What are the responsibilities and job description for the Model Risk (Risk Management) : Job Level - Associate position at Morgan Stanley?
Model Risk Management - Associate, Commodities Pricing Models and Tools Validation
Morgan Stanley
Morgan Stanley is a leading global financial services firm providing a wide range of investment banking, securities, investment management and wealth management services. The Firm's employees serve clients worldwide including corporations, governments and individuals from more than 1,200 offices in 43 countries.
The Talent And Passion Of Our People Is Critical To Our Continued Success As a Firm. Together, We Share Four Core Values Rooted In Integrity, Excellence And Strong Team Ethic
Putting Clients First
Doing the Right Thing
Leading with Exceptional Ideas
Giving Back
Committing to Diversity and Inclusion
Morgan Stanley is committed to helping its employees build meaningful careers and we strive to be a place for people to learn, achieve and grow.
Firm Risk Management
Firm Risk Management (FRM) enables Morgan Stanley to achieve its business goals by partnering with business units across the Firm to realize efficient risk-adjusted returns, acting as a strategic advisor to the Board and protecting the Firm from exposure to losses as a result of credit, market, liquidity, operational, model and other risks.
You will collaborate with colleagues across FRM and the Firm to protect the Firm's capital base and franchise, advise businesses and clients on risk mitigating strategies, develop tools and methodologies to analyze and monitor risk, contribute to key regulatory initiatives and report on risk exposures and metrics to enable informed and strategic decision-making. Through thoughtful analysis and clear communication, we are best able to bring our ideas to the table and improve the Firm.
Firm Risk Management values diversity and is committed to providing a supportive and inclusive workplace for all employees.
Firm Risk Management's Unique Franchise Promotes
Flat, flexible and integrated global organization
Collaboration and teamwork
Credible, independent decision-making
Organizational influence
Creative and practical solutions
Meritocratic and diverse culture
Background On The Position
This role will reside within Firm Risk Management's Model Risk Management team, which has global responsibility for the independent control, review, and validation of models used across the Firm. In addition to traditional quantitative methodologies, MRM also reviews models based on artificial intelligence and machine learning, including Generative AI solutions. This role is responsible for the validation of commodities pricing models and tools. This position requires strong risk management mindset, proven subject matter expertise in commodities pricing models development and validation, and excellent technical, leadership, and organizational skills.
MRM professionals are based in major financial centers worldwide, including New York, London, Budapest, Frankfurt, Mumbai, and Tokyo, and work closely with business units, capital and risk analytics teams, risk managers, and financial controllers. The New York team collaborates closely with colleagues across the global Model Risk Management organization on model related issues spanning all asset classes. Primary Responsibilities
Understand the use and effectiveness of models and tools within the context of relevant Firm businesses and processes.
Perform independent model and tool validation of complex, state of the art pricing models used by Morgan Stanley's Fixed Income businesses - particularly within Commodities Trading-for daily valuation and risk management of trading positions.
Evaluate whether model and tool documentation meets established firmwide standards and policy requirements, and whether model testing is sufficiently robust to assess model performance, limitations, and risks.
Assess conceptual soundness and fitness for purpose of models and tools, ensuring that key assumptions and limitations are clearly identified, well understood, and appropriately controlled.
Conduct independent quantitative testing and verify that ongoing model performance monitoring frameworks are adequate and consistently applied.
Proactively identify, assess, and escalate thematic and idiosyncratic model and tool risk themes. Engage with 1LOD and 2LOD stakeholders to develop effective solutions to manage model and tool risks including evolving the model risk management practices such as performance monitoring and change management
Communicate model and tool review conclusions to relevant stakeholders and work with relevant 1LOD and 2LOD functions to develop appropriate remedial actions to effectively resolve identified model and tool issues. Track progress against issue remediation actions and take appropriate review actions to resolve.
Collaborate closely with a broad range of stakeholders - including developers, desk strategists, Market Risk, and Valuation Control-to ensure models and tools meet high standards of quality, governance, and implementation while supporting evolving business needs.
Produce high quality model and tool review reports consistent with MRM standards and suitable for senior management and governance forums.
Perform ad hoc and on demand analyses of model behavior, performance, and risk characteristics as required.
Own and deliver on high-profile, time-sensitive deliverables with minimal supervision
Establish and sustain productive relationships with model stakeholders in 1LOD, 2LOD and 3LOD
Represent the Model Risk Management team in interactions with Internal Audit department and with regulatory agencies as required
Work as part of a global Model Risk Management team spanning multiple locations, including New York, London, Tokyo, and Hong Kong.
Experience Required
At least 5 years of experience in derivative pricing model development and/or validation, with a particular focus on Commodities as well as Rates and FX asset classes.
Proficiency in statistical software packages, data mining and machine learning techniques
Prior Management Or Team Lead Experience (preferred).
