Your Opportunity
Charles Schwab Internal Audit Department provides independent and objective assurance crafted to make valuable contributions and improve the operations of Schwab for all partners. Internal Audit assists Schwab to accomplish its objectives by using a detailed, focused approach to understand, evaluate, test and improve the effectiveness of business processes across the organization. Additionally, we evaluate the effectiveness of risk management, control and governance processes.
Internal Audit leadership is responsible for overseeing the execution of internal audits, identifying and implementing process improvements, monitoring vendor performance, and periodically report to governance committees, federal regulators and the Audit Committee. The Internal Audit Department is exposed to and communicates with all areas of the company.
The Corporate Internal Audit team is seeking a Manager, Internal Audit, Risk Analytics/Modeling. The Corporate team is responsible for execution of audits over the firm's corporate and risk management functions including model risk. We are hiring a quantitative senior specialist to perform testing as part of audit reviews of model development, governance and validation controls.
This individual will contribute to the Corporate Internal Audit team. The candidate will need strong quantitative acuity and developing understanding of how financial models are used in business contexts. The role includes performing testing as part of audit reviews of various model types including:
Capital Stress Testing (CST) Fraud Anti-Money Laundering (AML) Machine Learning Credit risk Interest Rate risk Margin risk Investment risk Business Intelligence/Marketing
Job Responsibilities
Performing audit reviews of model development and validation following guidelines based on SR 11-7 Guidance on Model Risk Management, to include an assessment of model usage, documentation, conceptual soundness, data integrity, the control environment, and the software environment.
Communicating work through formal audit reports and issues as well as through presentations to model owners, Model Risk Oversight (MRO) along with senior management.
Working effectively as a team member with other quantitative analysts in Audit and at the company.
Evaluating model performance monitoring reports, and conducting reviews of model annual reviews.
Developing partnership with IAD business team, MRO, and model stakeholders, and summarizing findings to senior leadership and non-technical partners.
Assist with the Model Centers of Excellence (COE) and subject matter experts including developing and supporting Model/Technical trainings to broader IAD (Senior Manager, Internal Audit).
Provide onboarding and ongoing support to new model team members.
Perform initial reviews of model workpapers from a quantitative perspective to ensure effective challenge within model testing papers.
From an audit execution perspective:
Direct and supervise the design and execution of internal audits on models, ensuring work is performed in accordance with IAD methodology.
Participation on an audit team may include internal or co-sourced internal audit professionals.
Lead meetings with partners.
Ensure coordination with integrated and data analytic audit teams.
Prepare and/or review work papers to ensure clear identification of risks and issues, validating appropriateness of fieldwork testing, and sign-off on audit deliverables.
Handle and advance changes in audit timelines, budget, resourcing, and achievements.
Assess the quality of management's Risk & Control Self-Assessments.
Work with capital, interest rate, liquidity and model related audit areas.
Issues Identification:
Based on the results of audit testing, identify and draft observations for review.
Review draft issue observations, vet issues with key partners, identify compensating controls, and evaluate the appropriateness of the management action plan prior to finalizing the audit report.
Issue Management and Validation:
Monitor and review issue validation testing to ensure comprehensive testing and adherence to SLAs.
Business and Project Monitoring:
Participate in the department's business and project monitoring program execution to identify emerging risks.
Risk Assessment:
Participate in the annual Risk Assessment process, including the scoring and documentation of risk ratings.
Review audit universe updates after the completion of each audit.
Coaching:
Provide support, mentoring, and feedback to the audit team throughout the audit.
Provide assistance with onboarding and ongoing support to new team members.
This will be an individual contributor role.
Required Skills and Qualifications
Advanced degree in a quantitative field (economics, statistics, finance, mathematics, physics)
2-3 years of work experience in quantitative modelling
Advanced skill with one or more analytical tools, such as SAS, R, Python, or MATLAB
Strong oral and written communication skills
Excellent people skills
Clear understanding of methodology and regulatory expectations in the execution of audit work, issue validation, MRA validation, and the response to regulatory inquiries.
Preferred Skills and Qualifications
Solid understanding of financial predictive modeling fields, such as consumer behavioral modeling, time series forecasting, dynamic equilibrium models, optimization theory, panel data analysis, and decision science
Experience with Non-Maturity Deposit Models, market risk analysis, and interest rate risk analysis
Detailed knowledge of model governance processes and regulatory requirements for large US banks
CFA and or FRM certification