Head of Credit Risk Modeling - SMBC
New York, NY 10172
About the Job
SMBC Group is a top-tier global financial group. Headquartered in Tokyo and with a 400-year history, SMBC Group offers a diverse range of financial services, including banking, leasing, securities, credit cards, and consumer finance. The Group has more than 130 offices and 80,000 employees worldwide in nearly 40 countries. Sumitomo Mitsui Financial Group, Inc. (SMFG) is the holding company of SMBC Group, which is one of the three largest banking groups in Japan. SMFG’s shares trade on the Tokyo, Nagoya, and New York (NYSE: SMFG) stock exchanges.
In the Americas, SMBC Group has a presence in the US, Canada, Mexico, Brazil, Chile, Colombia, and Peru. Backed by the capital strength of SMBC Group and the value of its relationships in Asia, the Group offers a range of commercial and investment banking services to its corporate, institutional, and municipal clients. It connects a diverse client base to local markets and the organization’s extensive global network. The Group’s operating companies in the Americas include Sumitomo Mitsui Banking Corp. (SMBC), SMBC Nikko Securities America, Inc., SMBC Capital Markets, Inc., SMBC MANUBANK, JRI America, Inc., SMBC Leasing and Finance, Inc., Banco Sumitomo Mitsui Brasileiro S.A., and Sumitomo Mitsui Finance and Leasing Co., Ltd.
The anticipated salary range for this role is between $235,000.00 and $265,000.00. The specific salary offered to an applicant will be based on their individual qualifications, experiences, and an analysis of the current compensation paid in their geography and the market for similar roles at the time of hire. The role may also be eligible for an annual discretionary incentive award. In addition to cash compensation, SMBC offers a competitive portfolio of benefits to its employees.
Role Description
The Executive Director for Credit Risk Model Development will oversee the development, implementation, and maintenance of credit risk models for the bank. This role involves leading a team of quantitative analysts and modelers, ensuring compliance with regulatory requirements, and supporting strategic decision-making processes. The team is also responsible for developing credit stress testing, internal credit rating, and Current Expected Credit Loss (CECL) models.
Role Objectives
- Leadership and Team Management:
- Lead and mentor a team of credit risk modelers.
- Foster a collaborative and innovative team environment.
- Provide guidance and support for professional development.
- Model Development and Implementation:
- Oversee the development of Probability of Default (PD), Loss Given Default (LGD), Exposure at Default (EAD), credit stress testing, internal credit rating, and CECL models.
- Ensure models are developed in compliance with regulatory standards (e.g., Basel III, IFRS 9, CECL).
- Collaborate with IT and business units to implement and integrate models into the bank’s systems.
- Regulatory Compliance and Reporting:
- Ensure all changes and industry best practices.
- Risk Management and Analysis:
- Conduct regular reviews and back-testing of models to ensure accuracy and reliability.
- Identify and address model risks and limitations.
- Provide insights and recommendations to senior management based on model outputs.
- Stakeholder Engagement:
- Act as a liaison between the modeling team and other departments, including Risk Management, Finance, and IT.
- Communicate complex modeling concepts and results to non-technical stakeholders.
- Participate in cross-functional projects and committees.
Qualifications and Skills
- Master’s degree in Statistics, Mathematics, Engineering, Econometrics, or a related field.
- Minimum of 10 years of experience in credit risk modeling or a related area.
- Strong knowledge of credit risk management and regulatory frameworks (e.g., Basel III, CCAR, CECL).
- Proficiency in statistical programming languages (e.g., SQL, R, Python).
- Excellent analytical, problem-solving, and communication skills.
- Proven leadership and team management experience.
- Strong project management skills.
Preferred Qualifications:
- Experience with machine learning techniques and their application in credit risk modeling.
- Familiarity with advanced risk management tools and software.
Additional Requirements
D&I Commitment
Responsible for fostering a culture of diversity and inclusion, holding leaders accountable for creating an inclusive environment through awareness and practice of equity in recruiting, developing, and promoting diverse talent.
#LI-RCH
SMBC’s employees participate in a Hybrid workforce model that provides employees with an opportunity to work from home, as well as, from an SMBC office. SMBC requires that employees live within a reasonable commuting distance of their office location. Prospective candidates will learn more about their specific hybrid work schedule during their interview process. Hybrid work may not be permitted for certain roles, including, for example, certain FINRA-registered roles for which in-office attendance for the entire workweek is required.
We are an equal employment opportunity employer. All qualified applicants will receive consideration for employment without regard to race, color, religion, gender, national origin, disability status, protected veteran status or any other characteristic protected by law. SMBC provides reasonable accommodations for employees and applicants with disabilities consistent with applicable law. If you need a reasonable accommodation during the application process, please let us know at accommodations@smbcgroup.com.