Model Risk Audit Associate
About The Position
The Model Risk Audit Associate conducts Third Line of Defense (3LOD) audits of business units and functional areas, evaluating the completeness, sustainability, and effectiveness of internal controls related to models and model risk management. The role participates in model audits from planning and risk assessment through testing, issue identification, workpaper preparation and review, and audit reporting. It communicates audit strategy, scope, results, control gaps, and recommended corrective actions to stakeholders and senior audit management; drafts audit reports; and monitors issue remediation and closure. The position also supports validation of remediation, ongoing risk assessments and continuous monitoring, and the broader Internal Audit audit plan, including ad hoc reviews, special projects, and investigations. SMBC employees work under a hybrid workforce model, with opportunities to work from home and from an SMBC office. Employees must live within a reasonable commuting distance of their office location. The specific hybrid schedule is shared during the interview process, and hybrid work may not be permitted for certain roles.
Requirements
- At least two years of relevant experience in banking, financial services, or consulting.
- Working knowledge of banking and capital markets products, associated risks, and the use of models within financial institutions.
- Understanding of applicable regulatory requirements and supervisory guidance governing model risk management, including SR 26-2, as applicable.
- Understanding of internal audit methodologies and techniques, internal control frameworks, and audit workpaper and documentation standards.
- Excellent written and verbal communication, presentation, and interpersonal skills, including the ability to communicate technical and audit matters clearly to stakeholders at various organizational levels.
- Advanced degree (master’s or Ph.D.) in Finance, Mathematics, Statistics, Economics, Engineering, Computer Science, or another quantitative discipline.
Nice To Haves
- Experience in Second Line of Defense (2LOD) and/or Third Line of Defense (3LOD) roles involving model risk management, model validation, or model audit.
Responsibilities
- Support regular 3LOD audits of covered business units and functional areas in accordance with IAD audit methodology, evaluating controls related to models and model risk management.
- Participate in model audits from inception through completion, including planning, risk assessment, testing, issue identification, workpaper preparation and review, and audit reporting.
- Communicate audit strategy and scope, testing results, identified control gaps, and recommended corrective actions to business stakeholders and senior audit management.
- Draft clear, high-quality, and well-supported audit reports for review by senior audit management and issuance to relevant business stakeholders.
- Facilitate audit issue tracking and remediation monitoring to support timely and sustainable resolution and the issue-closure process.
- Perform or support independent validation of remediation and closure of issues identified by Internal Audit and regulators.
- Participate in quarterly and annual continuous monitoring and risk assessment activities to identify emerging risks, business and regulatory developments, control environment changes, and shifts in business risk profiles.
- Develop and maintain collaborative relationships with audit stakeholders while preserving Internal Audit independence and professional skepticism.
- Provide input, as appropriate, on business or functional-area self-assessments of key risks and controls.
- Support the broader IAD audit plan and assurance responsibilities, including ad hoc reviews, special projects, and investigations.
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What This Job Offers
Job Type
Full-time
Career Level
Entry Level
