Model Validation Associate

  • Competitive
  • Budapest, Budapest fovaros, Hungary Budapest Budapest fovaros HU
  • Permanent, Full time
  • Morgan Stanley
  • 24 Mar 18 2018-03-24

See job description for details

Risk Management

The cornerstone of Morgan Stanley’s risk management philosophy is the execution of risk-adjusted returns through prudent risk-taking that protects Morgan Stanley’s capital base and franchise. Risk Management protects the Firm from exposure to losses resulting from defaults by our lending and trading counterparties.

Operational Risk Department (ORD)

Operational risk refers to the risk of financial or other loss, or potential damage to a firm’s reputation, resulting from inadequate or failed internal processes, people, systems, or from external events (e.g., fraud, legal and compliance risks or damage to physical assets). The Firm incurs operational risk across the full scope of its business activities, including revenue-generating activities (e.g., sales and trading), infrastructure groups and control functions (e.g., information technology and trade processing).

The Firm has developed an Operational Risk Management framework to identify and assess significant operational risks and ensure appropriate mitigation actions are undertaken. The framework is deployed across business units, infrastructure groups and control functions globally. The framework is based on a “Three Lines of Defense” model:
- 1st Line: Business Units/Infrastructure Groups own their operational risk and are responsible for its management;
- 2nd Line: Independent Risk Management and control functions provide independent governance and oversight of operation risk management across the Firm and partner with business units and infrastructure groups to anticipate, mitigate and report on operational risk;
- 3rd Line: Internal Audit provides independent assessment and validation.
Operational Risk Department (ORD) operates as part of the Second Line of Defense .

Position Description

Morgan Stanley is seeking a dynamic and high performing Associate to help grow the Financial Crimes Model Validation (“FCMV”) group within the Operational Risk Department. Recognizing the importance of meeting heightened regulatory scrutiny and enhanced rigor in the firm’s AML efforts, in 2015 the Operational Risk Department of Morgan Stanley created a new group to oversee the review of financial crimes models concerned with anti -money laundering (“AML”), -bribery and –corruption surveillance. This opportunity involves expanding a small team of professionals to identify and mitigate financial crimes model risk.



· Perform independent validations of financial crimes models across various lines of business, with particular attention to data, systems and process concerns

· Design and build complex analytics and dashboards, leveraging SQL queries, R scripting and other technologies

· Leverage testing observations to contribute to improving the FCMV group’s review methodology on financial crimes models

· Develop and maintain model review documentation

· Help develop challenger models to demonstrate effective challenge of assumptions

· On-going communication with team management to discuss the status of model review work and test work results

Skills Required

· College degree in economics, finance, engineering, computer science, data science, IT, applied mathematics, data engineering or other analytical discipline from a recognized university

· Experience in SQL

· R, Matlab, Python or any statistical language knowledge

· Knowledge in designing and building dashboards and analyzing data sets with any BI platform (Tableau is preferred)

Skills Desired

· Experience in R-language

· Experience covering (preferably at a financial institution):

· AML and/or transaction monitoring systems

· Demonstrated knowledge of AML rules, regulations, best practices and typologies

· process validation/audit experience

For more information and to apply, please visit our website and upload your English CV here .

Morgan Stanley is an equal opportunities employer. We work to provide a supportive and inclusive environment where all individuals can maximise their full potential. Our skilled and creative workforce is comprised of individuals drawn from a broad cross section of the global communities in which we operate and who reflect a variety of backgrounds, talents, perspectives and experiences. Our strong commitment to a culture of inclusion is evident through our constant focus on recruiting, developing and advancing individuals based on their skills and talents.