Model Validation Specialist

SMBC; North Carolina; Hybrid; USD 90,000 - 130,000; Full time

Job summary

SMBC Group is seeking a Model Validation Associate to join the Model Validation Group in NYB. You will perform independent validation of credit risk and capital stress testing models, documenting development and assessing suitability for business purposes.

You will help develop validation methodology, support audits, design back-testing, and communicate findings to management. The role requires advanced analytics, collaboration across teams, and compliance with SR11-7, CECL, CCAR and related

Qualifications

• Master's degree in Statistics, Mathematics, Engineering, Computer Science or related field.
• Preferred experience in model validation and model development.
• Knowledge of loss reserve, CECL, capital and stress testing models.
• Knowledge of SR11-7, CECL, CCAR, and other regulatory requirements.
• Strong analytical and communication skills.

Responsibilities

• Conduct model validation across SMBC businesses and group companies.
• Develop model validation methodology to assess conceptual soundness and robustness.
• Identify deficiencies and communicate findings with recommendations to stakeholders.
• Conduct reviews on model annual assessment, changes, and monitoring results.
• Assist audits and examinations for credit risk and stress testing models.

Skills

Model validation

Model development

Statistical analysis

Regulatory knowledge

Strong communication

Education

Master's degree in Statistics, Mathematics, Engineering, Computer Science or related fields

Job description

SMBC Group is a top-tier global financial group. Headquartered in Tokyo and with a 400-year history, SMBC Group offers a diverse range of financial services, including banking, leasing, securities, credit cards, and consumer finance. The Group has more than 130 offices and 80,000 employees worldwide in nearly 40 countries. Sumitomo Mitsui Financial Group, Inc. (SMFG) is the holding company of SMBC Group, which is one of the three largest banking groups in Japan. SMFG's shares trade on the Tokyo, Nagoya, and New York (NYSE: SMFG) stock exchanges.

In the Americas, SMBC Group has a presence in the US, Canada, Mexico, Brazil, Chile, Colombia, and Peru. Backed by the capital strength of SMBC Group and the value of its relationships in Asia, the Group offers a range of commercial and investment banking services to its corporate, institutional, and municipal clients. It connects a diverse client base to local markets and the organization's extensive global network. The Group's operating companies in the Americas include Sumitomo Mitsui Banking Corp. (SMBC), SMBC Nikko Securities America, Inc., SMBC Capital Markets, Inc., SMBC MANUBANK, JRI America, Inc., SMBC Leasing and Finance, Inc., Banco Sumitomo Mitsui Brasileiro S.A., and Sumitomo Mitsui Finance and Leasing Co., Ltd.

Role Description

Reporting to the Manager, Model Validation Group, the Model Validation Associate plays an integral role in the implementation of the Model Risk Management framework for NYB and its subsidiaries. The role involves performing independent validation of credit risk and capital stress testing models, with the objective of strengthening model risk governance and enhancing overall model quality.

The Associate is responsible for documenting model development in accordance with regulatory expectations and internal standards, and for assessing the suitability of models for their intended business purpose. The role also includes supporting the development and review of model-related policies and procedures, conducting audits of adherence to established frameworks, and designing and executing back-testing methodologies to evaluate model performance and ensure results are reasonable, robust, and reliable.

Role Objectives

• Conducts model validation across SMBC businesses and group companies for their intended use and scope, commensurate with the complexity and materiality of the models.
• Develops model validation methodology to assess models to confirm the conceptual soundness of model theory, quality of model implementation, and robustness of model ongoing monitoring.
• Identify model deficiencies through validations, communicate the issue with model owners and senior management, and provide feasible and adequate recommendations
• Conduct reviews on model annual assessment, model changes, and ongoing monitoring results
• Develop and maintain documentation templates, testing packages and automation tools/scripts to standardize validation processes
• Support audits and examinations for credit risk and stress testing models
• Communicates findings from validation work to management and stakeholders, including recommendations as appropriate.
• Ensure business continuity under all conditions, sometimes adverse, with strict adherence to established guidelines and deadlines.

Qualifications and Skills

• Minimum master's or equivalent degree in Statistics, Mathematics, Engineering, Computer Science or related fields
• Preferred experience in model validation and model development; and working with large and complex data sets.
• knowledge in loss reserve, CECL, capital and stress testing models
• knowledge of SR11-7, CECL, CCAR, and other regulatory requirements.
• Strong analytical skills, both quantitative and qualitative.
• Strong written and verbal communication skills, with the ability to present complex information clearly and concisely.
• Ability to build and maintain effective working relationships with stakeholders at all levels. Demonstrated ability to work collaboratively in a team environment.
• Recommended years of experience: 0-5

SMBC's employees participate in a Hybrid workforce model that provides employees with an opportunity to work from home, as well as, from an SMBC office. SMBC requires that employees live within a reasonable commuting distance of their office location. Prospective candidates will learn more about their specific hybrid work schedule during their interview process. Hybrid work may not be permitted for certain roles, including, for example, certain FINRA-registered roles for which in-office attendance for the entire workweek is required.

SMBC provides reasonable accommodations during candidacy for applicants with disabilities consistent with applicable federal, state, and local law. If you need a reasonable accommodation during the application process, please let us know at [e-mail].

EOE, including Disability/veterans