Model Risk (Rates) (Risk Management) : Job Level - Vice President

474 MS Services Group, Inc.; New York (NY); On-site; USD 120,000 - 210,000; Full time

Job summary

Morgan Stanley is seeking a qualified professional for Model Risk Management to validate complex pricing models across Rates, FX, and Commodities. You will lead independent testing, ensure adherence to standards, and communicate risk insights to governance bodies.

The role requires a strong quantitative background, leadership across a global team, and the ability to collaborate with 1LOD/2LOD stakeholders in a fast-paced environment.

Qualifications

• Masters degree or PhD in quantitative discipline or Finance, with a strong foundation in numerical methods, probability theory, stochastic calculus, and the practical application of quantitative models in finance.
• Strong internal drive to critically challenge, improve, and enhance models using a rigorous, quantitative, and practical mindset.
• Risk-oriented mindset including effective risk prioritization, critical questioning, and ability to speak up.
• Clear analytical and critical thinking, proactive, collaborative approach to problem solving.
• Strong interpersonal and communication skills to explain complex concepts to stakeholders.
• Comfort leading meetings and engaging with senior leaders in the Firm.
• Ability to work in a dynamic, high-pressure environment and manage multiple deliverables.
• Experience managing and leading a global team.

Responsibilities

• Understand the use and effectiveness of models and tools within the context of relevant Firm businesses and processes.
• Perform independent model and tool validation of complex pricing models used by Morgan Stanley's Fixed Income businesses, particularly Rates, FX and Commodities Trading.
• Evaluate whether model testing and documentation meet firmwide standards and policy requirements.
• Assess conceptual soundness and fitness for purpose of models and tools, identifying assumptions and limitations.
• Conduct independent quantitative testing and verify ongoing monitoring frameworks are adequate.
• Identify and upscale model risk themes, engaging with 1LOD and 2LOD stakeholders to develop solutions.
• Collaborate with developers, desk strategists, Market Risk, and Valuation Control to ensure high standards of quality and governance.
• Produce high quality model and tool review reports for senior management and governance forums.
• Perform ad hoc analyses of model behavior, performance, and risk characteristics.
• Manage book of work, prioritization, and drive efficiency and value-addition for stakeholders.
• Identify, quantify, and report on model risk issues including emerging risks and escalation.

Skills

Masters degree or PhD in quantitative

Strong quantitative foundation

Risk management mindset

Leadership and team management

Excellent communication skills

Ability to engage with senior leaders

Analytical and critical thinking

Global team experience

Education

Masters degree or PhD in quantitative discipline or Finance

Job description

Background on the Position

This role will reside within Firm Risk Management's Model Risk Management team, which has global responsibility for the independent control, review, and validation of models used across the Firm. In addition to traditional quantitative methodologies, MRM also reviews models based on artificial intelligence and machine learning, including Generative AI solutions. This role is responsible for the validation of Rates, FX and Commodities derivatives pricing models and tools. This position requires strong risk management mindset, proven subject matter expertise in model development and validation, and excellent technical, leadership, and organizational skills. MRM professionals are based in major financial centers worldwide, including New York, London, Budapest, Frankfurt, Mumbai, and Tokyo, and work closely with business units, capital and risk analytics teams, risk managers, and financial controllers. The New York team collaborates closely with colleagues across the global Model Risk Management organization on model related issues spanning all asset classes.

Primary Responsibilities

• Understand the use and effectiveness of models and tools within the context of relevant Firm businesses and processes.


• Perform independent model and tool validation of complex, state of the art pricing models used by Morgan Stanley's Fixed Income businesses - particularly within Rates, FX and Commodities Trading - for daily valuation and risk management.


• Evaluate whether model and tool documentation meet established firmwide standards and policy requirements, and whether model testing is sufficiently robust to assess model performance, limitations, and risks.


• Assess conceptual soundness and fitness for purpose of models and tools, ensuring that key assumptions and limitations are clearly identified, well understood, and appropriately controlled.


• Conduct independent quantitative testing and verify that ongoing model performance monitoring frameworks are adequate and consistently applied.


• Proactively identify, assess, and upscale thematic and idiosyncratic model and tool risk themes. Engage with 1LOD and 2LOD stakeholders to develop effective solutions to manage model and tool risks including evolving the model risk management practices such as performance monitoring and change management - Communicate model and tool review conclusions to relevant stakeholders and work with relevant 1LOD and 2LOD functions to develop appropriate remedial actions to effectively resolve identified model and tool issues. Track progress against issue remediation actions and take appropriate review actions to resolve.


