Risk Modeller

Risk Modeller

Risk Modelling is the development of mathematical models and scenario tests using sophisticated computer programs to analyze and predict risk impacts affecting an organization. Risk Modellers are highly technical experts in the area of risk measurement.

ROLE-AT-A-GLANCE
Binoculars
Demand Outlook
*

Due to increased complexity of investment products and risk associated with credit, market and operational factors

Diploma
Education & Credentials
*

Graduate Degree Required

Data chart
Quantitative Skills Required
*
Group of people
Interpersonal Skills & Relationship Management
*
Multiple devices Specialized Technology Skills
*
Desktop area Work Environment

Office; Standard business hours

ROLE-AT-A-GLANCE
Binoculars
Demand Outlook
*

Due to increased complexity of investment products and risk associated with credit, market and operational factors

Diploma
Education & Credentials
*

Graduate Degree Required

Data chart
Quantitative Skills Required
*
Group of people
Interpersonal Skills & Relationship Management
*
Multiple devices Specialized Technology Skills *
Desktop area Work Environment

Office; Standard business hours


WHAT IT IS

Key Role Dimensions

High-level quantitative, technical and analytical skills: Strong quantitative skills and knowledge of statistical software are required to create appropriate models that help organizations make decisions about credit and market risk.

Creating competitive advantage for organizations through risk assessment: The complex numerical analysis produced by Risk Modellers can provide organizations with leading-edge insight into market trends; when applied to portfolio management or investment decisions, this can differentiate one organization from another in the market.

Focus Areas

Risk Modellers work in:

  • Banking: Use models to automate many credit risk decisions for lenders.
  • Insurance: Use models to assess and manage market risk impacts on the organization’s investment portfolio.
  • Investment Management: Use models to assess and manage a portfolio’s risk exposure versus return.
  • Pension Fund Management: Use models to determine appropriate asset mix/allocation and optimal time horizons of investments.

WHAT IT TAKES TO SUCCEED

Key Job Accountabilities

Risk Modellers generally:

Build and run risk models:

  • Work closely with business line leaders to understand and define requirements for risk models.
  • Review research to understand market and credit trends to inform models.
  • Build risk models based on data gathered from business line leaders and external research.
  • Report on model assumptions, methodology and outputs.

 Stress test models to see if they are producing the results they should:

  • Run tests to ensure quality data outputs.
  • Assess the need for adjustments and quality improvements to the models based on results.

Knowledge, Skills & Experience

Must-haves:

  • Ability to develop risk models using various modelling techniques, database architecture and design, and financial analysis
  • Ability to quickly understand changing market trends and incorporate information into model inputs
  • Ability to translate complex data outputs into clear and understandable insights for business users
  • Strong knowledge of risk and credit management in the financial sector
  • Strong knowledge of statistical and quantitative theories and their applications
  • Advanced database architecture and design
  • Advanced Information and Communication Technology (ICT) – programming and design
  • Expertise in statistical analysis and modelling
  • Demonstrated capabilities in data interpretation, sense-making and communication
  • Proven adaptability and mental flexibility

 Nice-to-haves:

  • Previous experience in corporate finance

Education & Credentials

Entry-level positions typically require:

  • Undergraduate university degree
  • Graduate degree

In the fields of:

  • Mathematics
  • Physics
  • Engineering
  • Finance
  • Computer Science

Senior positions will require:

  • Graduate degree
  • Post-doctorate

In the fields of:

  • Economics
  • Statistics
  • Business Administration

 Employers may require candidates to possess one or more of the following designations:

Programs Offered

Centennial College

CFA® (Chartered Financial Analyst®) Institute

Fanshawe College

McMaster University

Sprott School of Business

University of Ontario Institute of Technology (UOIT)


WHERE IT CAN TAKE YOU

Career Pathways

There are a number of pathways open to Risk Modellers through:

Deeper Specialization: As you gain experience you may find yourself working exclusively in certain areas of risk with increasing complexity of the risk models. Such positions might include Senior Modeller, Customer Analytics or Market Risk Analytics.

Increased Seniority: While many Risk Modellers stay in the role long-term, due to its highly technical nature, many organizations have a variety of leadership roles in risk management such as:

  • Senior Risk Manager
  • Director of Risk Policy
  • VP Risk Management
  • Chief Risk Officer

Future Trends & Impacts

There are several external factors and environmental trends that can influence the qualifications and demand for this role:

  • Technology: Technology changes the way data is captured, so Risk Modellers need to be able to continually adapt their approaches.
  • Complexity & Quantity of Data: Vast availability of information creates the need for Risk Modellers to become creative with their techniques.
  • Management Trends: The long-term trend towards fact-based management decision-making is supported by an increased focus on regulatory requirements and due diligence in decision-making.


Looking for personalized career matches?

Complete the Career Assessment tool and find your match to in-demand careers that Toronto employers are hiring for. Completely free!

Find your career match