Northern Trust Job Description

Summary

This opportunity is for a role within the Model Risk Management team at Northern Trust. The Model
Risk Management Group oversees the enterprise-wide model risk guidelines and performs the
independent validation of models that impact strategic risk, credit risk, operational risk, market risk and
the capital allocation framework.

This role, under general supervision (but works independently most of the time), responsible for
performing a variety of moderately complex risk analytics and/or capital allocation framework activities
for the Corporation. Resolves moderately complex issues in modeling and measuring risk, allocation of
capital for performance measurement or other aspects of risk measurement.

Major Duties

1. Responsible for performing model validation/monitoring of a variety of moderately complex

analytical models or executes model related activities for risk models.
2. Ensures model development, monitoring, and validation approaches meet regulatory expectations
like – CCAR, CECL, IFRS9, BASEL, BU etc and internal risk management needs like MRMG Procedures.
3. Responsible for the independent validation of quantitative models (involving PD/LGD &
EAD) across the organization; resolving complex issues in capital estimation, regulatory reporting or
external financial statements and other aspects of model risk measurement.
4. Conduct hands-on qualitative and quantitative evaluation of models proposed by the company’s risk
and business units for various regulations. This includes assessing model risks by performing
detailed reviews of the models (input, methodology and output), researching model approaches,
and assessing overall model strengths, creating alternative models, and evaluating performance
thresholds including ongoing monitoring of models.
5. Operates independently; has in-depth knowledge of business unit / function and complex
quantitative modeling techniques (e.g. Transition Matrix Approach, Regressions, Survival analysis,
Time Series Analysis)
6. Supports development of comprehensive documentation and testing of risk management
framework
7. May have direct interaction with committees and/or Management
8. Able to serve as a key subject matter expert and mentor to other more junior level employees
9. May manage daily operational activities and supervise day-to-day work of junior level employees
(but not a formal management role)
10. More technically sound in area of expertise and has broader knowledge of other areas
11. Delivers a work product that requires little revision, able to facilitate discussions and reach decisions

NTAC:3NS-20
Candidate Qualification:

 Advanced quantitative degree (Masters, PhD) in a related field (math, statistics, economics)
from Tier 1 colleges.
 2-4 years of relevant industry experience in quantitative risk management (BFSI, model
validation, model development)

Required Knowledge/Skills:

 Excellent oral and written communication skills combined with strong analytical and problem
solving skills.
 A solid understanding of general statistical principles (e.g. estimation, hypothesis testing) and
modelling techniques (e.g. OLS, logistic regression, time series analyses).
 Strong conceptual and technical knowledge of risk concepts and quantitative modeling
techniques.
 Prior quantitative model building or quantitative model validation experience is highly desirable,
preferably in BFSI domain
 Programming knowledge in SAS or R is required.
 Experience in regulatory (CCAR, IFRS9, CECL etc) model development/validation is highly
preferred.
 Financial Regulation knowledge (Dodd Frank, BASEL III) is preferred.

NTAC:3NS-20