SVP, Independent Model Review, Traded Risk

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Job Description

Our purpose – Opening up a world of opportunity – explains why we exist. Here at HSBC, we use our unique expertise, capabilities, breadth and perspectives to open new kinds of opportunity for our more than 40 million customers. We’re bringing together the people, ideas and capital that nurture progress and growth, helping to create a better world – for our customers, our people, our investors, our communities and the planet we all share.

Model Risk Management (MRM) at HSBC is structured as a global function, headed up by the Chief Model Risk Officer (CMRO). MRM are the second line of defense (2

LoD) for Model Risk and the CMRO is the global Model Risk Steward for the group and is also accountable for the global operation of the MRM function. MRM teams are based in each region, to ensure local subject matter expertise and to guide, review, and challenge. MRM activity is managed on a global basis as many models are used in multiple locations.

This enables MRM to operate consistently and efficiently globally, and to take account of additional local regulatory requirements.

MRM is comprised of four key activities:

• Model Risk Governance - Setting the firm's model risk policies and standards, ensuring that model risk is managed within the approved tolerance levels, providing second line assurance on the implementation of policy, and monitoring regulatory developments impacting model risk.
• Model Risk Stewardship - Facilitating responsible development, understanding and use of models and analytics, as well as providing subject matter expertise, advice, guidance, and effective challenge across all entities, regions, global businesses, and functions.
• Independent Model Validation
  - Independently reviewing and (re) validating models, providing an objective, unbiased and critical opinion on the suitability and soundness of models for their intended use and the accuracy, relevance and completeness of outputs used to inform business decisions.
• Infrastructure - provides specialist technical expertise and are responsible for delivery of infrastructure and reporting capability used across all geographies, business, and functions to support the effective management of model risk.

• Manage model risk in traded risk from end to end from US perspective.
• Represent MRM in US regulatory engagements
• Undertake model validation activities as dictated by the Global Model Risk Policy including the assessment of; model inputs, calculations, reporting outputs, conceptual soundness of the underlying theory and the suitability of the use for its intended purpose, relevance and completeness of data, qualitative information and judgements, documentation, and implementation of the model.
• Exercise quality assurance of global validations and model reviews to ensure they meet US standards and regional regulatory requirements
• Drive US validation projects such as FRTB-SA, SA-CVA, CCAR and model enhancements to Basel 2.5, through close collaboration with the global traded risk validation teams
• Provide written reports detailing the results of validations highlighting issues identified during the validation.
• Validate remediation activities completed by the ILOD to ensure appropriate resolution of identified issues.
• Work with relevant stakeholders to embed new Global Model Risk Policies and Procedures.
• Provide model users, model owners, senior management, audit, and regulators (across 1
  
  LOD, 2
  
  LOD, 3
  
  LOD) with confidence that the models and tools developed, maintained, and used within the Group are compliant with internal and regulatory expectations and fit for the intended purpose.
• Participate at Governance Forums as required.
• Support the interaction with Group Internal Audit on model related audits, MSIIs and audit issues and ensure oversight on…