Job Title: Assistant Vice President, Independent Model Review
Arlington Heights, IL
Accounting/Auditing, Agriculture, Forestry, & Fishing, Banking, Finance/Economics, Financial Services, Retail/Wholesale, Quality Control, Research & Development
Assistant Vice President, Independent Model Review
Conduct the validation and independent review of Risk models, Economic capital models, Stress testing models, AML models, RWA calculator, Risk Strategy models and Broker dealer reporting framework in accordance with the internal & external/regulatory guidelines. Maintain sufficient independence from the development, implementation and management of the risk and capital tools/ systems so as to remain unbiased and independent as defined and required by the regulations.
Impact on the Business
Validate and review all local risk models and analytical tools used in the estimation of the risk parameters which support the economic capital, stress testing and capital plan estimates, credit reserves (inclusive of derivatives), relationship pricing and profitability.
Validate and review AML compliance models in line with regulatory guidance and industry best practices.
Review methodology and framework of HNAH RWA calculation process for appropriateness and conceptual soundness. Review the appropriateness and relevance of the assumptions used to support the framework.
Design and execute a comprehensive and granular program of backtesting and benchmarking to support the validation of the risk rating system.
Utilize industry best practices, advanced modeling techniques, supplemented by expert judgment and qualitative evaluation, to drive a program of validation and independent review that meets the requirements and framework as defined by local and Group policy and provide credible independent challenge.
Help prepare HBUS and HNAH to be qualified for Basel AIRB by the established deadline and maintain a strong risk management function.
Customers / Stakeholders
Risk and Finance
Leadership & Teamwork
Provide feedback in the form of written reports to the Credit Review & Risk Identification team, to the Head of Credit Risk Management and to the Reviewee. File copies of all reports with the Chief Risk Officer.
Keep updated with industry best practices and changing regulatory enviornment
Lead and develop an effective team through communication, performance management, development plans and reward/recognition practices.
Promote an environment that supports diversity and reflects the HSBC brand.
Operational Effectiveness & Control
Ensure that Independent Reviews and Validations of Global models specifically address the appropriateness of the models to the local portfolios.
Where necessary, augment Global reviews with additional analysis to meet local requirements. As required, participate in the review and validation of the local and global economic and stress testing capital models.
To implement the Group compliance policy locally by containing compliance risk in liaison with the Head of Group Compliance, Global Business Compliance Officer, Area Compliance Officer or Local Compliance Officer, ensuring adequate compliance resources and training, fostering a compliance culture and optimizing relations with regulators.
Complete other responsibilities, as assigned.
Must have comprehensive understanding of the changing regulatory environment, OCC 2011-12 guidance, Basel II and Basel III guidance, CCAR guidelines, etc.
Must adapt to the evolutionary nature of the analytical processes used to model increasingly more complex portfolios, products and counterparties.
Must have a comprehensive understanding of retail credit risk, wholesale credit risk, ICAAP, EWST, economic capital concepts. Applicable Wholesale portfolios include, but not limited to SME, MME, Private Banking, CRE, GBM, along with the full range of product offerings within each business. Knowledge of market risk and counterparty credit risk would be a plus.
Must be prepared to be called on by GMO to deliver reviews of Global models, in addition to existing local priorities.
Understanding of AML framewok, relevant regulations and procedures would be a plus.
The role is subjected to constant and sustained scrutiny from internal and external auditors and multiple external regulators. Also required to serve on project committees at the HBUS, HNAH, and Global level.
The role must be able to relate complex financial theory and models to the changing economic environment, and must be able to understand the limitations of models based on historical experience.
Role is expanding to include models used to estimate Economic Capital, Stress testing, Market risk, Capital management and AML as well as the underlying risk drivers.
Management of Risk
Ensure compliance, operational risk controls in accordance with HSBC or regulatory standards and policies; and optimize relations with regulators by addressing any issues.
Observation of Internal Controls
Maintains HSBC internal control standards, including timely implementation of internal and external audit points together with any issues raised by external regulators.
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and Universities. If you would like to notify HSBC's Diversity Recruiting team of your application, please e-mail
Qualifications & Requirements
Minimum of five years proven and progressive credit and financial services experience or equivalent, including experience in advanced economic or regulatory credit risk management, credit risk modeling or wholesale lending, ICAAP, EWST, economic capital, credit audit, credit analysis or equivalent.
Minimum of a bachelors degree in business, mathematics, statistics, industrial engineering, operations research related fields or equivalent experience; Masters degree preferred for quantitative responsibilities.
Strong communications, analytical, decision-making, lateral thinking and interpersonal skills.
Knowledge of AML framework and process would be a plus.
Solid understanding of commercial and retail credit processes, including credit risk assessment and systems as well as econometrics, statistics, simulations and credit products.
Knowledge of complex financial risk modeling and analysis, including credit risk and economic capital.