Model Risk Manager - Iselin, NJ

Provident Bank•Iselin, NJ

About The Position

The Model Risk Manager serves as Provident Bank’s independent second-line authority for Model Risk Management (MRM), reporting to the Chief Risk Officer. The role provides effective challenge and oversight of the Bank’s models, quantitative methods, analytical tools, and other model-driven decision-support systems. It maintains and enhances the MRM Framework in alignment with regulatory expectations and industry practices, and oversees the model lifecycle from identification and inventory management through validation, implementation, monitoring, change management, and retirement. The role performs and oversees independent model validations, manages third-party validation providers, challenges model owners and business lines, and reports model risk exposures and emerging concerns to management and governance committees. It also supports oversight of data dependencies affecting model outputs and assesses risks associated with artificial intelligence, machine learning, advanced analytics, and evolving decision-support technologies. The Model Risk Manager chairs the Model Risk Management Committee. The position has no current direct supervisory responsibility, though it oversees third-party staff supporting validations and may supervise staff if validations transition in-house. Work is performed in a normal office environment with usually moderate noise. The role involves prolonged sitting, lifting 5 to 10 pounds, and occasional bending or overhead lifting. Hazards are primarily those present in a normal office setting. The annual base pay range is $142,000–$163,300. The role is incentive eligible based on company, business, and/or individual goal achievement and performance. Pay offered may vary based on skills, experience, job-related knowledge, education, geographic location, internal equity, and other applicable business and organizational needs.

Requirements

5–7 years of professional experience involving quantitative analysis, statistical modeling, model validation, model governance, or model risk management.
At least 3 years of experience within financial services, banking, consulting, regulatory, audit, or risk management environments involving quantitative model oversight.
Financial-industry experience in model risk management or the use of models, with sufficient quantitative and technical experience to perform validations.
Strong knowledge of SR 11-7 and OCC and FDIC supervisory expectations relating to model risk management.
Understanding of statistical modeling, quantitative analytics, machine learning concepts, forecasting methodologies, and risk measurement techniques.
Experience performing or overseeing independent model validations.
Familiarity with CECL, ALM, liquidity, capital planning, stress testing, fraud analytics, and other banking-focused quantitative models.
Demonstrated ability to independently challenge model developers, business-line management, vendors, and third parties.
Knowledge of data governance, data lineage, data-quality management, and control frameworks supporting model risk management.
Excellent written and verbal communication skills, including the ability to present highly technical concepts to executive management, committees, auditors, and regulators.

Nice To Haves

Degree or concentration in a quantitative field such as mathematics, physics, engineering, computer science, or financial engineering.
Experience interacting with senior management, regulators, auditors, or governance committees.
Experience managing third-party validation providers and model-remediation efforts.
Risk-management-related certification or a principles-based certification demonstrating mastery of a relevant framework or methodology.

Responsibilities

Maintain and continuously enhance the Bank’s MRM Framework, including governance policies, standards, procedures, methodologies, and reporting.
Serve as the independent second-line subject matter expert on model risk management across the Company and provide effective challenge of model design, assumptions, limitations, implementation, data quality, performance, and use.
Maintain the enterprise model inventory and model risk classification methodology, ensuring complete and accurate model identification and risk tiering.
Oversee governance of quantitative models used for credit risk, CECL, capital planning, liquidity risk management, asset liability management, stress testing, fraud monitoring, marketing analytics, pricing, forecasting, and other business purposes.
Perform independent model validations and periodic model reviews using regulatory guidance and industry-accepted methodologies.
Manage third-party validation providers, including engagement oversight, quality review, challenge of conclusions, and issue remediation.
Evaluate conceptual soundness, methodology, data integrity, implementation accuracy, process controls, assumptions, limitations, outcomes analysis, benchmarking, sensitivity testing, stress testing, and back-testing.
Assess model findings, limitations, and compensating controls; ensure remediation plans are developed and monitored through completion.
Present validation results and recommendations to management committees, senior management, Audit, and regulators.
Oversee governance throughout the model lifecycle, including development, acquisition, implementation, use, monitoring, change management, redevelopment, decommissioning, and retirement.
Review proposed model changes and determine validation requirements and risk implications.
Monitor model performance and usage trends to identify deterioration, emerging risk, control weaknesses, or changing business conditions that affect reliability.
Oversee governance and risk assessment for vendor-developed models, externally sourced methodologies, and significant analytical tools used in business decisions.
Evaluate vendor model documentation, assumptions, implementation controls, performance-monitoring practices, and independent-review requirements; ensure suitable oversight of significant tools that may not meet the regulatory definition of a model.
Chair the Model Risk Management Committee and develop and present periodic reporting on model inventory status, validation activity, findings, remediation, emerging model risks, and program effectiveness.
Coordinate with regulators, Internal Audit, external auditors, and consultants on model risk management matters.
Monitor regulatory developments and emerging industry practices and recommend enhancements to the Bank’s MRM program.
Assist in developing and executing second-line oversight of data governance, data quality, and data controls supporting models.
Assess completeness, accuracy, lineage, governance, and controls for model inputs and outputs; review data sourcing, transformations, reconciliations, and key assumptions for critical models.
Collaborate with business units, Technology, and governance functions to identify and remediate data risks affecting model reliability and decision-making.
Support enterprise initiatives involving data governance, model data quality, and analytical risk management.
Oversee second-line governance and independent review of artificial intelligence, machine learning, generative AI, predictive analytics, and other advanced analytical solutions used by the Bank.
Assess governance, validation, testing, monitoring, transparency, explainability, data quality, bias assessment, and outcome validation for AI-enabled solutions.
Support enterprise standards for acquisition, deployment, monitoring, and retirement of AI-enabled technologies.
Coordinate with Information Security, Data Governance, Compliance, Legal, Operational Risk, and business-line partners to apply appropriate lifecycle risk practices.

Benefits

Incentive eligibility based on company, business, and/or individual goal achievement and performance.
Paid Time Off (PTO).
Paid holidays.
Medical, Dental, and Vision Plans.
Flexible Spending Accounts (FSA).
Health Savings Accounts (HSA).
401(k) Retirement Plan.
Disability Insurance.
Employee Assistance Program (EAP).
Basic Life Insurance.
Company-sponsored Tuition Disbursement and Loan Repayment programs.
Voluntary Supplemental Life Insurance, Accident, Critical Illness, Hospital Indemnity, and Legal plans.