Quantitative Model Validation Analyst

U.S. Bank•Minneapolis, MN

18h•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 to manage model risk across the enterprise. Analysts in MRM offer independent challenge to models used for critical business, financial, and risk management decisions. This position 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 role involves working with Model Owners and Developers to conduct thorough, risk-focused validations, challenging model assumptions, theoretical foundations, estimation techniques, variable selection, forecasting performance, scenario design, sensitivity analyses, and outcome reasonableness. Activities must comply with regulatory guidance and the Bank’s Model Risk Management Policy and Standards. The analyst will assess model risks, limitations, uncertainties, and potential forecast errors, providing conclusions on model appropriateness and fitness for use. The role 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. Interaction with key stakeholders across Risk Management, Finance, Treasury, and Business Lines is expected, as well as interfacing with regulators (OCC and Federal Reserve) and Internal Audit. Clear 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 conduct independent testing, benchmarking, back-testing, and sensitivity analysis
Ability to document validation procedures, findings, and conclusions in comprehensive validation reports
Ability to present results to stakeholders
Ability to regularly interact with key stakeholders across Risk Management, Finance, Treasury, and Business Lines
Ability to interface with regulators (OCC and Federal Reserve) and Internal Audit
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 maintain 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 (CCAR, CECL, capital planning, BAU).
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.
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.
Evaluate model conceptual soundness, ongoing performance, and compliance with regulatory expectations.
Document validation procedures, findings, and conclusions in comprehensive validation reports.
Present validation 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.
Clearly communicate complex quantitative concepts to both technical and non-technical audiences.

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
Incentive and recognition programs
Equity stock purchase
Pension