Vice President of Stress Testing & Emerging Events Scenario Design

Vice President of Stress Testing & Emerging Events Scenario Design

Vice President of Stress Testing & Emerging Events Scenario Design

Apply locations Chicago, IL, USA time type Full time posted on Posted 5 Days Ago job requisition id R250000922

Application Deadline : 03 / 28 / 2025

Address : 320 S Canal Street

Job Family Group : Audit, Risk & Compliance

Capital stress testing based on comprehensive stress test scenarios that stress the material risks and overall specific vulnerabilities of a firm’s risk profile and operations is a critical foundational element of BMO’s Risk Management Framework to ensure sufficient capital adequacy is maintained during periods of stress. Additionally, due to the increasing complexity of the emerging events / risks facing firms, development and use of “what-if” emerging risk scenarios to inform the assessments and understanding of emerging risks is a valuable evolving practice that BMO is successfully utilizing. These processes are in the early stages of an optimized target state transformation to maximize their efficiency, consistency and overall value.

As the Vice President of Stress Testing & Emerging Events Scenario Design, you will have the privilege of leading the enterprise-wide stress test (EWST), US stress test (CCAR) and emerging events scenario design processes. You will be a key member of a highly dedicated team leading the valuable target state transformation and managing the resulting optimized business-as-usual (“BAU”) scenario design target state by delivering structured, disciplined, diligent and thoughtful leadership and support, which includes, but is not limited to, the following :

• Develop and implement a target state stress testing and emerging events scenario design process, which includes among many other improvements : 1) Fully integrate EWST, CCAR and emerging events scenario design processes to drive efficiency, consistency and effectiveness; 2) Fully integrate with Risk Identification and material risk to understand risk stressed and not stressed; 3) Build a single golden source library of stress and emerging events scenarios; 4) Support the incorporation of Artificial Intelligence / Machine Learning into the development of scenario narratives, variable forecasts and early-warning indicator dashboards; 5) Support the evolution to a quarterly enterprise level stress test process.
• Lead the end-to-end EWST and CCAR capital stress testing design processes to satisfy annual and mid-year stress testing exercises, which includes among others : 1) Conducting research on a range of possible stress scenarios; 2) Preparing scenario narratives; 3) Forecasting economic and financial variable time series under these hypothetical stress scenarios; 4) Running sensitivity analysis on key variables and other scenario inputs; 5) Systematically mapping stress scenarios to material risks; 6) Selecting certain emerging risks to include in scenarios; 7) Executing governance including review, challenge and approval of scenarios; 8) Ultimately, delivering and maintaining a suite of BAU stress scenarios that will continually evolve and can be efficiently run on a quarterly basis.
• Lead the monthly emerging events scenario design process, which includes among others : 1) Reviewing existing emerging events and related scenarios to determine need to update / refresh based on changing dynamics of the drivers to the emerging events; 2) Reviewing new proposed emerging events and determining whether a new scenario needs to be developed or can sensitivity analysis be run on existing stress scenarios to provide sufficient assessment insight; 3) Ultimately, delivering and maintaining a suite of BAU emerging events scenarios that will continually evolve and can be efficiently run on a monthly basis.
• Lead the development of highly insightful early warning indicator (EWI) dashboards to monitor market, business and emerging risk conditions on a daily basis, which includes incorporating AI / machine learning to forecast EWIs so they are forward-looking.
• Develop and maintain strong relationships with 1st and 2nd LoD partners to collaborate on delivering the above mentioned objectives. These partners include, but are not limited to the following : EWST & CCAR Stress Testing, Economics, Model Risk & Development, Credit Risk, Market Risk, Liquidity & Funding Risk, Non-Financial Risk, Strategic Risk, Reputation Risk, Environmental & Social Risk, Finance, and business lines.

Qualifications :

Salary : $100,000.00 - $185,500.00

Pay Type : Salaried

The above represents BMO Financial Group’s pay range and type. Salaries will vary based on factors such as location, skills, experience, education, and qualifications for the role, and may include a commission structure. Salaries for part-time roles will be pro-rated based on number of hours regularly worked. For commission roles, the salary listed above represents BMO Financial Group’s expected target for the first year in this position.

BMO Financial Group’s total compensation package will vary based on the pay type of the position and may include performance-based incentives, discretionary bonuses, as well as other perks and rewards. BMO also offers health insurance, tuition reimbursement, accident and life insurance, and retirement savings plans.

About Us :

At BMO we are driven by a shared Purpose : Boldly Grow the Good in business and life. It calls on us to create lasting, positive change for our customers, our communities and our people

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Salary : $100,000 - $185,500