Firm Risk ManagementFirm 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 8 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.
-Ability work in a dynamic, fast-paced, high-pressure environment, managing multiple high priority deliverables
-Experience managing and leading a global team
Expected base pay rates for the role will be between $120,000 and $210,000 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.
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