Business Analyst-Model Risk

Company Profile

Morgan Stanley is a global financial services firm and a market leader in investment banking, securities, investment management and wealth management services. With offices in more than 43 countries, the Morgan Stanley team provides clients with the finest thinking, products and services to help them achieve even the most challenging goals. As a market leader, the talent and passion of our people is critical to our success.

We embrace integrity, excellence, teamwork and giving back.

Professionals within the Legal and Compliance Division (LCD) provide a wide range of services to our business units. They may help structure a complex and sensitive cross‑border transaction, advise on a new product introduction, develop a training program or defuse an investor dispute. The team preserves the firm’s reputation for integrity and protects it from sanctions with policies and procedures that meet regulatory requirements worldwide, while maintaining cooperative relationships with governmental policymakers and regulatory agencies.

Within LCD, the Non‑Financial Risk (NFR) Department serves as the second line of defense for the firm’s non‑financial risks, including financial crimes, market manipulation or abuse, and operational risk. The NFR Data & Analytics function designs and optimizes surveillance models, approaches and tools using advanced analytical techniques such as supervised and unsupervised machine learning and graph analytics. These tools help identify suspicious or illegal behaviours such as money laundering, market manipulation, insider trading, unfair sales or trading practices and other financial crimes.

• Model Documentation/Monitoring & Oversight:
  • Draft comprehensive documentation on model design within LCD.
  • Establish ongoing monitoring controls, collaborating with quantitative analysts and subject‑matter experts to develop or enhance models.
  • Assist in the tuning and optimization of FCC models (Trade Surveillances, Transaction Monitoring, Sanctions screening), including machine learning or AI solutions.
  • Support developers and vendors in thorough testing of models, including designing challenger models or compensating controls to ensure optimal performance.
  • Maintain existing LCD models through qualitative analyses related to ongoing monitoring, periodic assessments, above‑the‑line and below‑the‑line testing, and tuning.
  • Conduct internal and external research on new modelling trends, perform gap analysis, propose solutions, and assist stakeholders in implementation.
  • Perform root‑cause analyses for potential anomalies detected in model performance.
  • Document or oversee documentation of analyses, recommendations, and rationales for each activity related to the models.
• Model Governance and Reporting:
  • Manage and maintain the model risk governance framework for FCC models, ensuring adherence to internal Model Risk Management policies and regulatory standards.
  • Assist in the preparation of periodic and ad‑hoc metrics reports for senior management, evaluating and enhancing existing metrics and supporting processes.
  • Track and report model changes and results of tuning/optimization activities to LCD advisory heads, the Model Risk Management, and the Internal Audit groups.
  • Liaise with the MRM Group, Internal Audit Department, regulatory bodies and other stakeholders during reviews, validations, and exams to fulfill relevant requirements.

• Bachelor’s degree in business, economics, finance, MIS, management, risk management or related field from a top‑tier university.
• At least 4 years of relevant experience, preferably in Financial Crime Compliance, Model Risk Management, Risk Control or related domains within financial services.
• Good understanding of AML, Sanctions and/or Trade Surveillance models.
• Excellent communication and presentation skills with the ability to convey complex technical concepts to non‑technical stakeholders.
• Strong analytical thinking, critical reasoning, and the ability to be self‑motivated and work independently.

• Understanding of Fed SR 11‑7/OCC Bulletin 2011‑12 on Model Risk Management or related domains.
• Curiosity…