Manager, Model Risk Governance

FHLBank Chicago•Chicago, IL

3d•$151,025 - $265,525•Hybrid

About The Position

The Model Risk Analyst (Analyst) within the Model Risk Management Group (MRM) is responsible for various tasks supporting model validation and risk governance. The tasks are both technical (e.g., related to data analytics and quantitative modeling) and administrative (e.g., documentation requirements). By completing these tasks, the analyst will enhance both his/her technical skills and understanding of how financial models are used within the bank. Strengthens risk management and governance by ensuring models, AI/ML solutions, and end-user computing (EUC) tools comply with regulatory requirements, internal policies, and governance standards. Improves decision-making through strong governance by establishing robust model and EUC governance frameworks, maintaining model inventory, and promoting high-quality data, controls, and transparency across the model lifecycle. Supports strategic objectives by enhancing governance practices, supporting regulatory readiness, and providing senior management with clear insights into model and emerging risks.

Requirements

Bachelors or master's degree in finance, economics, risk management, or a related field.
Extensive experience (7-10 years) in risk management, regulatory compliance, or related fields, with a focus on model risk governance and compliance.
0-5 years of management experience required
Strong knowledge of regulatory guidelines and industry best practices related to model risk governance and compliance.
Familiarity with model risk management frameworks, model validation, and model development processes.
Experience in developing and implementing policies, procedures, and controls related to model risk governance and compliance.
Strong understanding of regulatory requirements and the ability to interpret and apply them in a practical manner.
Advanced understanding of financial regulatory environment, fixed income products and risk management concepts.
Excellent problem-solving skills, with the ability to assess and mitigate risk effectively.
Excellent communication and interpersonal skills, with the ability to collaborate with cross-functional teams.

Nice To Haves

Relevant professional certifications (e.g., FRM, CFA) are a plus.
Familiarity with regulatory reporting and examination processes related to model risk governance and compliance is a plus.

Responsibilities

Implement and maintain a comprehensive model risk governance framework, including model standards, validation procedures, validation report templates, test scripts, checklists to ensure compliance with regulatory requirements and industry best practices.
Stay up-to-date with regulatory guidelines, Model Risk AB 2013-07 and Supplemental AB 2022-03, industry trends related to model risk governance and compliance, and assess their impact on model risk governance and compliance practices.
Conduct periodic assessments and reviews to identify potential gaps or weaknesses in model risk governance and compliance practices and recommend appropriate remediation actions.
Maintain an up-to-date model inventory.
Engage internal or external resources to review EUCs periodically.
Collaborate with model validation team to perform model annual review and ensure models adhere to established governance standards and regulatory requirements.
Conduct peer reviews for model validation team to ensure validation report adhere to established model governance standards and regulatory requirements.
Conduct periodical GRC model surveys (especially performance monitoring processes) and vendor surveys, and work with Model Validation team to provide model risk assessment.
Participate in regulatory interactions, including examinations, inquiries, and reporting related to model risk governance and compliance matters.
Coordinate with internal audit and compliance teams to support model risk-related audits and examinations, responding to inquiries and providing necessary documentation.
Develop and deliver training programs on model risk governance and compliance for relevant stakeholders, including model owners, risk managers, and senior management.
Prepare comprehensive reports and presentations summarizing model risk governance and compliance activities, findings, and recommendations for senior management and oversight committee (OROC).