HSBC Group

Role purpose

Global Enterprise Risk Management (ERM) is a sub function of Group Risk and Compliance. Its purpose is to make sure HSBC is equipped with a coherent Risk Management Framework, Risk Taxonomy and the tools to enable it to understand and operate within its Global Risk Appetite and effectively manage its overall risk position. It seeks to strengthen the risk culture across the organisation through driving consistent risk management practices across our businesses and functions at global, regional and market level. ERM achieves this through robust oversight and stewardship of the end-to-end processes, risks, and controls ensuring it complies with risk, business and regulatory priorities. Enabling the bank to grow safely, be forward looking, and meet its strategic objectives. 

Model Risk Management (MRM) at HSBC is structured as a global function, headed up by the Chief Model Risk Officer (CMRO). MRM are the second line of defence (LOD) 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

Main activities

• Undertake model validation activities 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.
• Provide written reports detailing the results of validations highlighting issues identified during the validation.
• Validate remediation activities completed by the 1st LOD to ensure appropriate resolution of identified issues.
• Work with relevant stakeholders to embed new Global Model Risk Policies and Procedures.
• Provide model users, model owners, senior management, audit, and regulators (across 1LOD, 2LOD, 3LOD) with confidence that the models and tools developed, maintained, and used within the Group are compliant with internal and regulatory expectations and fit for the intended purpose.
• Participate at Governance Forums as required.
• Support the interaction with Group Internal Audit on model related audits, MSIIs and audit issues and ensure oversight on the implementation of any audit recommendations.
• Provide model users, model owners, senior management, audit, and regulators (across 1LOD, 2LOD, 3LOD) with confidence that the models and tools developed, maintained, and used within the Group are compliant with internal and regulatory expectations and fit for the intended purpose.
• Help build management, regulatory, and external confidence in all models used across the group.

Knowledge and Experience:

• Experience in risk management at a Globally Significant Financial Institution (GSFI).
• Understands the impact of model risk within HSBC Group and its commercial context and strategic ambitions.
• A good level of knowledge of the relevant regulatory landscape and ability to access the impact of proposed changes in regulatory rules to the bank, especially those pertaining to model risk.
• Detailed technical knowledge of modelling methodologies, techniques and regulations for the functional area.
• Detailed knowledge of statistical model and scorecard development techniques.
• Knowledge of Risk models, performance metrics and risks and associated issues.
• Knowledge of a financial institutions business model, products and key risk drivers and a demonstrated ability to effectively balance risk management, regulatory expectations and commercial pragmatism.
• A deep understanding and technical expertise of model risk including how this risk can be identified, assessed, monitored and controlled and mitigated where relevant.
• Experience with some statistical modelling software / programming language e.g. SAS, Python, R, Matlab, C++, VBA.
• Experience of developing and Risk models throughout the customer lifecycle.
• Experience of conducting independent model reviews.
• Ability to lead and promote a strong risk control culture and continually improve risk awareness.
• Proven ability to develop networks with key stakeholders in a matrix structure.
• Support a multi-locational team of professionals.
• Providing expert advice and robust challenge, delivering risk management policies and managing risks and controls.

Skills:

• Ability to present complex technical concepts and results to non-technical audiences in a persuasive and compelling manner.
• Team-oriented mentality combined with ability to complete tasks independently to a high-quality standard.
• A change agent who challenges the status quo diplomatically, constructively and positively in order to lead relevant strategies that enable safe growth of HSBC

Qualifications:

• Master’s or PhD degree in a quantitative discipline like Financial Mathematics, Statistics, Econometrics, Quantitative Finance, Economics or Engineering.

HSBC is an equal opportunity employer committed to building a culture where all employees are valued, respected and opinions count. We take pride in providing a workplace that fosters continuous professional development, flexible working and, opportunities to grow within an inclusive and diverse environment. We encourage applications from all suitably qualified persons irrespective of, but not limited to, their gender or genetic information, sexual orientation, ethnicity, religion, social status, medical care leave requirements, political affiliation, people with disabilities, color, national origin, veteran status, etc., We consider all applications based on merit and suitability to the role.