Location
The position can be based in any of the following cities: USA Washington, DC.
We improve lives
IDB Invest is the private sector arm of the IDB Group and an international financial institution committed to addressing the development needs of Latin America and the Caribbean. Our mission is to support sustainable enterprises and projects that deliver financial results while maximizing social and environmental impact in the region.
IDB Invest operates in 26 countries, structured across four geographic regions and three industry verticals: Infrastructure and Energy, Financial Intermediaries, and Corporates.
In support of a new transformative business model โOriginate to Shareโ our shareholders recently approved a $3.5 billion capitalization. This will allow IDB Invest to significantly scale up its investments, nearly doubling annual financing from approximately $8 billion to $19 billion, and unlocking greater private sector participation to drive development and climate impact across the region.
About this position
The Financial and Operational Risk division is looking for a professional with financial model development and validation background, specifically in asset valuation and asset pricing models, to support IDB Invest management with the governance of model risk. The candidate is expected to be a knowledgeable, proactive, self-starter and actively contribute to the development of automated reports, models, processes, and controls related to the function.
The Financial and Operational Risk Management Division, part of the Risk Management Department, is responsible for managing financial and operational risks of IDB Invest. The team is divided into four main groups:
- Portfolio Management: responsible for overseeing the growth of the portfolio, considering concentrations and other risk parameters, providing portfolio risk guidance to the business areas, managing portfolio limits, RAROC, Economic Capital, Risk Management MIS, reporting and limit controls, and quarterly calculation of provisions under the CECL.
- Market Risk: responsible for the design, implementation, update, and ongoing execution of the Market Risk and Asset and Liability Management framework. The team identifies, quantifies and monitors interest rate risk and foreign exchange risk of the balance sheet, and the price risk of the liquid investment portfolio. This group is also responsible for counterparty credit risk management.
- Model Risk and Capital Adequacy: responsible for the internal economic capital models, rating agencies models and the model governance framework, including model validation.
- Operational Risk Management: responsible for assessing and maintaining an appropriate internal control environment, developing and managing a full operational risk framework as a second line of defense.
This position is to work in the Model Risk and Capital Adequacy team, reporting to its lead. The candidate will play a key role in developing and improving the teamโs risk management capabilities. The position will require combining risk management knowledge, experience with the building and the verification and challenge of financial models, coding skills, good understanding of IDB Investโs policies and limits, project management skills to interact with IT and excellent hands-on attitude to develop and improve reports and controls in Excel, Power Point, Power BI. The candidate is expected to have team spirit, proactivity, intellectual curiosity, adaptability, and strong desire to be part of the IDB Invest.
What youโll do
- Primarily on asset valuation models (private equities, debt securities) and under little supervision, you will execute the model validation/assessment program prepared by the team lead. This will include, but will not be limited to:
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- Collecting and assessing the quality of model documentation produced by model owners (Microsoft Word/PowerPoint and pdf presentations, spreadsheets, codes, etc.);
- Verifying the relevance and the quality of the model data and its sources;
- Evaluating the appropriateness of the modelโs conceptual soundness, assumptions or approach and its calibration;
- Replicating the modelโs results;
- Proposing and applying testing methods to verify the modelโs performance (e.g. model back-testing/benchmarking);
- Producing alternative approaches and benchmarks to challenge the model and its data;
- Identifying model gaps and issues, along with severity and remediation actions;
- Defending the validation findings in Working Group and higher level committees;
- Documenting the Model Validation Templates.
- Review quarterly valuations and proper utilization of models.
- Produce research on technical topics in the interest of the Teamโs goals and activities.
- Follow-up on the resolution of identified issues.
- Manage the relationship with model owners.
- Be a knowledge matter expert in the field of asset pricing and valuation.
- Execute model validation activities on other model types (e.g. market, credit, operational risk) on a need basis.
What you'll need
- Education: Masterโs University degree or equivalent in a quantitative field, preferably in mathematics, economics, engineering, statistics, actuarial science, risk or finance. FRM/CFA is a plus.
- Experience:
- Needed: 4+ years of technical experience in corporate finance, and the valuation/pricing of debt assets/private equity investments acquired at a peer institution or international bank; experienced knowledge of asset pricing and valuation models and frameworks (e.g. DCF, CAPM, APT, derivatives pricing models (e.g. options, CDS), hybrid securities, securitization structures); strong communication skills, including preparation and delivery of presentations to Management;
- Plus: Experience in model validation (effective challenge of conceptual soundness/ assumptions, testing), knowledge of financial data infrastructure, processing and management, coding; knowledge of statistical techniques for data sampling, predictive models, parameter estimation and statistical significance, hypothesis testing, model selection; Additional experiences in economic capital, market risk, ALM or operational risk.
- Extra: hands-on experience in producing advanced reports with BI tools, especially Power BI; process oriented to designing and implementing automated processes.
- Languages: oral and written proficiency in English required. Spanish is a plus.
- Systems: Advanced user of Microsoft tools: Excel, Power point, Word and Power BI (other similar tools like Tableau will be also considered), SQL; Strong coding skills (e.g. VBA, R, MATLAB Python, Julia); Experience with dynamic modeling solutions like Crystal Ball.
Requirements
Consanguinity: You have no family members (up to the fourth degree of consanguinity and second degree of affinity, including spouse) working at the IDB, IDB Invest, or IDB Lab.
Type of contract and duration
International staff contract, 36 months initially, renewable upon mutual agreement.
What we offer
The IDB Group provides benefits that respond to the different needs and moments of an employeeโs life. These benefits include:
International Staff:
-A competitive compensation package, including an annual base salary expressed on a net-of-tax basis.
-Leaves and vacations: 24 days of paid time off + 8 personal days + sick leave + gender-neutral parental leave.
-Health Insurance: IDB Group provides employees and eligible dependents with a robust medical benefits program that covers medical, dental, vision, preventive care, and prescription drugs.
-Pension plan: defined benefit pension plan that provides financial security and support employees in planning for their future.
-We offer assistance with relocation and visa applications for you and your family when it applies.
-Hybrid and flexible work schedules.
-Health and well-being: Access to our Health Services Center that provides preventive care and health education for employees.
-Development support: We offer tools to boost your professional profile, such as mentoring, 1:1 professional counseling, training and learning opportunities, language classes, mobility options, among others.
-Other perks: Lactation Room, Daycare Center, Gym, Bike Racks, Parking, Spouse Career Program, and others.
Our culture
At the IDB Group, we work so everyone brings their best and authentic selves to work while finding their purpose. Our people consistently strive for excellence, and we recognize and celebrate the impact of their contributions.
In our efforts to drive innovation, we intentionally include all voices, cultivate a sense of belonging and champion fairness. We welcome individuals from underrepresented groups to join us and share their unique perspectives.
We ensure that individuals with disabilities are provided reasonable accommodations to participate in the job interview process. If you require an accommodation to complete this application, please email us at accommodations@iadb.org.
Our Human Resources Team reviews carefully every application.
#IDBInvest
- Education: Masterโs University degree or equivalent in a quantitative field, preferably in mathematics, economics, engineering, statistics, actuarial science, risk or finance. FRM/CFA is a plus.
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- Primarily on asset valuation models (private equities, debt securities) and under little supervision, you will execute the model validation/assessment program prepared by the team lead. This will include, but will not be limited to: