# Head of Financial Risk Management

**Company:** [Kraken](https://hotfix.jobs/companies/kraken)
**Location:** Chicago, IL
**Role:** Executive Leadership
**Salary:** $110k – $221k/yr
**Experience:** 10+ years
**Skills:** Cftc Part 39, Margin Modeling, Stress Testing, Value At Risk, Expected Shortfall, Span, Historical Simulation, Monte Carlo, Volatility Modeling, Portfolio Risk Aggregation, Model Validation, Liquidity Risk, Default Management, Derivatives Clearing
**Posted:** 2026-08-28

> Leads margin modeling, market-risk oversight, stress testing, and regulatory governance for a derivatives clearing organization. Requires 10+ years of DCO risk experience, quantitative expertise, and the ability to engage with regulators and senior stakeholders.

## Job Description

## Responsibilities
- Lead the design, calibration, monitoring, and governance of initial and variation margin models for futures, options, and swaps.
- Recalibrate margin parameters, including lookback windows, volatility scaling, anti-procyclicality measures, liquidity add-ons, and concentration charges.
- Evaluate and enhance SPAN-style, VaR/Expected Shortfall, and filtered historical simulation methodologies.
- Conduct back-testing, sensitivity analysis, and model performance reviews; present findings to stakeholders, the Risk Committee, and regulators.
- Design and refine historical, hypothetical, and reverse stress-testing scenarios.
- Monitor clearing member and clearinghouse exposures, including concentration, wrong-way, liquidity, and tail risks.
- Assess default waterfall, guaranty fund sizing, and skin-in-the-game contributions.
- Produce daily, weekly, and monthly risk reporting for management, the Risk Committee, and regulators.
- Ensure compliance with CFTC Part 39 DCO Core Principles and related requirements.
- Liaise with the CFTC and other regulators during examinations, rule certifications, and inquiries.
- Maintain model risk management documentation and support Risk Committee preparation, member due diligence, and new product evaluations.
- Conduct clearing member financial and operational risk reviews, including capital adequacy, liquidity, and risk management practices.
- Monitor intraday and end-of-day exposures, margin calls, and collateral sufficiency.
- Partner with operations and technology to improve real-time risk monitoring tools and dashboards.

## Requirements
- 10+ years of risk management experience at a CFTC-registered Derivatives Clearing Organization, with direct ownership of margin or stress-testing methodologies.
- Deep knowledge of CFTC regulations, especially Part 39 DCO Core Principles, with familiarity with Parts 1, 22, and 190.
- Expertise in VaR, Expected Shortfall, scenario analysis, volatility modeling, and portfolio risk aggregation across futures and options.
- Experience designing and validating margin models using SPAN, SPAN 2, historical simulation, parametric, or Monte Carlo approaches.
- Hands-on experience designing and executing DCO-compliant stress-testing programs, including liquidity stress tests and default management drills.
- Bachelor's degree in Finance, Economics, Mathematics, Statistics, Engineering, or a related quantitative discipline.
- Excellent written and verbal communication skills, including presenting complex risk concepts to executives, board members, and regulators.
- Sound judgment under pressure, intellectual rigor, and strong attention to detail.
- Ability to collaborate across risk, operations, technology, compliance, and legal functions.
- Comfort engaging with regulators, clearing members, and senior stakeholders.

## Nice to Have
- Futures Commission Merchant (FCM) experience, including customer segregation, house versus customer margining, and FCM risk management.
- Experience with cleared derivatives across digital assets, interest rates, energy, agricultural, metals, equity indices, or FX markets.
- Knowledge of default management processes, including auctions, hedging, and porting customer positions.
- Experience supporting regulatory examinations, rule filings, or CFTC Part 40 product self-certifications.

## Compensation
- Annual salary range: $110,400–$220,800.

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