Regulatory and internal audit engagements
Skills Required
Masters degree or PhD in a quantitative discipline or Finance, with a strong foundation in numerical methods, probability theory, stochastic calculus, and the practical application of quantitative models in finance.
A genuine and broad interest in financial markets, combined with a strong internal drive to critically challenge, improve, and enhance models using a rigorous, quantitative, and practical mindset.
Risk-oriented mindset including effective risk prioritization, critical and analytical questioning, and ability and willingness to speak up.
Clear analytical and critical thinking, sound business judgment, resourcefulness and a proactive, collaborative approach to problem solving.
Strong interpersonal and communication skills, with the ability to clearly articulate complex quantitative concepts to both technical and non technical stakeholders, and ability to influence and effect change.
Must be comfortable leading meetings and engaging with senior leaders in the Firm.
What You Can Expect From Morgan Stanley
At Morgan Stanley, we raise, manage and allocate capital for our clients – helping them reach their goals. We do it in a way that’s differentiated – and we’ve done that for 90 years. Our values - putting clients first, doing the right thing, leading with exceptional ideas, committing to diversity and inclusion, and giving back - aren’t just beliefs, they guide the decisions we make every day to do what's best for our clients, communities and more than 80,000 employees in 1,200 offices across 42 countries. At Morgan Stanley, you’ll find an opportunity to work alongside the best and the brightest, in an environment where you are supported and empowered. Our teams are relentless collaborators and creative thinkers, fueled by their diverse backgrounds and experiences. We are proud to support our employees and their families at every point along their work-life journey, offering some of the most attractive and comprehensive employee benefits and perks in the industry. There’s also ample opportunity to move about the business for those who show passion and grit in their work.
To learn more about our offices across the globe, please copy and paste https://www.morganstanley.com/about-us/global-offices into your browser.
Expected base pay rates for the role will be between $100,000 and $140,000 year at the commencement of employment. However, base pay if hired will be determined on an individualized basis and is only part of the total compensation package, which, depending on the position, may also include commission earnings, incentive compensation, discretionary bonuses, other short and long-term incentive packages, and other Morgan Stanley sponsored benefit programs
Morgan Stanley is an equal opportunity employer committed to building and maintaining a workforce that is diverse in experience and background. Our recruiting efforts reflect our strong commitment to a culture of inclusion, where individuals are hired, developed, and advanced based on their skills and talents.
Our workforce reflects a broad cross-section of the global communities in which we operate, bringing a variety of backgrounds, talents, perspectives, and experiences.
For more information, please visit: https://www.morganstanley.com/people-opportunities/eeo.
Morgan Stanley
Morgan Stanley is a leading global financial services firm providing a wide range of investment banking, securities, investment management and wealth management services. The Firm's employees serve clients worldwide including corporations, governments and individuals from more than 1,200 offices in 43 countries.
The Talent And Passion Of Our People Is Critical To Our Continued Success As a Firm. Together, We Share Four Core Values Rooted In Integrity, Excellence And Strong Team Ethic
Putting Clients First
Doing the Right Thing
Leading with Exceptional Ideas
Giving Back
Committing to Diversity and Inclusion
Morgan Stanley is committed to helping its employees build meaningful careers and we strive to be a place for people to learn, achieve and grow.
Firm Risk Management
Firm Risk Management (FRM) enables Morgan Stanley to achieve its business goals by partnering with business units across the Firm to realize efficient risk-adjusted returns, acting as a strategic advisor to the Board and protecting the Firm from exposure to losses as a result of credit, market, liquidity, operational, model and other risks.
You will collaborate with colleagues across FRM and the Firm to protect the Firm's capital base and franchise, advise businesses and clients on risk mitigating strategies, develop tools and methodologies to analyze and monitor risk, contribute to key regulatory initiatives and report on risk exposures and metrics to enable informed and strategic decision-making. Through thoughtful analysis and clear communication, we are best able to bring our ideas to the table and improve the Firm.
Firm Risk Management values diversity and is committed to providing a supportive and inclusive workplace for all employees.
Firm Risk Management's Unique Franchise Promotes
Flat, flexible and integrated global organization
Collaboration and teamwork
Credible, independent decision-making
Organizational influence
Creative and practical solutions
Meritocratic and diverse culture
Background On The Position
This role will reside within Firm Risk Management's Model Risk Management team, which has global responsibility for the independent control, review, and validation of models used across the Firm. In addition to traditional quantitative methodologies, MRM also reviews models based on artificial intelligence and machine learning, including Generative AI solutions. This role is responsible for the validation of commodities pricing models and tools. This position requires strong risk management mindset, proven subject matter expertise in commodities pricing models development and validation, and excellent technical, leadership, and organizational skills.
MRM professionals are based in major financial centers worldwide, including New York, London, Budapest, Frankfurt, Mumbai, and Tokyo, and work closely with business units, capital and risk analytics teams, risk managers, and financial controllers. The New York team collaborates closely with colleagues across the global Model Risk Management organization on model related issues spanning all asset classes. Primary Responsibilities
Understand the use and effectiveness of models and tools within the context of relevant Firm businesses and processes.
