Quantitative Model Validation Analyst

U.S. Bank • Minneapolis, MN

4d • $111,095 - $130,700 • Hybrid

About The Position

The Quantitative Model Validation Analyst role is part of the Bank’s Risk Management and Compliance organization, specifically supporting the Model Risk Management (MRM) program. This program provides governance, oversight, and control processes for identifying, measuring, monitoring, and managing model risk across the enterprise. The analyst will provide independent and effective challenge of models used for critical business, financial, and risk management decisions. The role focuses on the independent validation of macroeconomic forecasting models used in regulatory and business planning, including CCAR, CECL, capital planning, and other business-as-usual activities. The incumbent will collaborate with Model Owners and Developers to conduct risk-focused validations, challenging model assumptions, theoretical foundations, estimation techniques, variable selection, forecasting performance, sensitivity analyses, and outcome reasonableness. All validation activities must comply with regulatory guidance and the Bank’s Model Risk Management Policy and Standards. The role involves assessing model risks, limitations, uncertainties, and potential sources of forecast error, providing conclusions on model appropriateness and fitness for use. The position requires strong analytical and quantitative skills, including econometrics, time-series analysis, macroeconomic forecasting, stress testing, and statistical model performance evaluation. Independent testing, benchmarking, back-testing, and sensitivity analysis will be conducted to assess conceptual soundness, ongoing performance, and regulatory compliance. The analyst will document validation procedures, findings, and conclusions in reports and present results to stakeholders, including model owners, developers, governance committees, and executive management. Regular interaction with Risk Management, Finance, Treasury, and Business Lines is expected, as well as interfacing with regulators (OCC and Federal Reserve) and Internal Audit to discuss validation approaches, findings, model risk assessments, and remediation recommendations. Effective communication of complex quantitative concepts to both technical and non-technical audiences is essential.

Requirements

• Bachelor’s degree in a quantitative field, and five or more years of relevant experience OR MA/MS in a quantitative field, and three or more years of related experience OR PhD in a quantitative field, and less than two years of related experience
• Strong analytical and quantitative skills
• Experience with econometric modeling
• Experience with time-series analysis
• Experience with macroeconomic forecasting
• Experience with stress testing methodologies
• Experience with statistical model performance evaluation
• Ability to clearly communicate complex quantitative concepts to both technical and non-technical audiences

Nice To Haves

• Excellent knowledge in economics, finance, statistics, and mathematics
• Proficient in the Python, SAS, and R programming languages
• Experience in macroeconomic forecast model development or validation
• Experience in stress testing models
• Critical thinking, problem solving, and creativity
• Strong written and verbal communication skills (ability to explain complex ideas in simple, non-technical language)
• Ability to establish and effective working relationships with peers, business line managers, and colleagues across the bank
• Highly motivated with the ability to learn and to understand various business lines and their functions within the organization
• Ability to work independently as well as collaboratively within a team environment.
• Strong organizational skills and the ability to work on multiple tasks effectively
• Knowledge of regulatory guidance

Responsibilities

• Provide independent and effective challenge of models used for critical business, financial, and risk management decisions.
• Perform independent validation of macroeconomic forecasting models used in regulatory and business planning processes, including CCAR, CECL, capital planning and other business-as-usual (BAU) activities.
• Work closely with Model Owners and Developers to perform thorough, risk-focused validations.
• Independently challenge model assumptions, theoretical foundations, estimation techniques, variable selection methodologies, forecasting performance, scenario design, sensitivity analyses, and outcome reasonableness.
• Conduct validation activities in compliance with regulatory guidance, and the Bank’s Model Risk Management Policy and Standards.
• Assess model risks, limitations, uncertainties, and potential sources of forecast error.
• Provide independent conclusions regarding model appropriateness and fitness for use.
• Conduct independent testing, benchmarking, back-testing, sensitivity analysis, and other validation procedures to evaluate model conceptual soundness, ongoing performance, and compliance with regulatory expectations.
• Document validation procedures, findings, and conclusions in comprehensive validation reports.
• Present results to model owners, developers, governance committees, and executive management.
• Regularly interact with key stakeholders across Risk Management, Finance, Treasury, and Business Lines.
• Interface with regulators (OCC and Federal Reserve) and Internal Audit to explain validation approaches, findings, model risk assessments, and remediation recommendations.

Benefits

• Healthcare (medical, dental, vision)
• Basic term and optional term life insurance
• Short-term and long-term disability
• Pregnancy disability and parental leave
• 401(k) and employer-funded retirement plan
• Paid vacation (from two to five weeks depending on salary grade and tenure)
• Up to 11 paid holiday opportunities
• Adoption assistance
• Sick and Safe Leave accruals of one hour for every 30 worked, up to 80 hours per calendar year unless otherwise provided by law

What This Job Offers

• Job Type: Full-time
• Career Level: Mid Level