I am a PhD candidate in Economics and I want to start working in the risk modelling type of jobs. I currently;y can choose among 2 positions: risk modeler and model validator. which one would you recommend for a better career and from the effort/benefits ratio point of view?
Thanks for making this video - really appreciate it. A few questions come to mind: 1. How many models do you usually validate in a year? Are you concurrently working on multiple models? 2. What drives the number of model validator a bank needs? Is it their revenue, or the number of models, or...?
I'll consider it. The issue is the skills vary depending on your role and company. Being able to read and understand technical papers and textbooksv quickly is a real advantage.
Hey Dimitri, cheers for the detailed insight! I've had a question on my mind as of recently though: have you had any experience with Bayesian methods and probabilistic programming in finance? I'd love to hear your thoughts on this, as Bayesian methods appear to be quite powerful but just lack computational efficiency.
First comment ;) I am currently a Statistics major with Data Science minor and I enjoy basic python but don't like the programming that I do at work as a software engineer intern, what role would you suggest for me? I am leaning towards BI analyst as I am into finance and business domain in general. Are there other roles that could possibly fit my interest?
Hey dimitri, I love your videos, theyre very informative. Question though: im currently a finance student in a no name school. My goal is simply to be marketable going into my masters. Im working on landing an internship right now for about 6 months. Would you recommend a masters in finance vs MBA? Which is provides more utility in a broad sense. Next question is tied to first-> what does a masters in finance focus on vs an MBA? Is one discipline broad whereas the other is more focused? Which specialty serves best for banking/management. Not IB banking (i want a life)
You work 7 hours per day. Check your employee manual, it specifically says lunch hour is not included. You work 40 hours a week per contract, but you get away with 35 hours. 9 to 5 is the easiest to hide your 35hours/week. Try doing 7am to 3pm and your management would immediately realize you have been slacking off 1 hour per day
Lol, all I care is that the job gets done. We're salaries employees not hourly. I let my employees come and go whenever they want. I also don't track their lunches or hours.
@@DimitriBianco Yes, eventually that's right. I see people who is "on" all day and they do lousy work. I even saw somebody who installed programs that makes your mouse move on the screen just to look "on" in Skype
I am recently moving into the validation team in my research institute, this makes me excited for the process! I especially love your habit on reading up during slow days. Do you think Risk Model Validation - Christian Meyer & Peter Quell would be a good starting book for someone moving into validation?
I am a PhD candidate in Economics and I want to start working in the risk modelling type of jobs. I currently;y can choose among 2 positions: risk modeler and model validator. which one would you recommend for a better career and from the effort/benefits ratio point of view?
I really want to say thank you for the super deatiled-video introducing the daily work as a model validator! I do also wan to learn about the typical exit options as a MV. Are there any possibilities that a model validator can jump to the front office in order to gain more insights about the market and business?
For the banking side it is common to jump to Model Development which would be considered front line. Many validators actually start in Model Development and move to validation later on.
@@DimitriBianco Thank you so much for your reply! It really helps me a lot! I also do want to ask is it possible to transfer to other divisions in the banking such as the investment division, sales&trading or the asset management?
@@xxxfengjiawei from a modeling perspective yes. If you are trying to switch from say building trading models to working as an investment banker, the switch can be tough.
@@DimitriBianco I really want to say thank you so much for your informailn. Model validation is definitely a good job. But as a young-aged person, I still want to be exposed more in the front office. Thank you so much and hope that I could have the chance to move to the front office soon~😁
hey Dimitri, could you do a video showing what a high-quality model validator resume looks like? Not your resume, but a mock resume showing elements, layout, presentation, et cetera. For instance, how would the resume best demonstrate programming skills, work experience, education and certifications. Less important (but not inconsequential) topics: one page versus two pages, font/size/margins and so on. The resume books I browsed at the public library all have lame or uninformative examples.
I have an educational pathway sort of question. I'm transferring to uc berkeley studying data science undergrad and wanting to pursue MFE after. Is this a good path for a potential Quant?
As a model validator, I can say this is exactly what we do, atleast on the credit side. Great video!!
Will you be able to share few details on this?
Hey Saurabh,
Is it possible that you can share the generic validation documentation pdf with us?
I'm a validator in Model Risk Management, and I approve this message.
I am a PhD candidate in Economics and I want to start working in the risk modelling type of jobs. I currently;y can choose among 2 positions: risk modeler and model validator. which one would you recommend for a better career and from the effort/benefits ratio point of view?
Again, commented on ur video. U sir are a blessing!
