Geopolitical Risk Management Jobs in Rutherford, NJ

Established in 2002 as a result of unprecedented co-operation among the global FX community, CLS began settling FX payment instructions in 2002 in seven currencies for 39 settlement members. Today, CLS settles on average $5 trillion payment instructions daily in 18 currencies for 74 settlement members and over 25,000 third-party customers. CLS is supervised by the Federal Reserve Bank of New York, which co-ordinates with the CLS Oversight Committee, a formal co-operative oversight arrangement established by 23 central banks whose currencies are settled in CLS.

CLS Risk Management is led by the Chief Risk Officer (CRO), who reports directly to the Chief Executive Officer and, to ensure independence, also reports to the Risk Management Committee of the CLS Group Board. The CLS Risk Management framework provides robust processes, tools, reporting and controls for identifying, monitoring and managing risks which may affect the operational resilience, credit, liquidity and legal requirements of the CLS services.

Reporting to the CRO, Credit Risk (CR) department is responsible for establishing the requirements for identifying, assessing, managing, monitoring and reporting credit risk at CLS, including calculation and adjustment of aggregate short position limits and the assessment of compliance with initial onboarding requirements as well as on-going participation eligibility for direct service participants, currencies, and liquidity providers, (i.e., financial institutions with whom CLS enters into and maintains liquidity facilities). CLS is exposed to modest residual credit risk from each settlement member to the extent that they incur a short position in one or more eligible currencies.

      The position is based in New York and will work closely with diverse business and risk managers across the CLS Group to

• Use, and assist in the development of, statistical and econometric credit risk models such as indicators of sovereign credit risk and measures of settlement member finanial and operationa; resilience.
• Identify and monitor emerging economic risks/vulnerabilities in the jurisdictions that CLS operates in, as well as the global macrofinancial environment.
• Prepare analyses and reports that summarize and highlight key economic, financial, and geopolitical risks, for senior management

Macro and Modeling Specialists are prepared to:

• monitor market and political events relating to sovereign and financial institution of direct CLS service participants and Liquidity Providers, and identify potential areas of financial and operational concerns;
• conduct credit risk assessments of sovereign jurisdictions and l financial institutions that are either existing participant of the ecosystem or are applying to become participant of CLS Settlement Services. ;
• contribute in the research and development of internal metrics that quantitatively measure and estimate the degree of potential systemic risk that CLS faces.

The position requires involves active engagement and collaboration with a diverse audience of CLS stakeholders. Internal CLS stakeholders include: (i.) CLS’s Executive Management Committee, (ii.) other teams within the Risk Department, (iii.) Product/Sales, (iv.) Legal, (v.) Compliance, (vii.) Operations, (viii.) Information Technology and (ix) Internal Audit as it relates to soverieng and , counterparty credit risk issues.    

Other CLS stakeholders include: (i.) CLS Bank regulators, (ii) CLS’s Risk Management Committee, (iii.) CLS Bank Members, (iv.) CLS Bank Liquidity Providers and (v) other systemically-important participants operating within the CLS services.

The position offers a truly global opportunity to apply economic analysis, statistical methods, strategic planning and risk management disciplines to the CLS Group’s global foreign exchange settlement service and the broader CLS Ecosystem. The small size and high caliber of the CR team offers the opportunity to work closely with the CLS Executive Management Committee and other internal and external risk managers.

Essential Functions

Major duties and responsibilities of the job

Strategic

The Macro & Modeling will have responsibility for a global portfolio of sovereign and financial institutions counterparties and tasked with monitoring and evaluating macroeconomic and banking systemic risks, competitive and regulatory developments, in addition to managing annual strategic country and financial institutions portfolio reviews.  

The position involves continuous refinement to CLS internal benchmarks, risk analytical tools, processes and procedures for managing country and financial institution risks exposures in CLS and the broader CLS ecosystem.

The role offers the opportunity to work on high impact projects relating to emerging growth opportunities for the CLS Group. The position requires establishing relationships across the firm and influencing senior management and CLS’s regulators as it concerns the following:

•  Making recommendations on sovereigns and financial institutions that merit additional attention due to inherent risks, potentially impacting the respective credit limits;
• Monitoring sovereign and financial institutions ratings changes;
•  Following and analyzing economic and political developments in key developed and emerging market economies, and connecting these changes to the CLS Bank portfolio.

Leadership

The successful candidate will develop deep relationships across and outside of CLS and foster a strong culture of collaboration and partnership, including all of the following:  

• Opportunity to have a significant impact on risk strategy, appetite, and growth plans
• Broad exposure to management across businesses, functions and geographies
• Highly entrepreneurial role with significant room for project ownership and new idea generation
• Opportunity to be part of a fast-paced, high caliber Risk team with challenging goals and a strong commitment to excellence

Essential / Desired Qualifications

Experience, education and any certifications as necessary for successful job performance

•  3+ years of work experience in a risk, economist, or research role in a major investment bank or rating agency.
•  A Master’s degree in Finance, Quantitative/Mathematical Finance, or other quantitative discipline (preferred), or a Bachelor’s degree in Economics or Finance
•  Exceptionally good writing and presentation skills in order to translate quantitative analysis results into senior management and regulatory presentations.
• Proven experience in analyzing and understanding the risk profiles of banking institutions and sovereign jurisdictions using both qualitative and quantitative methods
• Excellent understanding of financial markets and macroeconomics, and the impact certain geopolitical events may have to the global financial market.
• Demonstrate strong organizational and time-management skills, as well as critical thinking
• Familiarity with using counterparty risk models under BAU and stress scenarios

Although not necessary, the following skills will allow the individual to succeed and contribute even greater value to the team:

•  Experience creating automated reports, visualization tools, and/or web-based dashboards using R and/or Python
• Track record in analyzing large datasets in order to create and maintain classification and predictive models for risk management business uses.
• Experience with devising, fitting, and evaluating statistical models, including principles of data science

Knowledge, Skills and Abilities / Leadership / Opportunities / Success Factors – “How”

Competencies required for successful job performance

•  Ability to work diligently and with limited supervision and in close partnership with CLS Group colleagues, business and risk management professionals, and CLS regulators.
• Ability to work efficiently and effectively in close partnership and collaboratively with CLS Group executive management, Risk division colleagues while maintaining a professional and cooperative demeanor at all times.
• Ability to clearly and logically defend risk management recommendation/opinion in a committee / conference call forum.
• Ability to work positively and energetically in a small team environment, and to assist with ad-hoc management of tasks that may not be the immediate responsibility of CRM, is essential.
• A work ethic that is professional, energetic, collaborative and forward thinking to increase the management depth and breadth of the CLS CRM and deliver priorities on a timely basis.

We are open to candidates in both the US and the UK.