Model Risk Management & Validation Associate

CME Group • Wacker, IL

4d • Onsite

About The Position

As an Associate in Model Risk Management & Validation, you will perform a critical second-line function, ensuring the quantitative frameworks that underpin CME Clearing remain sound, transparent, and compliant with CFTC and SEC standards. Execute Model Validations: Manage the day-to-day validation process for new risk models and annual reviews of existing risk models, focusing on conceptual soundness and "fit-for-purpose" assessments. This includes drafting questions for model users and developers and conducting independent testing. Perform Independent Testing: Conduct rigorous testing and model replication to verify the accuracy of risk models’ calculations, including margining (e.g., Value-at-Risk) and stress testing methodologies. Manage Remediation Tracking: Maintain the model inventory and track agreed-upon remediation actions to completion, providing regular status updates to senior management. Author Technical Documentation: Draft detailed validation reports that clearly outline model descriptions, independent testing results, and identified findings for both technical and non-technical stakeholders. Collaborate Across Lines: Act as a primary point of contact for model developers (1st line) and external third-party validators to address inquiries regarding model risk management procedures. Refine Risk Policy: Support the Senior Director in drafting and enhancing model risk management policies, procedures, and ongoing monitoring standards.

Requirements

• Master’s degree or equivalent in a quantitative field (Finance, Mathematics, Economics, or Statistics).
• 3–5 years of experience in quantitative risk management within a financial institution or management consultancy.
• Solid understanding of risk management methods, including VaR, scenario analysis, and derivatives and securities markets.
• Ability to read and understand programming languages such as Python, C++, C#, or Java. You must be able to develop database queries and scripts for independent data analysis.
• Strong technical writing skills with the ability to document complex risk models clearly.
• Proven problem-solving and troubleshooting skills within a highly collaborative, team-oriented environment.
• This role is based in our Chicago office and requires a 5-day on-site presence.

Nice To Haves

• Professional certifications such as CFA or FRM are highly preferred.

Responsibilities

• Execute Model Validations: Manage the day-to-day validation process for new risk models and annual reviews of existing risk models, focusing on conceptual soundness and "fit-for-purpose" assessments. This includes drafting questions for model users and developers and conducting independent testing.
• Perform Independent Testing: Conduct rigorous testing and model replication to verify the accuracy of risk models’ calculations, including margining (e.g., Value-at-Risk) and stress testing methodologies.
• Manage Remediation Tracking: Maintain the model inventory and track agreed-upon remediation actions to completion, providing regular status updates to senior management.
• Author Technical Documentation: Draft detailed validation reports that clearly outline model descriptions, independent testing results, and identified findings for both technical and non-technical stakeholders.
• Collaborate Across Lines: Act as a primary point of contact for model developers (1st line) and external third-party validators to address inquiries regarding model risk management procedures.
• Refine Risk Policy: Support the Senior Director in drafting and enhancing model risk management policies, procedures, and ongoing monitoring standards.

Benefits

• A supportive environment fostering career progression, continuous learning, and an inclusive culture.
• Broad exposure to CME's diverse products, asset classes, and cross-functional teams.
• A competitive salary and comprehensive benefits package.
• Our compensation program also includes an annual target bonus opportunity for all employees, as well as the opportunity to become an owner in the company through our broad-based equity program.
• Through our benefits program, we strive to offer flexibility, value and choice. From comprehensive health coverage, to a retirement package that includes both a 401(k) and an active pension plan, to highly competitive education reimbursement provisions, paid time off and a mental health benefit, CME Group offers a holistic benefits package for our team and their dependents.

What This Job Offers

• Job Type: Full-time
• Career Level: Mid Level