The Thriving World of Risk; Why the Risk Recruitment Market Will Remain Busy
Introduction
In the dynamic world of finance, the realm of risk recruitment plays a pivotal role in ensuring that financial institutions are well-equipped to manage and navigate the ever-changing landscape of risks. The risk recruitment market has proven resilient and continues to grow, driven by several key factors. In this blog, we will explore the reasons behind the market’s enduring activity and discuss how various factors, including high wage inflation, regulatory changes, technological advancements, and evolving skill requirements, contribute to its sustained demand.
High Wage Inflation and Salary Distribution
One of the primary drivers for individuals seeking new job opportunities in the risk sector is monetary incentives. High wage inflation, combined with a wider distribution of salaries within the industry, makes it enticing for professionals to consider new roles. In a world where financial security and personal financial growth are paramount, it’s no surprise that compensation remains a top motivator.
A Liquid Mature Risk Recruitment Market
Contrary to the myth that a buoyant risk recruitment market necessitates continuous growth, it thrives on liquidity. The average tenure at a financial institution in risk-related roles is around five years. This means that roughly 20% of the workforce is on the move each year, seeking new challenges and better opportunities. As a result, the need for risk recruitment services remains constant to fill these vacancies and maintain a talented workforce.
Regulatory Changes
The regulatory agenda in the financial industry is ever-evolving. New regulations, updates to existing ones, and shifts in compliance standards create a perpetual demand for risk professionals who can navigate this complex terrain. Notable regulatory changes include Basel 3.1, Operational Resilience, Consumer Duty, and Edinburgh Reforms. Institutions must stay compliant and adapt to these changes, further fueling the need for experienced risk experts.
Technological Advancements
Technology is transforming the risk landscape, and financial institutions are increasingly embracing automation and data-driven decision-making processes. This transformation involves migrating from SAS to more agile languages like Python, automating control frameworks, and integrating artificial intelligence (AI) for managing model risk. As technology evolves, the skillset required to drive these changes within businesses also evolves, leading to a continuous demand for tech-savvy risk professionals.
Growing Need for Credit Optimisation
The need for credit decisions has always been crucial in the banking sector. However, in today’s competitive environment, the need to optimize credit decisioning is even stronger. Institutions must make informed lending decisions while managing risk effectively. This has led to a sustained demand for professionals well-versed in credit risk strategy, as well as expertise in International Financial Reporting Standard 9 (IFRS 9) and collections strategy.
Risk Recruitment Remains Vibrant
The risk recruitment market remains vibrant and resilient due to a confluence of factors, including high wage inflation, ongoing regulatory changes, technological advancements, and the evolving skill requirements in the finance industry. As long as financial institutions seek to mitigate risks, adapt to regulatory changes, and harness the power of technology to enhance their operations, the demand for skilled risk professionals will continue to drive the recruitment market forward. Whether you are a seasoned risk expert looking for new opportunities or a financial institution seeking top talent, the world of risk recruitment is poised to remain busy for the foreseeable future.
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