Manager, Model Validation Unit
Riverwoods , Illinois
September 11, 2017
Discover Financial Services (DFS) is a direct banking and payment services company with one of the most recognized brands in the U.S. The company has an outstanding opportunity in its highly visible Corporate Risk Management (CRM) department for a model risk manager with experience in model risk management practices. The Model Risk Management group has enterprise-wide oversight responsibility for all aspects of model risk including model governance, model validation and model performance monitoring. This group validates and approves all qualifying models used across different areas of the enterprise. The scope of the team includes model risk ratings, model inventory management, model disclosures, model usage tracking and controls.

This highly visible role in the Model Risk Management team will manage the execution of model validation activities for financial models such as PPNR models, Deposit balance forecasting models, regulatory capital model, and market & liquidity risk models according to the governance framework and policies and procedures, and provide recommendations for continuous model enhancements across the enterprise. The roles will work closely with DFS Financial Modeling team and Treasury team for independent validation projects and for other ongoing monitoring/effective challenge processes.


* Reports to Senior Manager in Model Risk Management.
* Interfaces primarily with business partners in Finance (Financial Modeling, Corporate Planning, Treasury, and LOB Finance).
* Ability to coordinate efforts across multiple business units and with senior management.
* Perform independent model validations and effective challenge for models such as - PPNR forecasting/stress testing, deposit balance forecasting, regulatory capital, balance sheet/ALM, liquidity risk, valuation, economic capital, interest rate, etc.
* Maintain and follow independent model validation standards and procedures.
* Interpret model validation test results and establish required action plans with model owners/developers and provide value-added recommendations to model owners/developers.
* Proactively identify emerging model risk issues impacting the Company and communicate to model developers, senior management and the DFS Model Governance Committee.
* Maintain high quality standardized model validation documentation, and keep up to date with regulations, regulatory exam requirements and regulatory guidance.
* Interact with external regulators and internal auditors to demonstrate the operational soundness and effectiveness of the model validation process.
* Coach and provide thought leadership to foster strong team and individual staff development.
* Maintain current/develop new analytical reports and presentations for senior management, executive committees and regulatory exams.
* Manage the work flow of US/off-shore model validators.
* Masters or equivalent advanced degree in engineering, econometrics, statistics, mathematical finance, operations research, or other quantitative field.
* Minimum of 4 years of experience in building, testing, implementing and validating complex and sophisticated statistical/financial models.
* In-depth knowledge and understanding of statistics, finance, economics, and probability theories, and experience working with time series, regression, econometric modeling, etc.
* Proficiency in statistical and financial software such as SAS (or equivalent), SQL, Excel (and VBA), etc.
* Experience writing high quality standardized reports, white papers, and preparing effective presentations.
* Strong interpersonal and written and oral communication skills, and a proven ability to work in a collaborative and team environment.
* Ability to interact with all levels of the organization as well as internal and external customers, and to communicate technical information to any audience.
* Additional plus points for the following qualifications: experience with Treasury/QRM, knowledge of regulations requirements and expectations (Market & Liquidity Risk Management, Basel, Dodd-Frank, Federal Reserve and OCC guidance on model validation and stress testing, etc.), experience interacting with regulators, FRM certification.
* Lean, Six Sigma and/or demonstrated process improvement expertise a plus.

Promote a risk-aware culture; ensure efficient and effective risk and compliance management practices by adhering to required standards and processes.

#LI-MK1 We are an Equal Opportunity Employer and do not discriminate against any employee or applicant for employment because of race, color, sex, age, national origin, religion, sexual orientation, gender identity, status as a veteran, and basis of disability or any other federal, state or local protected class.

A little about us:
Discover is one of the most recognized brands in U.S. financial services. We’re a direct banking and payment services company built on a legacy of innovation and customer service.

Know someone who would be interested in this job? Share it with your network.