Credit Risk Modeling & Database Manager - Vice President

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Job Level: Vice President

Job Function:
Governance & Assurance

Location:

New York, NY, US, 10017

Employment Type:

Full Time

Requisition

SMBC Group is a top-tier global financial group. Headquartered in Tokyo and with a 400-year history, SMBC Group offers a diverse range of financial services, including banking, leasing, securities, credit cards, and consumer finance. The Group has more than 130 offices and 80,000 employees worldwide in nearly 40 countries. Sumitomo Mitsui Financial Group, Inc. (SMFG) is the holding company of SMBC Group, which is one of the three largest banking groups in Japan.

SMFG’s shares trade on the Tokyo, Nagoya, and New York (NYSE: SMFG) stock exchanges.

In the Americas, SMBC Group has a presence in the US, Canada, Mexico, Brazil, Chile, Colombia, and Peru. Backed by the capital strength of SMBC Group and the value of its relationships in Asia, the Group offers a range of commercial and investment banking services to its corporate, institutional, and municipal clients. It connects a diverse client base to local markets and the organization’s extensive global network.

The Group’s operating companies in the Americas include Sumitomo Mitsui Banking Corp. (SMBC), SMBC Nikko Securities America, Inc., SMBC Capital Markets, Inc., SMBC MANUBANK, JRI America, Inc., SMBC Leasing and Finance, Inc., Banco Sumitomo Mitsui Brasileiro S.A., and Sumitomo Mitsui Finance and Leasing Co., Ltd.

SMFL is seeking a Credit Risk Modeling & Database Manager. Credit risk models play a crucial role in credit decisioning by helping financial institutions evaluate the creditworthiness of borrowers. These models quantify the potential risks associated with lending, enabling informed decisions and mitigating potential losses. They are essential for assessing the probability of default, estimating potential losses in the event of default, and determining appropriate interest rates.

Credit risk models can be based on financial statement analysis, default probability, or machine learning techniques. They are used to determine the level of credit risk associated with extending credit to a borrower, ensuring that lenders make informed decisions and manage their credit risk exposures effectively.

The process of credit risk modeling involves data collection, preprocessing, modeling techniques, model validation, and compliance with regulatory requirements. It is a structured approach that ensures the models are robust, transparent, and high performing, supporting better decision-making and compliance with evolving standards.

SMFL utilize two types of models: the Quick Decision Model (Scorecard) and G
- Grade model which is based on a Probability of Default Model (Moody’s’ Risk Calc) in determining the creditworthiness of borrowers. Credit Risk Modeling Analyst role is to monitor, validate and maintain credit risk models to predict default probability and potential losses and to be in compliance with SMBC Model Risk Governance Policy and to be in compliance with Regulatory Guidance SR 11-7.

• Monitoring and managing SMFL credit models and adhere to the Model Risk Management Policy of SMBC and SR 11-7 Fed Guidance
• Analyzing complex data sets to identify patterns and trends
  - Development data vs Actual data
• Presenting findings to stakeholders and making recommendations based on the data
• Monitoring and validating model performance and updating models as needed and preparing Model Monitoring reports in collaboration with SMFL HQ
• Staying current with economic conditions and regulatory changes that may impact risk models
• Collaborating with other departments, such as Finance and Operations, to understand the company’s risk exposure
• Documenting all processes and methodologies used in risk modeling for transparency and future reference
• Providing training and guidance to other team members on risk modeling techniques and strategies
• Ensuring compliance with all industry regulations and standards for risk modeling
• Monitor the gradings process such as internal Risk rating /JP and US Reg classification ratings, update applicable scorecards, monitor limits, oversee…