Senior Manager, Model Validation

Requisition ID: 213475

Join a purpose driven winning team, committed to results, in an inclusive and high-performing culture.

The Global Model Risk Management area provides independent and consistent model validation and approval across various risk types, including market risk, retail/non-retail credit risk, operational risk, provisioning and capital models, anti-money laundering, and other key risk/financial models. This position is for the Senior Manager role that plays a key part in ensuring the sound development and ongoing performance of the IFRS 9 provisioning models used in the Bank's retail and non-retail business lines. This position entitles activities related to model validation work to establish overall soundness of the credit risk measurement, delivery of various ad-hoc validation assignments, and collaboration/communication with the model development teams and business lines to ensure model development methodologies and validation processes are in compliance with internal framework and regulatory requirements.

Is this role right for you? In this role, you will:

Model Validation

• Lead the independent validation of IFRS9 provisioning models across all business lines, including all parameters (PD, LGD, Lifetime, SIR, EAD), assessing their adequacy, effectiveness and compliance with regulatory requirements.
• Conduct comprehensive review of the data processing, including the independent replication of data extraction and data manipulation steps, as well as assessing the suitability and sanity of the data sources. ñ Evaluate the assumptions, methodology, and outputs of models, including forward-looking macroeconomic forecasts.
• Assess model performance using quantitative tests, challenge outputs, and identify areas for improvement through sensitivity analyses and benchmarks.
• Provide feedback to model developers, communicate validation results and findings to model owners, and suggest actions to address deficiencies in data or modelling processes, which may lead to model recalibration and methodology enhancement.
• Responsible for completing validation reports and submission of all necessary documentation related to validation assignments to Director; ensure accuracy and completeness of archived information and related documentation to allow independent third-party review of the validation work performed.
• Provide support to resolve outstanding audit and regulatory issues, and to respond to ad hoc senior management and regulatory requests.
• Conduct the annual model risk rating assessment and oversee the periodic updates and integrity of the IFRS 9 model inventory to ensure accurate and timely uploads of model changes, including recalibrations, extensions, decommissioning as well as issue and exception management.

Team Leadership

• Lead and manage a team of model validators, providing guidance, mentorship, and performance management.
• Develop and implement model validation strategies and methodologies aligned with regulatory requirements and industry best practices.
• Foster a culture of continuous improvement within the model validation team.
• Support the implementation of automation and enhancements initiatives internally and/ or through cross functional collaboration.

Regulatory Compliance

• Ensure compliance with all relevant regulatory requirements, internal policies and procedures.
• Keep abreast of industry and regulatory developments and evolving expectations and recommend and enforce improvements to tests/methods to fulfill internal validation needs and to align (if applicable) with industry practices. Stakeholder Management

Stakeholder Management

• Engage and maintain collaborative relationships with the key stakeholders (including model developers, users, internal audit and senior management) to facilitate the validation process and resolve discussions / escalations of validation results in a timely manner.
• Effectively communicate complex technical information to both technical and non-technical audiences.

Do you have the skills that will enable you to succeed in this role? We'd love to work with you if you have experience with:

Required Education & Experience

• Preferably at a Masters or PhD level, that provides exposure to quantitative/statistical methods.
• 5+ years of experience in the development and/or validation of risk and/or financial models at a major financial institution.
• Possess exposure to retail/small business/non-retail credit risk management applications and practices, with proven knowledge of IFRS 9 and AIRB related credit risk management and quantification. ñ Demonstrated ability in addressing regulatory issues and developments related to credit risk modelling.
• Industry certification or credentials will be asset (e.g., FRM, CFA, CQF, MBA)

Required Functional & Technical Competencies

• Proficiency in at least one of the statistical/numerical packages (Python/SAS/R/MATLAB). Ability to adapt to various programming languages and environments. Advanced Python proficiency is preferred.
• Have a strong 'hands-on' orientation to data analysis and statistical modelling work ñ Proven ability in analyzing and manipulating large datasets and conducting complex data queries for efficient extraction and manipulation. Strong knowledge of data visualization tools to effectively communicate results and findings.
• Possess a sound understanding of non-retail and retail lending businesses conducted by the Bank.
• Have a solid knowledge of the Bank's existing credit risk management policies and procedures across business lines and understanding of emerging business activities, risks and risk management tools.
• Maintain awareness of, and involvement in, regulatory and best practice developments from a wide variety of regulatory and industry bodies worldwide.
• Possess excellent social, relationship-building and people management skills. In all these instances, significant reliance is placed on the incumbent to advertise complex issues effectively and constructively to stakeholders across business lines, and regularly to senior management.
• Be able to handle complicated situations / environment, simultaneous tasks under multiple concurrent work streams and meet monthly / quarterly and ad-hoc deadlines.
• Be able to routinely deal with multiple ongoing projects, both planned and ad hoc, and must also be able to put in personal effort required through long hours in order to meet project deadlines.
• Be able to keep abreast of developments in best practice through extra-curricular and person reading.

Behavioural Competencies

• Self-driven individual with demonstrated ability to lead multiple initiatives/projects. Be able to independently deliver validation projects and manage efficiently multiple priorities in order to deliver work assignments within agreed timelines.
• Forward and separate thinking to identify emerging regulatory/market requirements on credit risk analytics.
• Effective presentation and strong spoken and written communication skill is essential.
• Team leadership skills to promote excellence in review and validation work, as well as general acceptance of and confidence in the outputs produced by the area.
• Flexibility and creativity in problem solving, including strong abilities of innovation and pathfinding.
• Strong ability to devise and implement operational frameworks, processes, controls and documentation approaches for a team comprising of quantitative staff.

What's in it for you?

• The opportunity to join a forward-thinking and collaborative team, surrounded by innovative thinkers
• A rewarding career path with diverse opportunities for professional development
• Internal training to support your growth and enhance your skills
• An inclusive working environment that encourages creativity, curiosity, and celebrates success!
• Work in an Ecosystem; a bright, modern space where you'll have access to group seating, offices, collaboration spaces, a cafeteria with different options daily, a bistro, and more
• Hybrid Work Environment

Location(s): Canada : Ontario : Toronto

Scotiabank is a leading bank in the Americas. Guided by our purpose: "for every future", we help our customers, their families and their communities achieve success through a broad range of advice, products and services, including personal and commercial banking, wealth management and private banking, corporate and investment banking, and capital markets.

At Scotiabank, we value the unique skills and experiences each individual brings to the Bank, and are committed to creating and maintaining an inclusive and accessible environment for everyone. If you require accommodation (including, but not limited to, an accessible interview site, alternate format documents, ASL Interpreter, or Assistive Technology) during the recruitment and selection process, please let our Recruitment team know. If you require technical assistance, please click here. Candidates must apply directly online to be considered for this role. We thank all applicants for their interest in a career at Scotiabank; however, only those candidates who are selected for an interview will be contacted.