Perform independent model and tool validation of complex, state of the art pricing models used by Morgan Stanley's Fixed Income businesses - particularly within Commodities Trading-for daily valuation and risk management of trading positions.
Evaluate whether model and tool documentation meets established firmwide standards and policy requirements, and whether model testing is sufficiently robust to assess model performance, limitations, and risks.
Assess conceptual soundness and fitness for purpose of models and tools, ensuring that key assumptions and limitations are clearly identified, well understood, and appropriately controlled.
Conduct independent quantitative testing and verify that ongoing model performance monitoring frameworks are adequate and consistently applied.
Proactively identify, assess, and escalate thematic and idiosyncratic model and tool risk themes. Engage with 1LOD and 2LOD stakeholders to develop effective solutions to manage model and tool risks including evolving the model risk management practices such as performance monitoring and change management
Communicate model and tool review conclusions to relevant stakeholders and work with relevant 1LOD and 2LOD functions to develop appropriate remedial actions to effectively resolve identified model and tool issues. Track progress against issue remediation actions and take appropriate review actions to resolve.
Collaborate closely with a broad range of stakeholders - including developers, desk strategists, Market Risk, and Valuation Control-to ensure models and tools meet high standards of quality, governance, and implementation while supporting evolving business needs.
Produce high quality model and tool review reports consistent with MRM standards and suitable for senior management and governance forums.
Perform ad hoc and on demand analyses of model behavior, performance, and risk characteristics as required.
Own and deliver on high-profile, time-sensitive deliverables with minimal supervision
Establish and sustain productive relationships with model stakeholders in 1LOD, 2LOD and 3LOD
Represent the Model Risk Management team in interactions with Internal Audit department and with regulatory agencies as required
Work as part of a global Model Risk Management team spanning multiple locations, including New York, London, Tokyo, and Hong Kong.
Experience Required
At least 5 years of experience in derivative pricing model development and/or validation, with a particular focus on Commodities as well as Rates and FX asset classes.
Proficiency in statistical software packages, data mining and machine learning techniques
Prior Management Or Team Lead Experience (preferred).
Regulatory and internal audit engagements
Skills Required
Masters degree or PhD in a quantitative discipline or Finance, with a strong foundation in numerical methods, probability theory, stochastic calculus, and the practical application of quantitative models in finance.
A genuine and broad interest in financial markets, combined with a strong internal drive to critically challenge, improve, and enhance models using a rigorous, quantitative, and practical mindset.
Risk-oriented mindset including effective risk prioritization, critical and analytical questioning, and ability and willingness to speak up.
Clear analytical and critical thinking, sound business judgment, resourcefulness and a proactive, collaborative approach to problem solving.
Strong interpersonal and communication skills, with the ability to clearly articulate complex quantitative concepts to both technical and non technical stakeholders, and ability to influence and effect change.
Must be comfortable leading meetings and engaging with senior leaders in the Firm.
What You Can Expect From Morgan Stanley
At Morgan Stanley, we raise, manage and allocate capital for our clients – helping them reach their goals. We do it in a way that’s differentiated – and we’ve done that for 90 years. Our values - putting clients first, doing the right thing, leading with exceptional ideas, committing to diversity and inclusion, and giving back - aren’t just beliefs, they guide the decisions we make every day to do what's best for our clients, communities and more than 80,000 employees in 1,200 offices across 42 countries. At Morgan Stanley, you’ll find an opportunity to work alongside the best and the brightest, in an environment where you are supported and empowered. Our teams are relentless collaborators and creative thinkers, fueled by their diverse backgrounds and experiences. We are proud to support our employees and their families at every point along their work-life journey, offering some of the most attractive and comprehensive employee benefits and perks in the industry. There’s also ample opportunity to move about the business for those who show passion and grit in their work.
To learn more about our offices across the globe, please copy and paste https://www.morganstanley.com/about-us/global-offices into your browser.
Expected base pay rates for the role will be between $100,000 and $140,000 year at the commencement of employment. However, base pay if hired will be determined on an individualized basis and is only part of the total compensation package, which, depending on the position, may also include commission earnings, incentive compensation, discretionary bonuses, other short and long-term incentive packages, and other Morgan Stanley sponsored benefit programs
Morgan Stanley is an equal opportunity employer committed to building and maintaining a workforce that is diverse in experience and background. Our recruiting efforts reflect our strong commitment to a culture of inclusion, where individuals are hired, developed, and advanced based on their skills and talents.
Our workforce reflects a broad cross-section of the global communities in which we operate, bringing a variety of backgrounds, talents, perspectives, and experiences.
For more information, please visit: https://www.morganstanley.com/people-opportunities/eeo.
Salary : $100,000 - $140,000