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Model Risk (Risk Management)

AT Morgan Stanley
Morgan Stanley

Model Risk (Risk Management)

London, United Kingdom

Firm Risk Management (FRM) supports Morgan Stanley to achieve its business goals by partnering with business units across the Firm to realize efficient risk-adjusted returns, acting as a strategic advisor to the Board and protecting the Firm from exposure to losses as a result of credit, market, liquidity, operational, model and other risks.

This role resides within Firm Risk Management's Model Risk Management Department which is dedicated to providing independent model risk control, review and validation of models used by Morgan Stanley. These include derivative pricing models utilized across product areas, including interest rates, currencies, commodities, equities, credit, and securitized products. This is in addition to oversight of models used to monitor credit risk (IRB), counterparty credit risk (CVA/IMM), market risk (IMA), operational risk, capital and liquidity stress tests.

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Model Risk Management (MRM) professionals in New York, London, Budapest, Frankfurt, Mumbai and Tokyo work closely with business quantitative strategists, risk analytics, risk managers and financial controllers. The London team works collaboratively with members of Model Risk Management across all model areas globally.

What you'll do :
  • Conduct model validation for Internal-Based Rating (IRB) models, predominantly wholesale IRB, by challenging model assumptions, mathematical formulation, and implementation
  • Conduct independent testing to assess model accuracy and robustness under different scenarios and market conditions
  • Assess and quantify model risks due to model limitations and develop compensating controls
  • Develop high-quality validation reports highlighting risks and limitations of models and communicate findings to stakeholders, senior management
  • Collaborate with Global MRM teams, Developers, Model Control Officers, Valuation Control and Risk Managers to manage model risk across the model lifecycle
  • Contribute to cultivating and managing effective relationships with regulators by providing accurate and timely submissions FRM is committed to creating and providing opportunities that enable our workforce to reflect diverse backgrounds and views.

What you'll bring to the role:
  • Masters or Ph.D. degree (or equivalent) in Finance, Economics, Mathematics, Physics, Engineering, or a related quantitative field
  • In-depth knowledge of mathematical finance, derivative pricing, and numerical techniques
  • At least 2 years of relevant model risk management and/or quantitative modelling experience. The ideal candidate has experience with IRB models gained at a financial institution
  • Understanding and ideally working knowledge on Internal-Based Rating (IRB) models such as PD, LGD, EAD, Stress testing, IFRS9
  • Knowledge of relevant regulatory requirements for market and credit risk
  • Experience in Stress Testing and IFRS9 modelling (preferred)
  • Experience in developing pricing or risk models using Python, R, or Excel VBA
  • The ability to effectively communicate with a wide range of stakeholders, both written and verbally
  • An interest in working in a fast-paced environment, often balancing multiple high priority deliverables

What you can expect from Morgan Stanley:

We are committed to maintaining the first-class service and high standard of excellence that have defined Morgan Stanley for over 85 years. At our foundation are five core values - putting clients first, doing the right thing, leading with exceptional ideas, committing to diversity and inclusion, and giving back - that guide our more than 80,000 employees in 1,200 offices across 42 countries. At Morgan Stanley, you'll find trusted colleagues, committed mentors and a culture that values diverse perspectives, individual intellect, and cross-collaboration. Our Firm is differentiated by the caliber of our diverse team, while our company culture and commitment to inclusion define our legacy and shape our future, helping to strengthen our business and bring value to clients around the world. Learn more about how we put this commitment to action: morganstanley.com/diversity. We are proud to support our employees and their families at every point along their work-life journey, offering some of the most attractive and comprehensive employee benefits and perks in the industry.

Flexible work statement:

Morgan Stanley is an equal opportunities employer. We work to provide a supportive and inclusive environment where all individuals can maximize their full potential. Our skilled and creative workforce is comprised of individuals drawn from a broad cross section of the global communities in which we operate and who reflect a variety of backgrounds, talents, perspectives, and experiences. Our strong commitment to a culture of inclusion is evident through our constant focus on recruiting, developing, and advancing individuals based on their skills and talents.

Client-provided location(s): London, UK
Job ID: Morgan-549781857516
Employment Type: Other

Perks and Benefits

  • Health and Wellness

    • Health Insurance
    • Dental Insurance
    • Vision Insurance
    • Life Insurance
    • Short-Term Disability
    • Long-Term Disability
    • Fitness Subsidies
    • On-Site Gym
    • Pet Insurance
    • Mental Health Benefits
    • FSA
    • Virtual Fitness Classes
    • HSA
  • Parental Benefits

    • Fertility Benefits
    • Adoption Assistance Program
    • Family Support Resources
    • Return-to-Work Program
    • Birth Parent or Maternity Leave
    • Non-Birth Parent or Paternity Leave
    • Adoption Leave
  • Work Flexibility

    • Hybrid Work Opportunities
  • Office Life and Perks

    • Commuter Benefits Program
    • Company Outings
    • On-Site Cafeteria
    • Holiday Events
  • Vacation and Time Off

    • Paid Vacation
    • Paid Holidays
    • Leave of Absence
    • Volunteer Time Off
    • Personal/Sick Days
  • Financial and Retirement

    • 401(K) With Company Matching
    • Stock Purchase Program
    • Performance Bonus
    • Relocation Assistance
    • Financial Counseling
  • Professional Development

    • Tuition Reimbursement
    • Promote From Within
    • Mentor Program
    • Access to Online Courses
    • Lunch and Learns
    • Work Visa Sponsorship
    • Leadership Training Program
    • Associate or Rotational Training Program
    • Internship Program
  • Diversity and Inclusion

    • Diversity, Equity, and Inclusion Program
    • Employee Resource Groups (ERG)