementation. Oversee monitoring of ongoing model performance to assess model accuracy, reliability, and ensure compliance with regulatory requirements and internal standards. Maintain comprehensive documentation for all models, including specific model documentation, validation reports, and related policies and procedures. Continuously review and enhance the model risk management framework and processes to adapt to changing business needs, regulatory requirements, and industry best practices. Report to key stakeholders, including senior management, risk committees, auditors, and regulators, regarding model risk management activities, findings, and recommendations. NOTE- The scope of these responsibilities extends to management’s use of third-party models, where appropriate frameworks and risk management is expected, as well as management’s use of critical tools that, while not meeting the definition of a model, requires appropriate consideration within the Bank’s MRM program. Assist in the development, implementation, and operation of the Bank’s 2nd line responsibilities relating to data controls, oversight, and governance, in particular as it relates to the assessment and use of data in the Bank’s model. Support the enterprise risk management effort as delegated by the ERM Manager. This may include second line risk activities such as the identification, evaluation, understanding, management, and communication of business risks, identifying gaps that may be present, and facilitating the creation and follow through on management action plans. Work with ERM manager as assigned to ensure complete, high-quality information flow to executive management, risk management committees and the Risk Committee and/or the Board of Directors.
SUPERVISORY RESPONSIBILITIES
Overseeing third party staff supplementation in the conduct of model validation, and, if the Bank makes determination to transition validations in-house, the potential supervision of staff.
SKILLS AND TRAINING
Strong knowledge and understanding of regulatory expectations for model risk management, including SR 11-7, “Guidance on Model Risk Management” and other related regulations. Strong quantitative analytics skills, especially in statistical forecast and modeling. Data driven mindset, and excellent ability to analyze data. Familiarity with the concepts of banking Capital Sufficiency, Liquidity, Asset and Liability Management, Fraud and CECL modeling. Familiarity with regulations, standards and industry practices related to quantitative modeling, risk management and stress testing. Demonstrated conceptual thinker with the ability to analyze complex problems that include interrelationships and dependencies in order to identify common themes and solutions. Ability to assess complex issues, apply analytical techniques and structure potential solutions; form partnership with a broad range of stakeholders to drive resolution. Ability to interact and communicate effectively with senior and executive management to develop collaborative relationships across the organization, and a proactive approach in communicating in promoting an appropriate level of engagement in MRM activities.
EDUCATION
Individual with financial industry experience working within model risk management or relating to the use of models, with sufficient quantitative and technical experience to perform validations. Prefer, though not required, a degree or concentration in quantitative fields such as math, physics, engineering, computer science, or financial engineering.
WORK EXPERIENCE
Minimum of 4 years of experience in quantitative analysis related to model risk management, include statistical analysis, modeling, and/or other quantitative disciplines i.e. validation. Minimum of 2 years in model risk governance, model risk audit, or risk management.
LICENSES AND/OR CERTIFICATES
None required but risk management-related certification or a principles-based certification that demonstrates a mastery in a framework or methodology is preferred.
WORKING CONDITIONS
Work is performed in a normal office environment. Noise levels are usually moderate.
HAZARDS
The hazards are mainly those present in a normal office setting.
This job description may not be all-inclusive. Employees are expected to perform other duties as assigned and directed by management. Job descriptions and duties may be modified when deemed appropriate by management.
Provident Bank recognizes and supports the importance of creating a socially and culturally diverse employee base. We understand, value, and appreciate the unique perspectives that a diverse workforce can contribute to our organization. We put the employee and the customer at the center of strategy because culture is a critical differentiator for why people choose to work here.
We are an equal opportunity employer, and all qualified applicants will receive consideration for employment without regard to age 40 and over, color, disability, gender identity, genetic information, military or veteran status, national origin, race, religion, sex, sexual orientation or any other applicable status protected by state or local law.
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