Thanks for making this video - really appreciate it. A few questions come to mind:
1. How many models do you usually validate in a year? Are you concurrently working on multiple models?
2. What drives the number of model validator a bank needs? Is it their revenue, or the number of models, or...?
Thanks for the super detailed video. Can you do a complete video on technical skills ? :D
I'll consider it. The issue is the skills vary depending on your role and company. Being able to read and understand technical papers and textbooksv quickly is a real advantage.
Hey Dimitri, cheers for the detailed insight!
I've had a question on my mind as of recently though: have you had any experience with Bayesian methods and probabilistic programming in finance? I'd love to hear your thoughts on this, as Bayesian methods appear to be quite powerful but just lack computational efficiency.
First comment ;)
I am currently a Statistics major with Data Science minor and I enjoy basic python but don't like the programming that I do at work as a software engineer intern, what role would you suggest for me? I am leaning towards BI analyst as I am into finance and business domain in general. Are there other roles that could possibly fit my interest?
Data engineer maybe
Hey dimitri, I love your videos, theyre very informative. Question though: im currently a finance student in a no name school. My goal is simply to be marketable going into my masters. Im working on landing an internship right now for about 6 months. Would you recommend a masters in finance vs MBA? Which is provides more utility in a broad sense. Next question is tied to first-> what does a masters in finance focus on vs an MBA? Is one discipline broad whereas the other is more focused? Which specialty serves best for banking/management. Not IB banking (i want a life)
There’s a video about this. Check it out!! Look it on his playlist
You work 7 hours per day. Check your employee manual, it specifically says lunch hour is not included. You work 40 hours a week per contract, but you get away with 35 hours. 9 to 5 is the easiest to hide your 35hours/week. Try doing 7am to 3pm and your management would immediately realize you have been slacking off 1 hour per day
Lol, all I care is that the job gets done. We're salaries employees not hourly. I let my employees come and go whenever they want. I also don't track their lunches or hours.
@@DimitriBianco Yes, eventually that's right. I see people who is "on" all day and they do lousy work. I even saw somebody who installed programs that makes your mouse move on the screen just to look "on" in Skype
Hey Dimitri, Can I get the generic validation document, it will be helpful for referencing.
Chapeau!
I am recently moving into the validation team in my research institute, this makes me excited for the process! I especially love your habit on reading up during slow days. Do you think Risk Model Validation - Christian Meyer & Peter Quell would be a good starting book for someone moving into validation?
3 more steps after validation of development code (validation of output, validation of implementation testing, ongoing performance monitoring)
Thanks for the super detailed video. Can you do a complete video on technical skills ? :D
Amazing video!
Hi Dimitri
Big fan of your videos. Can you please make a video on PD, LGD & EAD for credit risk?
Thanks
I'll consider this however it would take a lot of time to create such videos. Credit risk could actually be an entire TH-cam channel.
I am a PhD candidate in Economics and I want to start working in the risk modelling type of jobs. I currently;y can choose among 2 positions: risk modeler and model validator. which one would you recommend for a better career and from the effort/benefits ratio point of view?
I really want to say thank you for the super deatiled-video introducing the daily work as a model validator!
I do also wan to learn about the typical exit options as a MV. Are there any possibilities that a model validator can jump to the front office in order to gain more insights about the market and business?
For the banking side it is common to jump to Model Development which would be considered front line. Many validators actually start in Model Development and move to validation later on.
@@DimitriBianco Thank you so much for your reply! It really helps me a lot! I also do want to ask is it possible to transfer to other divisions in the banking such as the investment division, sales&trading or the asset management?
@@xxxfengjiawei from a modeling perspective yes. If you are trying to switch from say building trading models to working as an investment banker, the switch can be tough.
@@DimitriBianco I really want to say thank you so much for your informailn. Model validation is definitely a good job. But as a young-aged person, I still want to be exposed more in the front office. Thank you so much and hope that I could have the chance to move to the front office soon~😁
hey Dimitri, could you do a video showing what a high-quality model validator resume looks like? Not your resume, but a mock resume showing elements, layout, presentation, et cetera. For instance, how would the resume best demonstrate programming skills, work experience, education and certifications. Less important (but not inconsequential) topics: one page versus two pages, font/size/margins and so on. The resume books I browsed at the public library all have lame or uninformative examples.
I'm actually working on a book about quant finance job hunting. If you contact me on LinkedIn I can send you a mock resume to look at.
I have an educational pathway sort of question. I'm transferring to uc berkeley studying data science undergrad and wanting to pursue MFE after. Is this a good path for a potential Quant?
It can be a good path as long as you get enough math and statistics.
Great video sir, i have a question.
Cab you change career then from model verification to developer in the same bank and is that hard?
Yes. I've worked on both sides and have had offers to move internally.