Standing out as a model validation quant

Sleepsalot

New Member
Hi all, I just recently joined a leading firm as a model validation quant. I reviewed a couple of models, and came out with long, involved derivations of model risks and errors, quantified stuff with business impact numbers. However, nobody even looked at them, or didn't care about them.
It seems like validation teams are set up to get the regulators off their ass. Nobody really cares if you did really technical stuff. Its just stored away in a doc so that the regulator is happy.
This doesn't seem like a way to stand out, and has gotten me doubting whether model validation is a good option at all. Is there a way to stand out in such a setting? If not, where do I get out?
 

IntoDarkness

Active Member
its not a good option and you should get out as soon as you are able to get into business side
 

Andres Gonzalez

New Member
Model validation is perceived as a cost and not a value add unfortunately. Don't waste your time making more than what your mandatory standards require.

I'd try to exit to other positions. Internally you can have a conversation with the model owners to see if there are openings, show them your thoughtful feedback in a friendly not formal fashion, not lilke "Here are 10 ways to do it better".

Summarized. Don't impress your MV boss, no one cares. Make contacts on model owners who might take you to the other side.
 
Make contacts on model owners who might take you to the other side.
Yup. This is what I'd do if I still were in model val. Such as when you get into a phone call with the model developers, that's your chance to impress them with your technical prowess and whatnot.
 
Last edited:
  • Like
Reactions: ZFL

IntoDarkness

Active Member
it can be difficult if say the modeling team is in new york but the validation team is in dallas
 
Top