BNP Paribas Seeks Vice President for Model Risk Oversight
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LONDON – BNP Paribas, one of the world’s leading financial institutions, is actively recruiting a Vice President to spearhead Model Risk Governance and Oversight within its Market Abuse Surveillance team. This strategic role will focus on ensuring robust model risk management practices across the institution’s global surveillance activities,aligning with evolving regulatory expectations and best practices.
Understanding the Role
The Vice President will report directly to the Global Head of Model Review,Challenge,and Oversight,working across a broad spectrum of topics related to surveillance and model risk. The position requires a deep understanding of model risk management principles and the ability to coordinate processes, provide guidance, and facilitate decision-making within a complex, international framework. The role is pivotal in maintaining the integrity of BNP Paribas’s market surveillance systems and upholding its commitment to ethical conduct.
Key Responsibilities
The position encompasses a wide range of responsibilities, categorized into strategic governance, regulatory compliance, stakeholder engagement, and reporting. These include assisting with the execution of model risk management governance, maintaining risk rating methodologies, overseeing governance structures, and ensuring alignment with internal policies and regulatory requirements. A key aspect of the role involves acting as a liaison between various internal teams – including Risk IRC Model Risk Management, Compliance, and Internal Audit – to foster effective governance and issue resolution.
Moreover, the Vice President will be responsible for producing model risk governance reports, providing executive-level updates, and identifying opportunities for process improvement and automation. This requires advanced data analytics skills and proficiency in tools like Excel,PowerPoint,Tableau,and Power BI.
Did You Know? Effective model risk management is crucial for financial institutions to maintain stability and prevent market manipulation, as highlighted by the Basel Committee on Banking Supervision’s principles for sound risk management [[1]]?
Qualifications and Experience
Candidates must possess a Master’s degree (or equivalent professional qualification) in finance, risk management, economics, statistics, or a related field. Extensive experience in non-financial risk, governance, and regulatory compliance within a banking habitat is essential. A strong understanding of the three lines of defense model and proven stakeholder management skills are also critical. Direct experience managing regulatory interactions and a thorough knowledge of regulations from bodies like the FRB, OCC, PRA, and ECB are highly desirable.
The ideal candidate will demonstrate a proactive approach to problem-solving,excellent communication skills,and the ability to collaborate effectively across regions and seniority levels. Prior knowledge of Market Abuse Surveillance or a trading background woudl be considered a important advantage.
Key Requirements at a Glance
| Requirement | Details |
|---|---|
| Education | Master’s Degree or equivalent |
| Experience | Extensive risk, governance, and compliance experience |
| Skills | Stakeholder management, data analytics, regulatory knowledge |
| Knowledge | Three lines of defense model, FRB/OCC/PRA/ECB regulations |
BNP Paribas: A Commitment to People and Sustainability
BNP Paribas emphasizes a strong employer promise built around three pillars: a great place to work, commitment to sustainability, and dedication to employee growth. The bank offers a comprehensive benefits package, including generous holiday allowances, sustainable investment pension plans, extensive wellbeing programs, and opportunities for professional growth. The organization is committed to achieving Net Zero in its financing and investment portfolios by 2050 and actively promotes diversity and inclusion through various employee networks.
Pro Tip: BNP Paribas’s commitment to sustainability and employee wellbeing can be a significant differentiator for candidates seeking a purpose-driven career.
The bank’s dedication to fostering a collaborative and inclusive culture is evident through its numerous professional networks, including Pride network, Ability Network, and MixCity, among others. BNP Paribas is an equal opportunity employer and encourages applications from individuals of all backgrounds.
What are your thoughts on the increasing importance of model risk management in today’s financial landscape? How can financial institutions best balance innovation with robust risk controls?
Model risk management has become increasingly critical in the financial industry due to the growing complexity of financial models and the potential for significant financial losses resulting from model errors. regulatory scrutiny in this area has also intensified, with bodies like the Federal Reserve and the European Central Bank issuing guidelines and expectations for robust model risk management frameworks. The trend towards greater automation and the use of artificial intelligence in financial modeling further underscores the need for effective oversight and validation. Looking ahead,we can expect to see continued investment in model risk management capabilities and a greater focus on data quality and model openness.
Frequently Asked Questions
- What is model risk? Model risk is the potential for adverse consequences from decisions based on incorrect or misused model outputs.
- Why is model risk management significant? Effective model risk management protects financial institutions from financial losses, regulatory penalties, and reputational damage.
- what are the key components of a model risk management framework? A framework typically includes model development, validation, implementation, and ongoing monitoring.
- What skills are required for a role in model risk management? Strong analytical skills, a deep understanding of statistical modeling, and excellent communication skills are essential.
- What is the three lines of defense model? It’s a risk management framework that assigns duty for risk management across the organization, with the frist line owning and controlling risks, the second line overseeing and challenging the first line, and the third line providing independent assurance.
We hope this article provided valuable insight into this exciting opportunity at BNP Paribas. Please share this article with your network and feel free to leave a comment below with your thoughts. Don’t forget to subscribe to our newsletter for the latest updates in the world of finance and risk management!
