Model Risk, Asset Liability Management (Risk Management) : Job Level - Associate at Morgan Stanley
Worldwide
$100k - $140k
Firm Risk Management Firm Risk Management (FRM) supports Morgan Stanley to achieve its business goals by partnering with business units across the Firm to realize efficient risk-adjusted returns, acting as a strategic advisor to the Board and protecting the Firm from exposure to losses as a result of credit, market, liquidity, operational, model and other risks. Background on the Position This role resides within Firm Risk Management's Model Risk Management (MRM) group, which is responsible for oversight of models and tools risk across the Firm. The position focuses specifically on models used by Treasury-including Interest Rate Risk in the Banking Book (IRRBB), liquidity and funding-related models, and other Treasury analytical tools. The role is suited for individuals with strong quantitative skills, attention to detail, and an interest in financial risk management, markets, and balance sheet dynamics. Primary Responsibilities Conduct independent review and validation of Treasury and IRRBB models and tools, including methodologies supporting Net Interest Income (NII). The responsibility will also include developing deep understanding of Economic Value of Equity (EVE), behavioral models, interest rate risk methods, prepayment/decay models, term structure methodologies, liquidity modeling tools, and other Treasury analytics. Review models supporting stress testing, ICAAP, and other internal/external exercises, ensuring conceptual soundness, appropriateness of assumptions, and robustness of implementation. Support development and execution of MRM independent testing frameworks in accordance with regulatory expectations Perform quantitative testing, including sensitivity analyses, benchmarking, backtesting, and performance monitoring. Stay current on regulatory guidance, market trends, and macro/micro themes relevant to Treasury model risks. Prepare clear and well structured validation reports for internal stakeholders (model developers, internal audit) and external regulators. Communicate validation results and methodological assessments effectively to internal audiences, including senior management. Firm Risk Management Master's degree in a quantitative or finance related discipline (e.g., Mathematical Finance, Statistics, Physics, Operations Research) preferred; Bachelor's degree with relevant experience considered. Strong statistical and quantitative skills - e.g., regression, time series, stochastic processes, Monte Carlo methods is preferred. Familiarity with financial risk modeling techniques and software like QRM, particularly those used in IRRBB, balance sheet management, and liquidity/treasury models. Programming proficiency in Python, SQL, or similar analytical tools. Prior experience developing or validating models related to IRRBB, Treasury, liquidity, or Asset Liability Management is a plus. Knowledge of regulatory expectations for model risk management (e.g., SR 11-7) is advantageous. Ability to work in a collaborative, dynamic environment with a mix of technical and market oriented tasks. Progress toward professional certifications such as CFA or FRM is beneficial. FRM is committed to creating and providing opportunities that enable our workforce to reflect diverse backgrounds and views WHAT YOU CAN EXPECT FROM MORGAN STANLEY: At Morgan Stanley, we raise, manage and allocate capital for our clients – helping them reach their goals. We do it in a way that’s differentiated – and we’ve done that for 90 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. To learn more about our offices across the globe, please copy and paste https://www.morganstanley.com/about-us/global-offices into your browser. Expected base pay rates for the role will be between $100,000 and $140,000 year at the commencement of employment. However, base pay if hired will be determined on an individualized basis and is only part of the total compensation package, which, depending on the position, may also include commission earnings, incentive compensation, discretionary bonuses, other short and long-term incentive packages, and other Morgan Stanley sponsored benefit programs. Morgan Stanley is an equal opportunity employer committed to building and maintaining a workforce that is diverse in experience and background. Our recruiting efforts reflect our strong commitment to a culture of inclusion, where individuals are hired, developed, and advanced based on their skills and talents. Our workforce reflects a broad cross-section of the global communities in which we operate, bringing a variety of backgrounds, talents, perspectives, and experiences. For more information, please visit: https://www.morganstanley.com/people-opportunities/eeo. At Morgan Stanley, we advise, originate, trade, manage and distribute capital for people, governments and institutions, always with a standard of excellence and guided by our core values. Morgan Stanley is dedicated to providing first-class service to our clients, in a way that reflects our commitment to creating a more sustainable future and fostering stronger communities around the world. In each line of business, we strive to demonstrate our belief in the power of transformative thinking, innovative strategies and leading-edge solutions—and in the ability of capital to work for the benefit of all society. What We Do
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