Model Risk Management

We're seeking someone to join our team as a Model Risk Associate. Are you interested in how mathematical models help the business? What could be the risks when we use these models in the financial industry? You will gain insight into global model risk management.

In the Firm Risk Management division, we advise businesses across the Firm on risk mitigation strategies, develop tools to analyze and monitor risks and lead key regulatory initiatives. The Model Risk Management group is part of the Global Firm Risk Management (FRM) department of Morgan Stanley and it has global responsibility for the independent risk control, review and validation of models used by Morgan Stanley. These include pricing models for derivatives in all asset classes, as well as models used for counterparty credit risk (CVA), market risk, credit risk, operational risk, wealth management products, and capital and liquidity stress tests. In addition to traditional methodologies, MRM also reviews AI and ML models, and GenAI solutions. MRM professionals in New York, London, Budapest, Frankfurt, Mumbai and Tokyo work closely with business capital, risk analytics, risk managers and financial controllers.  The Budapest team works closely with other members of the Model Risk Management group on model issues across all asset classes globally.

Since 1935, Morgan Stanley is known as a global leader in financial services, always evolving and innovating to better serve our clients and our communities in more than 40 countries around the world.

What you'll do in the role:

• Conduct model validation for Incremental Risk Charge (IRC) models in the market risk space by challenging model assumptions, mathematical formulation, and implementation

• Conduct independent testing to assess model accuracy and robustness under different scenarios and market conditions

• Assess and quantify model risks due to model limitations and develop compensating controls

• Develop high-quality validation reports highlighting risks and limitations of models and communicate findings to stakeholders, senior management

• Collaborate with Global MRM teams, Developers, Model Control Officers, Valuation Control and Risk Managers to manage model risk across the model lifecycle

• Cultivate and manage effective relationships with regulators by providing accurate and timely submissions

What you'll bring to the role:

• Master’s or Ph.D. degree in Mathematics, Mathematical Finance, Physics, Engineering, Finance, Economics or a related quantitative field or equivalent

• At least 2-4 years of relevant model risk management and/or quantitative modelling experience. The ideal candidate will have experience with IRC or VaR models gained at a financial institution

• Knowledge of relevant regulatory requirements for market and credit risk

• Interest or experience with programming in a high-level language such as Python 

• The ability to effectively communicate with a wide range of stakeholders, both written and verbally

• An interest in working in a fast-paced environment, often balancing multiple high priority deliverables

• Clear thinking, good business sense and judgment, proactive and collaborative attitude

What you can expect from Morgan Stanley:

We are committed to maintaining the first-class service and high standard of excellence that have defined Morgan Stanley for over 89 years. Our values - putting clients first, doing the right thing, leading with exceptional ideas, committing to diversity and inclusion, and giving back - aren’t just beliefs, they guide the decisions we make every day to do what's best for our clients, communities and more than 80,000 employees in 1,200 offices across 42 countries. At Morgan Stanley, you’ll find an opportunity to work alongside the best and the brightest, in an environment where you are supported and empowered. Our teams are relentless collaborators and creative thinkers, fueled by their diverse backgrounds and experiences. We are proud to support our employees and their families at every point along their work-life journey, offering some of the most attractive and comprehensive employee benefits and perks in the industry. There’s also ample opportunity to move about the business for those who show passion and grit in their work.

Morgan Stanley Budapest is an integral part of the Firm’s global business functions including Technology, Finance, Risk, Institutional Securities and Wealth Management. Morgan Stanley has been rooted in the Budapest community since 2006 and is considered a leading employer among the area’s highly skilled talent. Our innovative team delivers deep technical and mathematical expertise to support the Firm’s capabilities in quantitative analysis, data analysis, and risk management. Learn more about our unmatched culture in Morgan Stanley Budapest. 

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WHAT YOU CAN EXPECT FROM MORGAN STANLEY:

We are committed to maintaining the first-class service and high standard of excellence that have defined Morgan Stanley for over 89 years. Our values - putting clients first, doing the right thing, leading with exceptional ideas, committing to diversity and inclusion, and giving back - aren’t just beliefs, they guide the decisions we make every day to do what's best for our clients, communities and more than 80,000 employees in 1,200 offices across 42 countries. At Morgan Stanley, you’ll find an opportunity to work alongside the best and the brightest, in an environment where you are supported and empowered. Our teams are relentless collaborators and creative thinkers, fueled by their diverse backgrounds and experiences. We are proud to support our employees and their families at every point along their work-life journey, offering some of the most attractive and comprehensive employee benefits and perks in the industry. There’s also ample opportunity to move about the business for those who show passion and grit in their work.

Certified Persons Regulatory Requirements:
If this role is deemed a Certified role and may require the role holder to hold mandatory regulatory qualifications or the minimum qualifications to meet internal company benchmarks.

Flexible work statement
Interested in flexible working opportunities? Morgan Stanley empowers employees to have greater freedom of choice through flexible working arrangements. Speak to our recruitment team to find out more.

Morgan Stanley is an equal opportunities employer. We work to provide a supportive and inclusive environment where all individuals can maximize 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.