Model Risk Audit, AVP
State Street · Boston, Massachusetts, United States
Who We Are Looking For
We are seeking a quantitative risk professional to join Corporate Audit as Model Risk Audit, Assistant Vice President. The role will lead and execute audit engagements focused on models, quantitative tools, analytics, and artificial intelligence used across State Street.
The successful candidate will bring strong hands-on experience developing, validating, implementing, or reviewing models within a professional financial-services environment. Candidates coming from Model Risk Management, Model Validation, Model Development, Quantitative Risk, or Model Risk Audit will be considered based on their technical experience, leadership potential, and ability to develop audit-management skills.
Under the direction of senior audit management, the Assistant Vice President will execute model-risk audits across planning, risk assessment, testing, stakeholder discussions, issue development, and reporting. The individual will also monitor emerging model-risk themes, help develop the quantitative capabilities of audit colleagues, and support broader departmental initiatives.
Why This Role Is Important to Us
Corporate Audit provides independent assurance over the governance, risk management, and control processes supporting State Street’s global businesses.
Models and quantitative analytics influence critical decisions across financial risk management, financial crime prevention, Treasury, Markets, and Investment Management. As the use of advanced analytics and artificial intelligence expands, independent assessment of model design, implementation, validation, monitoring, and governance becomes increasingly important.
In this role, you will combine quantitative model expertise with audit and risk-management skills to evaluate whether significant models are appropriately designed, implemented, validated, monitored, and governed.
What you will be responsible for
As a Model Risk Audit Manager, Assistant Vice President you will:
- Lead or support model-risk audits covering two or more areas such as credit risk, market risk, capital, liquidity, counterparty risk, financial crime, pricing, Treasury, Investment Management, Markets.
- Plan and execute audits according to the Corporate Audit’s risk-based audit methodology and internal standards, industry practices and regulatory guidance (e.g. SR 11-7/26-2 on Model Risk Management, ECB guide to internal models, SR 15-18, etc.)
- Assess the design and effectiveness of controls across the model lifecycle, including development, validation, implementation, change management, monitoring, use, and governance.
- Review and assess model documentation and implementation details, model validation and ongoing monitoring results to assess the effectiveness of the model risk management control design and execution both on an individual model basis and in aggregate.
- Draft clear audit workpapers, findings, memoranda, and reports that explain the risks, root causes, business impact, and recommended actions.
- Communicate audit progress, conclusions, findings, and remediation expectations to audit management and key stakeholders.
- Identify recurring or emerging model-risk themes through audit results, management-identified issues, validation findings, and ongoing risk monitoring.
- Develop an understanding of State Street’s products, services, data, IT application / data infrastructure, risk-management processes, and regulatory obligations.
- Build effective relationships across Model Risk Management, Model Validation, business teams, technology teams, and the three lines of defense.
- Support knowledge sharing and cross-training to strengthen quantitative and model-risk capabilities across Corporate Audit.
- Coordinate and facilitate global operation of the model risk audit team to meet team and individual priorities
What We Value
- Strong quantitative judgment and the ability to critically evaluate complex model methodologies, assumptions, data, code, and results.
- Intellectual curiosity and the ability to understand unfamiliar models, products, and risks.
- Leadership potential and the willingness to develop end-to-end audit-management capabilities.
- The ability to translate complex quantitative concepts into clear risk and business implications.
- Strong written and verbal communication skills, including the ability to discuss technical conclusions with quantitative and nontechnical stakeholders.
- Sound judgment and the confidence to provide constructive challenge.
- The ability to manage multiple priorities, work independently, and deliver high-quality work in a fast-paced global environment.
- A collaborative approach and the ability to build effective relationships across functions and lines of defense.
Qualifications
- Master’s degree or higher in quantitative finance, statistics, mathematics, economics, financial engineering, computer science, or a related quantitative discipline.
- 5+ year experience developing, validating, implementing, or independently reviewing quantitative models within a financial institution, financial-services organization, or financial-risk consulting environment.
- Demonstrated hands-on professional model experience, including substantive responsibility for assessing model methodology, assumptions, data, implementation, code, performance, limitations, monitoring, or validation conclusions.
- Experience performing quantitative model assessment techniques such as back testing, benchmarking, sensitivity analysis, stress testing, scenario analysis, challenger analysis, and model-performance monitoring, as appropriate to the models reviewed.
- Demonstrated ability to critically evaluate and provide independent challenge of model methodologies, assumptions, data, implementation, performance, limitations, and intended use.
- Strong understanding of the model lifecycle, including development, validation, implementation, change management, ongoing monitoring, issue remediation, use, and governance.
- Working proficiency in Python, R, or a comparable statistical programming language, including the ability to review, run, modify, and analyze model code, data, and outputs.
- Ability to assess model risk and the design and effectiveness of controls supporting model development, validation, implementation, monitoring, and governance.
- Strong quantitative judgment and analytical skills, with the ability to quickly understand unfamiliar models, methodologies, products, and risks.
- Ability to translate complex quantitative concepts and model findings into clear risk, control, and business implications for technical and nontechnical stakeholders.
- Strong written and verbal communication, organizational, problem-solving, and project-management skills.
- Leadership potential and the ability to develop the skills required to manage audit engagements through planning, risk assessment, testing, issue development, stakeholder discussions, and reporting.
Preferred Experience
- Experience developing, validating, or reviewing models used in areas such as credit risk, market risk, capital, liquidity, counterparty risk, pricing, Treasury, Investment Management, or financial crime.
- Experience leading or supporting independent model validations, model-risk assessments, regulatory reviews, or quantitative audit engagements.
- Knowledge of model-risk regulations and guidance, including SR 11-7, SR 15-18, SR 26-2, ECB guidance, or comparable regulatory expectations.
- Experience with financial products relevant to State Street, including custody, securities finance, derivatives, foreign exchange, credit facilities, Treasury, Markets, or Investment Management.
- Experience with artificial intelligence, machine learning, advanced analytics, or financial-crime models.
- CFA, FRM, or a comparable professional designation preferred.
Are You the Right Candidate?
We recognize that candidates may enter this role from different quantitative and risk disciplines. Previous Internal A