Manager, Model Risk Governance

LOCATION & WORK ENVIRONMENT:

Hybrid position available in Toronto.

DEPARTMENT:

Risk

EMPLOYMENT TYPE & AVAILABILITY:

Full-Time | Immediate

ANNUAL SALARY:

$100,000 - $120,000

OVERVIEW

Canada Guaranty is currently seeking a Manager, Model Risk Governance to join our growing Risk Management team. The Risk Management team has overall responsibility for guiding the prudent growth and evolution of the mortgage insurance portfolio through the effective use of analytics, credit policy, and an Enterprise Risk framework. The mandate of this position is to provide oversight, monitoring, and validation on all models used at Canada Guaranty.

The successful candidate will ensure all models comply with internal policies and external regulations, and that they function as intended. This is a business-critical position with high visibility and regular contact with senior and executive management across the organization. Reporting to the Senior Manager, Model Risk Governance, the successful candidate will bring a thorough understanding of validating financial, statistical, and machine learning models used across various business lines. While experience in secured lending is beneficial, the Manager will be responsible for conducting thorough model validations, ensuring adherence to industry standards, and providing insightful reports to senior management.

At Canada Guaranty, our performance-driven culture is built on successful teamwork. If you share a passion for excellence and are a proven team player, we want to hear from you!

KEY RESPONSIBILITIES

• Model Validation, Vetting and Testing: Conduct independent and comprehensive validations of models across various business domains, including but not limited to credit, property valuation, and stress testing models.
• Documentation and Reporting: Prepare clear, concise, and well-documented validation reports, outlining model assumptions, methodologies, performance, and any identified risks or limitations.
• Model Assessment: Evaluate model performance, conduct back-testing, sensitivity analysis, and stress testing to assess model robustness under different scenarios. Conduct assessments of models to identify potential vulnerabilities or issues and provide recommendations to mitigate identified risks.
• Compliance: Ensure models follow internal risk management policies, industry regulations, and best practices. Support the implementation and maintenance of the model risk management policy and procedures to ensure compliance with regulatory guidelines.
• Collaboration: Work closely with cross-functional teams, including model developers, business stakeholders, and senior risk management professionals, to understand model objectives and provide recommendations for model improvements.
• Model Monitoring: Aid in the development and maintenance of monitoring frameworks for ongoing model performance and model drift analysis.
• Continuous Learning: Stay current on the latest trends, tools, and methodologies in model development and risk management to enhance the validation process.
• Work closely with the modeling teams across the organization to understand and constantly evaluate risk from both a detailed and enterprise level.

More specifically, the Manager will have the following qualities:

• Expertise in building and validating statistical, financial models, including stress testing, scenario analysis, and sensitivity analysis. Understanding of various financial instruments and their risk characteristics.
• Proficiency in programming languages such as SAS, Python, or R for developing and validating models.
• Strong skills in data analysis and statistical modeling to assess model performance and identify potential risks.
• Advanced knowledge of quantitative techniques, including regression analysis, and time series analysis. Ability to apply these methods to evaluate model accuracy and robustness.
• Experience with model risk management frameworks and regulatory guidelines, such as OSFI's proposed revisions to E23 or familiarity with the OCC's SR 11-7.
• Strong ability to document model development, validation processes, and results comprehensively. Ensure that all documentation meets regulatory standards and can be easily understood by auditors and other stakeholders.
• Provide oversight and guide stakeholders on adherence to the model governance policy.
• Perform other duties and assist with special projects, as required.

FIRST YEAR PRIORITIES

After the initial six months in the role, the successful candidate will have:

• Completed detailed validation reports on existing models with results communicated to stakeholders.
• Developed a thorough understanding of all internal and third-party models employed by Canada Guaranty.
• Established relationships with key individuals within Canada Guaranty and gained their support by demonstrating the benefit of a model risk governance framework.

REQUIRED SKILLS & EXPERIENCE

Knowledge:

• 5+ years of progressive relevant work experience in retail banking and/or insurance sectors, specifically related to development or assessment of risk models related to consumer credit.
• In-depth knowledge of the model life cycle and model risk management practices.
• Demonstrated ability to summarize key findings from model performance reviews and recommendations for improvement.
• Ability to develop reports that effectively communicate key metrics for senior management.
• Solid experience in credit risk model lifecycle, including model development, validation and monitoring.
• Excellent understanding of analytical, financial, competitive, regulatory, and legal environments in assessing credit and fraud risk.
• Effectively manage all stakeholders in model risk governance.
• Strong interpersonal and problem-solving skills with attention to detail.
• Demonstrate ability to navigate ambiguity, think creatively, and challenge the status quo.

Technical Proficiency:

• Strong understanding of quantitative methods and statistical modelling.
• Technical proficiency in using, developing, and the oversight of models utilizing SAS and SQL Python, R, or other similar software.
• Practical statistical experience in academic or business settings.
• Strong analytical and data management skills. Experience in extracting, preparing, and analyzing large data sets.
• Ability to summarize complex subjects and effectively report to a broad audience.

Analytical Skills:

• Thorough understanding of residential mortgage lending, property markets, and consumer credit risk modeling.
• Solid grasp of credit risk management concepts (Probability of Default, Loss Given Default, Exposure at Default, Expected Loss, Economic Capital, etc.).
• Solid understanding of Stress Testing models and scenario generation.
• Ability to synthesize large data sets and draw insights and recommendations.

Character:

• Professional acumen and a passion for excellence.
• Demonstrated ability to work efficiently and accurately.
• Strong problem-solving skills.
• Effective communication skills, comfortable presenting to an executive audience.
• Effective time management, organization and project management skills.
• A strong team spirit with a desire to help.
• Self-motivation, flexibility and ability to manage ambiguity.

EDUCATION

• Master's degree in an Economics, Statistics, Finance, Actuarial or a related field is preferred.

NOTE: Canada Guaranty is committed to fostering an inclusive, accessible environment where all employees feel valued and supported. We are dedicated to building a workforce that is representative of the communities we operate in and serve. If you require accommodation for the recruitment/interview process due to a disability (which may be invisible or visible, temporary or permanent), please let us know and we will work with you to meet your needs.

We appreciate your interest in this position; however, only candidates selected for an interview will be contacted.