HSBC Group

Business: Global Risk & Compliance

Open positions: 1

Role Title: VICE PRESIDENT, MODEL RISK GOVERNANCE AND STEWARDS GSC’s

Global Career Band: 4

Location (Country / City ): India / Bangalore

Recruiter Name : Priyanka Ochani

The Opportunity:

Model Risk Management (MRM) at HSBC is structured as a global function, headed up by the Chief Model Risk Officer (CMRO). The MRM function reports directly to the Group Chief Risk and Compliance Officer (GCRCO) ensuring its independence from the model developing and owning areas of the firm.

MRM are the second line of defence (2LoD) 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.

MRM is comprised of four key activities:

• Model Risk Governance - Setting the firm's model risk policies and standards, ensuring that model risk is managed within the approved tolerance levels, providing second line assurance on the implementation of policy, and monitoring regulatory developments impacting model risk.
• Model Risk Stewardship - Facilitating responsible development, understanding and use of models and analytics, as well as providing subject matter expertise, advice, guidance, and effective challenge across all entities, regions, global businesses, and functions.
• Independent Model Validation- Independently reviewing and (re)validating models, providing an objective, unbiased and critical opinion on the suitability and soundness of models for their intended use and the accuracy, relevance and completeness of outputs used to inform business decisions.
• Infrastructure - provides specialist technical expertise and are responsible for delivery of infrastructure and reporting capability used across all geographies, business, and functions to support the effective management of model risk.
• There is also a small Professional Practises team reporting directly to the CMRO who provide feedback and quality assurance on validation deliverables, ensuring consistency and facilitating the sharing of internal and external best practises.
• In addition, the CMRO oversees a team dedicated to designing and implementing a framework for the management of Artificial Intelligence and Machine Learning Risk (AI / ML).
• The Senior Manager, Regional Model Risk Governance & Risk Stewardship is responsible for providing second line of defence for HSBC’s model risk. They will contribute to the maintenance and monitoring of decisioning and risk models, strengthening the bank and providing comfort to management, regulators, customers and shareholders by ensuring that the performance of those models is transparent and that limits are visible. The role holder will advise, challenge and guide the 1LOD in model risk related matters and provide assurance that model risk policies and controls are being implemented effectively.

What you’ll do:

Principal Accountabilities and Responsibilities

• Provide oversight and engaging with senior stakeholders for model related risk stewardship within their area of responsibility, ensuring that strong risk management is embedded across the 1LOD, enabling safe growth.
• Participate in Governance Forums/Committees as required.
• Support active model risk management across their area by:
• Oversee the embedding of the Risk Taxonomy & Control Library for Model Risk.
• Review Risk and Control (RCA) scoping, and recommending changes where applicable.
• Provide ongoing oversight and challenge of the 1LOD in embedding Risk Policy and monitoring ongoing compliance to the policy.
• Support the 1LOD in setting and managing their risk appetite and risk acceptance approach including the provision of oversight and challenge to ongoing monitoring and remediation plans (as applicable).
• Deliver effective Risk Stewardship in line with the Risk Management Framework.
• Provide subject matter expertise, advice, guidance, and effective challenge to the Risk and Control Owners.
• Contribute to Enterprise Risk reporting for their area including the gathering of emerging risks and assessing the aggregate risk status for their area.
• Contribute to relevant Transformation Programmes within the Group by proactively engaging and assisting in the identification and mitigation of risk.

Leadership & Teamwork 

• Support and manage activity for the Regional Head of Model Risk Management & Risk Steward to represent Model Risk Stewardship to Country/Regional-level Executive Management and Board members.
• Liaise with 1LOD and other model stakeholders as appropriate to ensure issues have been adequately resolved.
• Communicate across technical quantitative, business and strategic levels to ensure that stakeholders understand the implications of model risks and limitations.
• Provide effective oversight and challenge to first-line risk and control owners across the end-to-end product set for model risk, whilst delivering second-line opinion and formal input and challenge across regions and countries.
• Support the Regional Head of Model Risk Management & Risk Steward in providing final regional approval of material models on behalf of the region, that are used following initial FLOD approval.
• Support the delivery of Non-Financial Risk Framework responsibilities for Model Risk within the region.
• Ensure that all Risk Steward deliverables to your stakeholders are concise, precise, impactful and actionable.
• 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.
• Participate in engagements with Regulators as required to evidence robust independent challenge of models used in HSBC.
• Contribute to management, regulatory, and external confidence in all models used across the group.

What you will need to succeed in the role:

Functional Knowledge

Knowledge:

• Significant experience of model risk management, governance and/or model development / validation.
• Significant experience of local regulators and regulations.
• Experience of managing senior stakeholder and external communications.
• Knowledge and expertise of local market and HSBC’s different business lines is preferable.

Experience:

• Proven ability to develop strong networks with key stakeholders at all points in a matrix structure, creating an ability to execute task at hand with minimum conflict.
• Providing expert advice, robust challenge and managing risk and controls

Skills:

• Ability to present complex statistical 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.

Others

The job holder will be required to:

• Support the management of model risk across a large complex banking group.
• Manage multiple senior stakeholder relationships across the HSBC matrix.
• Manage model risk whilst significant transformational activity is being implemented, both regionally and globally.
• Operate and influence within a changing and rapidly developing regulatory environment.
• Continually support HSBC's approach to conduct and cultivate a positive risk aware culture, which is designed to ensure we deliver fair outcomes for our customers and do not disrupt the orderly and transparent operation of financial markets.
• Maintain awareness of operational risk and minimise the likelihood of it occurring, including its identification, assessment, mitigation and control, loss identification and reporting in accordance with the HSBC Operational Risk Management.
• Adopt a risk management and internal control structure, referred to as the Three Lines of Defence, to ensure it achieves its commercial aims while meeting regulatory and legal requirements and its responsibilities to stakeholders, customers and staff. All staff must familiarise themselves and adhere at all times with the role and supporting responsibilities they play in the Three Lines of Defence.

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You’ll achieve more at HSBC

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.”

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