Senior Manager, Deterministic Quantitative Methods - Independent Review & Assurance

Location: Bengaluru

Job Summary

Deterministic Quantitative Methods (DQM) Independent Review & Assurance (DQM IRA) is a newly established team within the Model Risk Policy & Governance (MRPG) unit, which is part of the broader Model Risk Management organization. This team is tasked with designing, implementing and operating strategies and processes to provide Second Line of Defence (2

LoD) independent review and assurance for DQMs. The goal is to ensure that the DQMs are used appropriately and managed in compliance with the Group's DQM Standards and the regulatory (i.e., PRA) expectations (Supervisory Statement SS 1/23). The team is also responsible for building a risk-based approach to help First Line of Defense (1

LoD) stakeholders adopt the appropriate processes for managing the risks associated with the usage of DQMs within the Businesses / Functions.
In this role, you will be primarily responsible for the independent review of DQMs and their associated controls across our organization, with supplementary responsibilities to support and facilitate the design, implementation and embedding of DQM governance and oversight requirements.

Key Responsibilities

Processes

Senior Manager, DQM IRA will be responsible for undertaking detailed independent reviews of DQMs to ensure they are fit for purpose and operating as expected:
Review the DQM risk assessment outcomes including the tiering and the associated rationale for the 'Materiality' and 'Complexity' ratings assigned.
Review control assessments for medium and high-risk DQMs, validate compliance evidence, and assess remediation plans for control gaps.
Collaborate with 1

LoD DQM Owners to determine if any aspects of the Model Life Cycle should apply to high-risk DQMs and agree on next steps and timelines.
Verify the documentation and implementation process for high-risk DQMs, and its adherence to the control and risk managements requirements set out in the Standards.
Test high-risk DQM's numerical implementations, assessing the inputs, reporting outputs, suitability for the use of its intended purpose, relevance and completeness of data.
Verify the validity and effectiveness of Alternative Control Processes ('ACP') which either fully or partly address the DQM control and risk management requirements established in the Group DQM Standards.
Provide written validation reports detailing the results of the review including documentation of issues identified and reviewing the appropriateness of 1

LoD remediation plans to resolve.
Facilitate the timely closure of DQM issues through active tracking of issue resolution progress, and detailed review of issue closure artefacts to ensure the underlying deficiencies are sufficiently addressed and required processes are embedded for ongoing effectiveness.
Determine the appropriate compensating controls to be put in place for observed issues with DQMs and establish necessary oversight on them.
Coordinate the approval activities for DQMs with the DQM Owner by contributing to the approval papers and rationalising the review outcomes in approval discussions.
Assist with the DQM change management processes by supporting the determination of a change classification as 'major' or 'minor'.

Strategy

Senior Manager, DQM IRA will support the design and implementation of 2

LoD activities established in the Group DQM Standards:
Contribute to the development of a framework for independent verification of the DQMs group wide (e.g., non-model calculators and non-model estimators), to ensure their appropriate use and that they are functioning as intended.
Help Policy Owner take account of regulatory change, internal and external audit feedback and perform thematic reviews where required to feed into revising the Group DQM Standards.
Communicate effectively with stakeholders at all levels of the organization to ensure alignment and understanding of phased implementation plan for DQMs.

Business

Senior Manager, DQM IRA will support the integration of a risk-based approach and help the stakeholders adopt the appropriate processes for managing the risks associated with the usage of DQMs within the Businesses / Functions:
Provide guidance and oversight to the adoption of Group DQM Standards within the First Line Defence (1

LoD) functions and monitor ongoing compliance.
Provide guidance and training related to DQM Lifecycle, to further educate the DQM Owners, Users and Process Owners in managing their DQM related risks within acceptable levels.
Assist in establishing specific risk management processes for DQMs in Credit, Traded, and Non-Financial Risk model families/areas by updating existing Model Family Standards or creating standalone DQM Addenda.

Risk Management

Senior Manager, DQM IRA will be responsible for supporting the Management Team for Model Risk Management to effectively cascade the appropriate risk management efforts for DQMs:
Help with the embedding of the DQM related risks as an extension of existing Risk Taxonomy & Control Library for Model Risk.
Support the 1

LoD in setting and…