What the role owns
Model validation, performance and drift monitoring, and the risk register entries that come out of both.
Who it reports to
A head of model risk, usually inside a second line of defense.
A day in the job
Validating a model somebody else built, testing it against the cases its author did not consider, monitoring drift, and writing findings that survive challenge.
What employers test for
Statistics, model validation technique, and the independence to write an unwelcome finding. SR 11-7 in banking.
How people get in
Quantitative analysts, model validators and internal auditors. The move from building models to testing them is common and well paid.
What it gets confused with
Not the model's author. Independence from the build team is the entire point of the job.
AI Risk or Model Risk Analyst: tools, skills and workflows
What does an ai risk or model risk analyst do all day?
Validating a model somebody else built, testing it against the cases its author did not consider, monitoring drift, and writing findings that survive challenge.
What skills do employers test for?
Statistics, model validation technique, and the independence to write an unwelcome finding. SR 11-7 in banking.
How do people get into this role?
Quantitative analysts, model validators and internal auditors. The move from building models to testing them is common and well paid.
What is it often confused with?
Not the model's author. Independence from the build team is the entire point of the job.