Model risk specialist vs. Valuation risk specialist

Water Cooler Careers
#1

Hi guys,
I have recently received 2 jobs offer and do not know which possition is better(compensation is at pretty the same level):

  1. Model risk specialist - responsible for identifying and evaluating model risk and propose controls to manage that risk.
  2. Valuation risk specialist - responsible for oversight of profit testing of FX products and the price testing of exotic products,prudent valuation methodologies development.

Both positions based on the description seem to be interesting. What do you think which job offer gives better prospects / exit-ops?
Thanks in advance for your advice

#2

I don’t have direct experience with either. I’d guess #1 has broader applicability - models are used in lots of places and industries. #2 sounds more back office-y to me. But that’s just my guess.

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#3

they’re both middle office risk management.
Agreed with raw raw that 1) seems to have broader application.
2) is specifically restricted to FX and “exotic products.” If they’re continually creating new bespoke products, that might be the more interesting job because I can see with 1) you’re doing the same thing every day,
2) sounds like “model validation,” someone else decides which model to use to price the products and codes the model up. Your job is to test those models against market prices.

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#4

Thank you for your posts.
I would like to add that in case of 1st job position it only involves credit risk models

#5

Hi guys, any other advices?

#6

What I figured out about these 2 positions:

  1. It’s more project work. There are many people with PhD from Maths/Physics etc.
    On this position I will need to work with code.
    Moreover I will be specialist at the VP level
  2. It’s more process-type work. There are rather people with finance background.
    Not sure how much I will use programming skills.
    I will be a team leader at the AVP level but in the BB bank (so better than in the first position)
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#7

If you are young, I’d go with learning code and working with math guys all day. 1 still seems more valuable in terms of NPV. But this is just my gut

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#8

I’m 30-year old Sir :slight_smile:
Yes honestly I think 1st option gives me better prospects & I will learn considerably more.
Nevertheless in case of 2nd option I will have direct reports (so managerial experience) which might be also great asset in case of exit-opps

#9

Do you want to be a manager or more of a coder/quant?

I’m your age as well. I’d do #1, but I am more interested in getting highly valuable skills before ever trying to be a manager (not very interesting to me)

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#10

Well, I want to have well-paid job and do not afraid that in 5 years time I will be unemployed :wink:
I do not need to be manager at all but probably at same stage you need managing people in ordet to get decent salary

#11

Hi
Any other advice?