• Collaborate closely with a broad range of stakeholders - including developers, desk strategists, Market Risk, and Valuation Control - to ensure models and tools meet high standards of quality, governance, and implementation while supporting evolving business needs.


• Produce high quality model and tool review reports consistent with MRM standards and suitable for senior management and governance forums.


• Perform ad hoc and on demand analyses of model behavior, performance, and risk characteristics as required.


• Manage book of work including distribution of work among team members, prioritization of focus areas, and challenging the status quo to improve efficiency, effectiveness, and value-addition to stakeholders and the Firm.


• Identify, quantify, and report on model risk issues including emerging and horizon risks in the context of business, Firm, market environment and changes. Provide timely notification, reporting, and escalation of model risk issues.

Skills Required

• Masters degree or PhD in quantitative discipline or Finance, with a strong foundation in numerical methods, probability theory, stochastic calculus, and the practical application of quantitative models in finance.


• A genuine and broad interest in financial markets, combined with a strong internal drive to critically challenge, improve, and enhance models using a rigorous, quantitative, and practical mindset.


• Risk-oriented mindset including effective risk prioritization, critical and analytical questioning, and ability and willingness to speak up.


• Clear analytical and critical thinking, curious mindset, sound business judgment, resourcefulness and a proactive, collaborative approach to problem solving.


• Strong interpersonal and communication skills, with the ability to clearly articulate complex quantitative concepts to both technical and non-technical stakeholders, and ability to influence and effect change.


• Must be comfortable leading meetings and engaging with senior leaders in the Firm.


• Ability to be nimble, adaptive, and agile to work in a dynamic, fast-paced, high-pressure environment, managing multiple high-priority deliverables.


• Experience managing and leading a global team.

WHAT YOU CAN EXPECT FROM MORGAN STANLEY

At Morgan Stanley, we raise, manage and allocate capital for our clients – helping them reach their goals. We do it in a way that’s differentiated – and we’ve done that for 90 years. Our values - putting clients first, doing the right thing, leading with exceptional ideas, committing to diversity and inclusion, and giving back - aren’t just beliefs, they guide the decisions we make every day to do what's best for our clients, communities and more than 80,000 employees in 1,200 offices across 42 countries. At Morgan Stanley, you’ll find an opportunity to work alongside the best and the brightest, in an environment where you are supported and empowered. Our teams are relentless collaborators and creative thinkers, fueled by their diverse backgrounds and experiences. 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. There’s also ample opportunity to move about the business for those who show passion and grit in their work. To learn more about our offices across the globe, please copy and paste https://www.morganstanley.com/about-us/global-offices into your browser. Expected base pay rates for the role will be between $120,000 and $210,000 year at the commencement of employment. However, base pay if hired will be determined on an individualized basis and is only part of the total compensation package, which, depending on the position, may also include commission earnings, incentive compensation, discretionary bonuses, other short and long-term incentive packages, and other Morgan Stanley sponsored benefit programs. Morgan Stanley is an equal opportunity employer committed to building and maintaining a workforce that is diverse in experience and background. Our recruiting efforts reflect our strong commitment to a culture of inclusion, where individuals are hired, developed, and advanced based on their skills and talents. Our workforce reflects a broad cross-section of the global communities in which we operate, bringing a variety of backgrounds, talents, perspectives, and experiences. For more information, please visit: https://www.morganstanley.com/people-opportunities/eeo. At Morgan Stanley, we advise, originate, trade, manage and distribute capital for people, governments and institutions, always with a standard of excellence and guided by our core values. Morgan Stanley is dedicated to providing first-class service to our clients, in a way that reflects our commitment to creating a more sustainable future and fostering stronger communities around the world. In each line of business, we strive to demonstrate our belief in the power of transformative thinking, innovative strategies and leading-edge solutions—and in the ability of capital to work for the benefit of all society.

What We Do

At Morgan Stanley, we advise, originate, trade, manage and distribute capital for people, governments and institutions, always with a standard of excellence and guided by our core values. Morgan Stanley is dedicated to providing first-class service to our clients, in a way that reflects our commitment to creating a more sustainable future and fostering stronger communities around the world. In each line of business, we strive to demonstrate our belief in the power of transformative thinking, innovative strategies and leading-edge solutions—and in the ability of capital to work for the benefit of all society.