Model Risk Manager
Definition
AModel Risk Manager is a type of quantitative Risk Manager role that focuses on Model Risk, namely the potential for error in the development, implementation and/or the application or interpretation of results produced of a financial / Risk Model. Model risk related errors are risk factors that can lead to a variety of financial and / or reputational Loss events.
Roles and Responsibilities
- Develop a formal model Risk Management Framework for the organization that encompasses all material risk models used
- Be involved in the Model Validation process
- Be involved in the model approval process
Skills
Description of the abilities, proficiencies, know-hows, skills the a person must possess in order to carry out the risk management responsibilities
- Business Skills
- Technical Skills
- General Skills (Linguistic)
Seniority Level
Indication as to whether the function is formally segmented into seniority levels (e.g. junior, senior) that have material skill / experience requirements and are not simply organizational arrangements.
Experience
Experience denotes the intangible qualities acquired by a person in the process of having performed certain functions in the past
- Required experience in related business models
- General work experience
Education
Education denotes any formal and long duration training that is considered an important prerequisite for a role
- Educational level, e.g., university or college degree
- Subject matter of studies / Specialization
- Educational institution
Qualifications
Qualifications are formal certifications that a person fulfills some professional requirements
- Certifications
- Accreditations
- Admittance to professional societies etc.
- Be involved in the model approval process
