HSBC Group

Business:  Global Risk & Compliance

Open positions:1

Role Title: AVP / Lead AVP / Senior AVP, IMR Insurance GSC’s

Global Career Band: 5

Location (Country / City ): India/Gurugram

Recruiter Name : Imran Waheed

The Opportunity:

Role purpose

• 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).
• Independent Model Validation is a specialist quantitative role within the Model Risk Management team responsible for carrying out independent validations of HSBC’s model landscape, in order to identify and communicate model limitations and issues. This role is part of the Insurance & Pensions IMR team.
• Independent Model Validation provides independent challenge of a model’s underlying theoretical assumptions and limitations, its practical implementation, its live application and business usage, providing stakeholders (including model users, senior management, audit and regulators) with assurance that models and tools developed, maintained and used within HSBC Group are fit for their intended purposes and are compliant with applicable internal and supervisory expectations. They will also review remediation plans and activities, undertake portfolio level reviews across model types and challenge the model owners on the appropriate application of relevant policy of models.
• Model types include but are not limited to Credit Risk models (Retail and Wholesale), IFRS9 models, Stress Testing and Scenario Analysis models, Economic Capital models, Financial Vulnerability models, Pricing models, Traded Risk models, Insurance Risk models and models covering non-financial areas e.g., transaction monitoring, customer selection and human resources. This includes the traditional model types as well as modern approaches such as machine learning (ML) and artificial intelligence (AI) techniques.

What you’ll do:

• 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 ILOD 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.

Leadership & Teamwork 

• Support the recruitment and retention of junior colleagues and provide coaching and guidance.
• Lead model validation activities including planning and stakeholder management.
• Deliver, high quality, timely validation reports that add value to the business.
• 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.
• Contribute to management, regulatory, and external confidence in all models used across the group.

What you will need to succeed in the role:

• Strong technical knowledge of actuarial models and techniques across some of the traditional acutarial areas such as statutory valuation, risk based capital reporting (Solvency II / HK RBC / Singapore RBC2), embedded value reporting, financial reporting (IFRS17), business planning, experience analysis, product pricing etc.
• Strong understanding of operation of par business including stochastic modelling, dynamic policyholder behaviour, modelling of management actions etc.
• Experience of modelling (coding) in any of the actuarial cash flow modelling software (such as Prophet, RAFM) as a coder is desirable. Should have atleast worked as a model user.
• Experience in pensions modelling would be an added bonus 
• Knowledge or awareness of model risk regulations such as SR 11-7 or SS 1/23 would be an added bonus
• Ability to present complex statistical concepts and results to non-technical audiences in a persuasive and compelling manner.
• Strong communication and interpersonal skills
• Ability to form effective relationships with model developers and owners and key senior stakeholders within the Insurance, Pensions and Wealth teams and across the Bank
• Effective report writing skills and experience
• High attention to detail
• Drive to understand
• Ability to prioritise competing demands and demonstrate flexibility to meet dynamic requirements
• Bachelor’s or Master’s or PhD degree in a quantitative discipline like Financial Mathematics, Statistics, Econometrics, Quantitative Finance, Economics or Engineering. 
• Atleast 10 actuarial exams (as per old curriculum), preferably fully qualified, with over 5-10 years’ experience in the insurance industry.
• 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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