Stress Testing and Scenario Design Associate

The Impact you will have in this role:

FR&Gs mission is to provide effective and efficient identification, measurement, monitoring and control of market, liquidity & Stress Testing related to the clearing and settlement processes for DTCC, its members and the markets. In addition, FR&G provides critical governance and quality assurance capabilities for key risk functions that are designed to meet rigorous organizational and regulatory standards. FR&G works under delegated authority from the Board and senior management to manage these risks within defined risk tolerances, as approved by the Board and senior management. FR&G collaborates closely with Quantitative Risk Management and the Counterparty Credit Risk teams to maintain an integrated and comprehensive approach to financial risk management at DTCC to support an effective second line of defense. FR&Gs prime directive for DTCC's applicable clearing agencies and joint ventures consists of the following: • Maintain sufficient collateral to cover any losses associated with the liquidation of any defaulting member or family portfolio under extreme but plausible scenarios; • Ensure that sufficient liquidity resources are available so that each entity is able to settle all transactions as contracted in the event of a failure by the single largest member or family under extreme but plausible circumstances; • Exercise continuous improvement of policies, procedures and processes that support robust, ongoing member surveillance and effective but appropriate response to distress events; and • Manage FR&G to maintain a deep and broad product knowledge and risk framework to effectively measure and manage market, liquidity and credit risks. Liquidity Risk & Stress Testing is responsible for monitoring and managing market and liquidity risk exposures arising from trade execution and settlement activities in the clearing corporations and the depository, including in extreme but plausible market conditions. Responsibilities also include driving new business initiatives, overseeing risk systems design and continuous enhancements, compliance with Risk Management policies and procedures. Understanding of stress testing methodologies, keen understanding of financial markets and client profiles. Abilitiy to identify, analyze, and mitigate potential risks and safeguard financial market in which DTCC plays a pivotal role.

Your Primary Responsibilities:

• Identify the macroeconomic variables that are most likely to trigger stress in financial institutions and maintain the risk inventory.
• Monitor market conditions and economic trends to anticipate potential risks and impact on the stress scenario inventory.
• Design market risk and liquidity risk stress scenarios considering macroeconomic conditions and risks to DTCC.
• Performs day-to-day functions contained in the procedures such as monitoring stress-testing systems, analyzing stress-testing results, tracking trading patterns of member firms, etc.
• Develop a strong understanding of clients' business and risk profiles to aid the development of stress scenarios and to serve as a point of contact for risk related support and inquiries.
• Mitigates risk by following established procedures, identifying and calling out emerging risks, and demonstrating strong ethical behavior.
• Collaborates with cross-functional teams including Counterparty Credit Risk, Market Risk, Operations, Treasury, Quantitative Risk, and Relationship Management to bolster risk management practices.
• Collaborates with business analysts, developers, and quality assurance testers to improve risk management systems.
• Educate clients on risk management tools and initiatives.

Qualifications:

• Minimum of 4 years of related experience
• Bachelor's degree in economics, finance, data science preferred or equivalent experience
• Knowledge and experience with stress-testing, scenario analysis and back-testing of margin models

Talents Needed for Success:

• Fosters a culture where honesty and transparency are expected.
• Stays current on changes in their own specialist area and seeks out learning opportunities to ensure knowledge is up-to-date.
• Collaborates well within and across teams.
• Communicates openly with team members and others.
• Resolves disagreements between colleagues effectively, minimizing the impact on the wider team.

The salary range is indicative for roles at the same level within DTCC across all US locations. Actual salary is determined based on the role, location, individual experience, skills, and other considerations. We are an equal opportunity employer and value diversity at our company. We do not discriminate on the basis of race, religion, color, national origin, sex, gender, gender expression, sexual orientation, age, marital status, veteran status, or disability status. We will ensure that individuals with disabilities are provided reasonable accommodation to participate in the job application or interview process, to perform essential job functions, and to receive other benefits and privileges of employment. Please contact us to request accommodation.