HSBC Group

Business: Global Risk & Compliance, Model Risk Management, Global Service Centre

Open positions: 1

Role Title: Assistant Vice President- Decision Science GSC’S

Global Career Band: 5

Location: Bangalore 

Recruiter Name: Imran Waheed 

Why join us?

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 Opportunity:

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 Wholesale BA&F Credit Decisioning model validation 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:

Principal Accountabilities and Responsibilities

• 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 support the embedding of new Global Model Risk Policies and Procedures.

Leadership & Teamwork 

• Provide coaching and guidance to new starters and junior colleagues.
• 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:

Knowledge 

• Candidate should have worked on Wholesale Credit models and have good understanding of Wholesale Credit Model Development/Validation. Candidate should have good understanding of wholesale credit analytics models used for the following areas:
• Model used for customer selection such as propensity recommendation, customer value, engagement, and experience.
• models used for pricing and measurement of profitability and return.
• Models used for automation and operational efficiency of credit decisions.
• Wholesale Fraud Analytics model used for fraud detection and reporting using analytics.
• Wholesale Credit Decisioning models such as acquisition and behavioural scoring models.
• He/she should be able to validate models used for different regulatory perspective such as OCC/FRB, EBA Guidelines and PRA regulations.
• Knowledge of internal procedures and local regulations and those of other country regulators would be an advantage.
• Candidate should have strong knowledge on Linear/Logistic modelling techniques. Machine learning techniques good to have.

Experience:

• Minimum 5-10 years of experience of financial model validation/development experience in Risk Management in Wholesale domain
• Proficiency in SAS / R, Python MS Office tools like Excel & PowerPoint
• Proven expertise in using statistical algorithms for solving diverse business challenges and creating significant business value.
• Experience of conducting independent model reviews.

Skills:

• Enthusiasm for proactively seeking, exploring and developing use cases for new data and/or tools/wider industry trends.
• Candidate should be able to go through vast range of documentation and come up with concise set of questions highlighting model risk in the model.
• Excellent written and verbal communication skills. Ability to develop and effectively communicate complex concepts and ideas. Experience of presenting recommendations to Senior Management.

Qualifications:

• Master's / bachelor’s degree in /Statistics/Economic/Mathematics/Engineering/Computer Science/Management or any other quantitative fields of study.

Others

The job holder will be required to:

• Manage multiple stakeholder relationships.
• Communicate complex technical modelling issues to, and deliver credible feedback to, Model Users and Model Developers.
• Liaise with Regional Model Risk Management teams and other teams within Independent Model Review to best manage the reviewing of models across all legal entities, regions, businesses and functions across HSBC.
• Have strong and broad technical expertise encompassing modelling of various product types and jurisdictions.
• Contribute to enhancing model risk management and understanding across the bank.
• Work in a rapidly changing regulatory environment and with a dynamic model delivery schedule, often within short timescales.

Link to Candidate User Guide:

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Go to the below link and type “IND GSC : IJP Applicant User Guide” in search bar.

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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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