Overview
Model risk is the potential for adverse consequences (e.g., financial loss, poor business or strategic decisions, reputational damage) arising from decisions based on incorrect or misused model outputs and reports. Model risk comes down to making informed business decisions by understanding a model's weaknesses or limitations. With a variety of models designed to maintain Navy Federal's financial stability and its ability to make impactful member-related decisions, it is more important than ever to ensure those models are tested, challenged on current model usage and practices, and assessed on the effectiveness for their intended uses.
Our team serves as a 2nd line of defense, and our mission is to:
Be a trusted partner in modeling and risk management
Challenge models and deliver transparency for a common interest across the organization
Deliver model risk as a competitive advantage that benefits our members
Manage model risk, not eliminate it
Collectively become a modeling -Center of Excellence- for the enterprise
MRM is responsible for maintaining a governance framework that standardizes model risk activities from model development through retirement. MRM uses control processes to ensure sound model risk management across all model lifecycle activities.
Core components of Model Risk Management's role include:
Identification
Maintaining a full inventory of models including documentation, code, and datasets
Assessment
Assessing the conceptual soundness of models and their risk through analysis
Recommending model performance enhancements and risk mitigations
Monitoring
Monitoring model usage, changes, performance, data drift, and production errors
Reporting
Providing an enterprise-level assessment of model risk
Tracking the status of individual model risk findings and approving mitigation/remediation plans
Project - Model Validation:
The summer associate will complete an end-to-end validation of one of Navy Federal's predictive models. This validation would include analyzing the model's data, conceptual soundness, key assumptions, limitations, estimation, calibration, and implementation as appropriate. The validation may also include developing a challenger model against the original model design. At the conclusion of the validation, the summer associate will have identified a list of model risk findings that will be presented to the Model Owner for remediation. The selected model for this project may be within a variety of possible subject domains, such as fraud detection, targeted marketing, underwriting, financial forecasting, and more.
Project Steps:
Review model documentation and meet with business owners as needed to gain an understanding of the model
Conduct a complete independent model validation, which may include, but is not limited to, assessments of the following:
Model theoretical framework, fitting methods, assumptions
Data creation process, including data preparation and data quality
Model specification
Model development and performance testing, which may include in-sample, out-of-sample, out-of-time back testing, sensitivity testing, stress testing, and performance monitoring results
Ongoing monitoring plan, including proposed or existing ongoing monitoring metrics and thresholds
Appropriateness of the implementation testing plan scope in context of associated model risk, testing metrics, and user acceptance testing (UAT)
Code and calculations associated with development/estimation and/or implementation
Model documentation including completeness, accuracy, level of details
Document and quantify the materiality of each finding
Develop recommendations for model developers to mitigate the risks identified
The Summer Associate Program is a 12-week internship program beginning in May 2024 and ending in August 2024. Students will work on impactful projects and meaningful work during their internship. To qualify for this position, applicants must be currently pursuing a degree from an accredited college or university and have an anticipated graduation date of December 2024 or later.
Responsibilities
Leverage technologies - including Python and R - to analyze and gain insights within large data sets
Evaluate model design and performance and perform champion/challenger development. Analyze model input data, assumptions, and overall methodology.
Using statistical practices, analyze current and historical data to make predictions, and identify risks, and opportunities, enabling better decisions on planned/future events
Provide analytics insights and solutions to solve complex business problems
Examine data from multiple sources and share insights with leadership and stakeholders
Transform data presented in models, charts, and tables into a format that is useful to the business and aids in effective decision-making
Develop and maintain an understanding of relevant industry standards, best practices, business processes, and technology used in modeling and within the financial services industry
Assess the model's overall fit/suitability with its intended use and purpose
Provide subject matter expertise to identify models' key assumptions, limitations, and weaknesses, and recommend practical solutions to mitigate model risk
Prepare and present clear, thorough reports to model developers and model owners explaining the analysis performed, the results of the analysis, and recommendations for improvement
Qualifications
Pursuing master's degree in Data Science, Statistics, Mathematics, Computer Science, Engineering or another quantitative field, or related field
Ability to understand complex business problems
Skill in communicating actionable insights using data to technical and non-technical audiences
Skill in descriptive, predictive, and prescriptive analytics and modeling
Experience in using classification models to solve business problems
Demonstrates an understanding of the modeling lifecycle
Skill in data mining, data wrangling, and data transformation
Skill interpreting, extrapolating, and interpolating data for statistical research and modeling
Skill in Python or R
Skill in SQL and querying (able to pull/transform your own data)
Hours: Monday - Friday 8:00AM - 4:30PM
Location: Remote | 820 Follin Lane, Vienna, VA 22180
About Us
You have goals, dreams, hobbies, and things you're passionate about-what's important to you is important to us. We're looking for people who not only want to do meaningful, challenging work, keep their skills sharp and move ahead, but who also take time for the things that matter to them-friends, family, and passions. And we're looking for team members who are passionate about our mission-making a difference in military members' and their families' lives. Together, we can make it happen. Don't take our word for it:
- Military Times 2022 Best for Vets Employers
- WayUp Top 100 Internship Programs
- ForbesR 2022 The Best Employers for New Grads
- Fortune Best Workplaces for Women
- Fortune 100 Best Companies to Work ForR
- ComputerworldR Best Places to Work in IT
- Ripplematch Campus Forward Award - Excellence in Early Career Hiring
- Fortune Best Place to Work for Financial and Insurance Services
Equal Employment Opportunity: Navy Federal values, celebrates, and enacts diversity in the workplace. Navy Federal takes affirmative action to employ and advance in employment qualified individuals with disabilities, disabled veterans, Armed Forces service medal veterans, recently separated veterans, and other protected veterans. EOE/AA/M/F/Veteran/Disability EOE/AA/M/F/Veteran/Disability
Disclaimers: Navy Federal reserves the right to fill this role at a higher/lower grade level based on business need. An assessment may be required to compete for this position. Job postings are subject to close early or extend out longer than the anticipated closing date at the hiring team's discretion based on qualified applicant volume. Navy Federal Credit Union assesses market data to establish salary ranges that enable us to remain competitive. You are paid within the salary range, based on your experience, location and market position
Bank Secrecy Act: Remains cognizant of and adheres to Navy Federal policies and procedures, and regulations pertaining to the Bank Secrecy Act.
REQNUMBER: 14072
