HSBC Group

Business: Risk & Compliance

Open positions:1

Role Title: Analyst - Decision Sciences GSC’s

Global Career Band: 6

Location (Country / City ): India- Bangalore / Kolkata / Gurugram

Recruiter Name : Srikant S

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 Compliance 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 and testing 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.

Leadership & Teamwork 

• Communicate technical model related information and results to Model Owners and Model Users through the course of a validation.
• Contribute to management, regulatory, and external confidence in all models used across the group.
• Deliver, high quality, timely validation reports that add value to the business.

What you will need to succeed in the role:

Functional Knowledge

Knowledge:

• Basic knowledge in Financial Crime and/or Regulatory Compliance Modelling and an awareness of Anti Money Laundering regulatory requirements.
• Knowledge of statistical model and scorecard development techniques.
• Knowledge of Risk models, performance metrics and risks and associated issues.
• Some knowledge of internal procedures and local regulations and those of other country regulators would be an advantage.

Experience:

• Minimum 1-5 years of experience of model validation/development experience in Compliance domain espl in Financial Crime models and Regulatory Compliance models
• Experience with some statistical modelling software / programming language e.g. SAS, Python, R, Matlab, C++, VBA.
• Experience of developing and reviewing models throughout the customer lifecycle.
• Experience of conducting independent model reviews is beneficial.

Skills:

• Good written and verbal communication skills.
• Team-oriented mentality combined with ability to complete tasks independently to a high-quality standard.
• Master’s or PhD degree in a quantitative discipline like Financial Mathematics, Statistics, Econometrics, Quantitative Finance, Economics or Engineering. 

Others

The job holder will be required to:

• Support the management of model risk across a large complex banking group.
• Manage model risk whilst significant transformational activity is being implemented, both regionally and globally.
• Operate 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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