E*TRADE

  • Manager, Model Validator

    Job Locations US-VA-Arlington
    Posted Date 2 months ago(1/8/2019 9:15 AM)
    Requisition ID
    2019-11500
    Professional Area
    Risk Management
  • Who We Are

    More than 30 years ago, E*TRADE pioneered the online brokerage industry by executing the first-ever electronic individual investor trade. While the landscape of our industry has changed dramatically, our culture of innovation and drive to make online trading accessible to everyone continues to drive us forward. We believe in challenging the status quo, fostering an environment of curiosity and learning, and, above all, putting our customers first.

    About the Role

    SUMMARY

     

    A Manager will perform model validations projects on a variety of models employed in the banking, brokerage and wealth management areas. At E*TRADE, models are used for managing interest rate, market, margin, credit and operational risks; valuing securities portfolios and financial instruments; monitoring customer activities for fraud and anti-money laundering; providing analytical tools and retirement planning advisory services to clients; and analyzing opportunities for marketing campaigns.
    The Model Risk Management Group (MRMG) staff have the opportunity to work with leaders in multiple critical business domains and apply analytical skills to assess and enhance model risk management processes across the company.

     

    RESPONSIBILITIES

    • Take ownership of the risk management oversight of a subset of models employed at E*TRADE. The subset can be expected to consist of a variety of models in terms of modeling approach and use;
    • Lead and perform end-to-end validations of a variety of models employed at E*TRADE. End-to-end validations involve:
      • Understanding the business area and function that uses the model, and the impact of the model output on the business decisions
      • Identifying the key risks associated with a model based on exploratory research, discussions with the model stakeholders and an understanding of the business area in which they are employed
      • Planning and documenting a risk-based model validation plan (i.e., scope, approach and timeline) that focuses on the key risks identified and covers the required aspects of the model validation such that the validation complies with the MRMG’s Policy and Procedure
      • Designing and conducting validation tests that adequately challenge the model and are in alignment with the validation plan (e.g., testing the modeling framework; methodology; modeling choices such as input data and implications of assumptions; outputs; implementation, execution; testing and controls; usage; ongoing monitoring of model performance and modeling choices; and limitations of the model being validated)
      • Strategizing and executing the model validation plan (e.g., managing resources, timelines, communication with the model stakeholders)
      • Assessing the reasonableness of model design and modeling choices, the reliability/accuracy of model outputs (as applicable), the adequacy of the model stakeholders’ governance processes and management of model risk against the expectations set out in the MRMG’s Standard for model developers and users
      • Identifying and effectively articulating to the model stakeholders any gaps or concerns arising from the model validation process and forming conclusions the propriety of the model for its intended use(s) and model governance based on the analysis as outlined above
      • Drafting, finalizing and distributing the model validation report which articulates the MRMG’s effective challenge of the model, including details of testing performed, conclusions, issues (if any) and model ratings
      • Preparing a model validation report that details the validation scope, testing approach, test results, findings and conclusions
    • Track the resolution and remediation of validation issues including:
      • Working with issue owner/model stakeholders and the MRMG’s management to finalize an acceptable issue remediation action plan (i.e., timeline and actions) for each issue identified
      • Periodically following up with the issue owner to obtain a current status of progress against the plan
      • Reviewing evidence of remedial action plan completion and providing feedback to the issue owner/model stakeholders/MRMG management on whether it is adequate to close the issue
      • Drafting and finalizing issue closure memos to evidence that an issue has been adequately resolved
      • Escalating to MRMG management in a timely manner concerns around the timeliness or adequacy/effectiveness of the remedial actions, as needed.
    • Track the ongoing monitoring of the performance and modeling choices of the subset of models that is assigned to the Manager. This includes:
      • Ensuring that the model stakeholder provides model monitoring results to the MRMG in a timely manner, as articulated in the model monitoring plan
      • Escalating to the MRMG management in a timely manner concerns regarding governance around model performance and modeling choices, or model performance breaches, if any
      • Preparing summaries of model monitoring results based on review and analysis of materials gathered from the model stakeholders
    • Periodically support MRMG’s governance function by:
      • Performing model assessments
      • Completing model identification and classification forms
      • Supporting the preparation of reports and other materials for Committee meetings or ad-hoc presentations
      • Supporting regulatory exams and internal audits that require participation by the MRMG
    • Build and sustain positive and collaborative working relationships with model stakeholders
    • Supervise and mentor 1-2 staff validators, which may include consultants or contractors

    Qualifications

    Basic

    • Advanced degree in Econometrics, Finance, Mathematics, or Engineering or Data Sciences
    • 7-9 years of experience in a financial institution validating models that cover some of the areas detailed in the Summary section

    Preferred

    • Working knowledge of the OCC 2011-12 and SR 11-7 guidance and the practical application of the guidance in a financial institution
    • Prior experience in market risk, derivatives pricing, marketing or Fraud operations/Anti-Money Laundering (AML) is a plus
    • Advanced skills in one or more of the following software packages: R, Python, SAS, MATLAB, VBA, SQL, PERL
    • Ability to work effectively in a high pressure, fast paced environment with multiple validation projects, deadlines, stakeholders and competing priorities
    • Demonstratable ability to produce clear, concise work products (e.g., reports, white papers, published articles, presentations)
    • Prior experience with managing validation projects and staff

     

    We offer a competitive and comprehensive benefits package. Please visit https://www.etradecareers.com/why-work-at-etrade/employee-benefits/ to learn more about the opportunities.


    E*TRADE Financial is an Equal Opportunity Employer who encourages diversity in the workplace. All qualified applicants will receive consideration for employment without regard to race, color, national origin, religion, sex, age, disability, citizenship, marital status, sexual orientation, gender identity, military or protected veteran status, or any other characteristic protected by applicable law.

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