Model Risk Audit Manager

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., JRI America, Inc., SMBC Leasing and Finance, Inc., Banco Sumitomo Mitsui Brasileiro S.A., and Sumitomo Mitsui Finance and Leasing Co., Ltd.

Role Description

We are seeking an experienced audit professional to serve primarily as Auditor-in-Charge (AIC) for Third Line of Defense (3LOD) audits covering models and model risk management. The VP will lead audit engagements from inception through completion and partner with business and risk stakeholders to assess and promote effective governance, risk management, and internal controls related to model risk management across SMBC Americas Division.

The role is responsible for the day-to-day leadership, execution, quality, and timely completion of assigned audit engagements, including planning, risk assessment, testing, workpaper review, issue identification, stakeholder communication, and audit reporting.

Role Objectives: Delivery

- Serve as AIC for model and model risk management audits, directing and supervising engagements from inception through completion, including planning, risk assessment, audit scope and program development, testing, issue identification, workpaper review, reporting, and engagement closure.

- Develop and execute a risk-based audit approach that considers applicable model risks, regulatory requirements, prior audit and regulatory issues, changes in business activities and the control environment, and emerging risks.

- Coordinate and oversee the work of audit team members, including assigning responsibilities, establishing milestones, monitoring progress, reviewing work performed, addressing execution challenges, and escalating significant matters to audit management as appropriate.

- Review audit workpapers to determine whether testing is appropriately designed and executed, evidence is sufficient and reliable, results are clearly documented, and audit conclusions are adequately supported.

- Identify and assess control deficiencies, including evaluating root cause, risk impact, severity, and potential broader implications. Ensure audit issues are clear, factually accurate, well-supported, and appropriately risk-rated.

- Draft and review high-quality audit reports that clearly communicate the audit scope, overall assessment, key control themes, identified issues, risk implications, and recommended corrective actions.

- Track and perform or oversee the independent validation of remediation and closure of issues identified by Internal Audit and regulators, including assessing whether corrective actions adequately and sustainably address the underlying control deficiencies.

- Participate in quarterly and annual continuous monitoring and risk assessment activities to identify emerging risks, regulatory and business developments, control environment changes, and changes in the business risk profile.

- As needed, support the delivery and execution of IAD's broader audit plan and assurance responsibilities, including ad hoc reviews, regulatory response activities, special projects, and departmental strategic initiatives.

Role Objectives: Interpersonal

- Effectively communicate with business stakeholders and senior audit management throughout the audit lifecycle, clearly articulating audit strategy and scope, engagement status, testing results, identified control gaps, and required corrective actions.

- Lead discussions with stakeholders regarding audit observations and issues, exercising sound professional judgment and constructive challenge while maintaining Internal Audit independence and appropriate professional skepticism.

- Develop, promote, and maintain strong and collaborative working relationships with business and functional leadership, Model Risk Management, external auditors, regulators, and other relevant assurance functions.

- Provide direction, coaching, and timely feedback to audit team members, including junior auditors and co-sourced internal audit professionals, to promote high-quality execution, sound audit judgment, and consistent application of IAD methodology.

- Effectively manage differing perspectives and challenging discussions with stakeholders, escalating significant matters to senior audit management as appropriate while facilitating timely resolution of audit matters.

- Collaborate with regional and global audit colleagues, as appropriate, to promote consistency of audit coverage, risk assessment, methodology, and identification of potentially broader or cross-regional model risk themes.

Role Objectives: Expertise

- Demonstrate strong knowledge of model risk management principles and controls, including model governance, development, validation, implementation and use, ongoing monitoring, change management, model inventory management, and issue remediation.

- Demonstrate strong knowledge in one or more key model-risk areas, including market risk and capital markets pricing models; credit risk models; financial crime, fraud, and corporate compliance models; capital stress testing and loss reserving models; Generative AI (GenAI) and AI/ML modeling technologies; or other advanced quantitative models used by financial institutions.

- Maintain working knowledge of banking and capital markets products, associated risks, and the application and use of models within financial institutions.

- Apply a strong understanding of applicable regulatory requirements and supervisory guidance governing model risk management, including SR 26-2, as applicable.

- Apply a strong understanding of internal audit methodologies and techniques, internal control and risk management frameworks, risk assessment practices, audit issue development, and workpaper and documentation standards.

- Exercise sound and independent judgment in analyzing complex quantitative and control matters, assessing the significance of identified weaknesses, and developing clear and evidence-based audit conclusions.

- Maintain awareness of emerging developments in model risk management, quantitative methodologies, regulatory expectations, and evolving model technologies and their implications for the audit risk assessment and audit approach.

- Contribute subject-matter expertise to the development and enhancement of Model Audit methodologies, audit programs, testing approaches, continuous monitoring, and risk assessment activities.

Qualifications and Skills

- Minimum of 5–7 years of relevant experience in the banking, financial services, regulatory, or consulting industry, preferably in Second Line of Defense (2LOD) and/or Third Line of Defense (3LOD) roles involving model risk management, model validation, quantitative risk management, or model audit.

- At least two years of hands-on audit experience, with demonstrated familiarity with audit techniques, risk and control assessment, internal controls, workpaper standards, issue development, and audit reporting.

- Demonstrated experience leading audits, model validations, risk assessments, or comparable assurance engagements from planning through completion.

- Strong analytical and problem-solving skills with the ability to evaluate complex information, exercise independent judgment, identify control weaknesses, and develop well-supported conclusions.

- Demonstrated ability to manage multiple priorities, coordinate audit resources, address execution challenges, and deliver high-quality work within established timelines.

- Excellent written and verbal communication, presentation, and interpersonal skills, including the ability to communicate complex technical, quantitative, risk, and audit matters effectively with stakeholders at various levels of the organization.

- Strong leadership and team-management capabilities, including the ability to direct work, review audit deliverables, provide constructive feedback, and coach and develop junior team members.

- Advanced degree (master's or Ph.D.) in Finance, Mathematics, Statistics, Economics, Engineering, Computer Science, or another quantitative discipline.

- Relevant professional certifications, such as CIA, CPA, CFA, FRM, or PRM, are preferred.

Additional Requirements

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.

SMBC provides reasonable accommodations during candidacy for applicants with disabilities consistent with applicable federal, state, and local law. If you need a reasonable accommodation during the application process, please let us know at [email protected].