2017 Risk Management Salary Survey Guide

Sam Turner 24.02.2017

We anticipate an increase in recruitment in the quantitative risk space, mainly around the model validation, operational risk and methodology areas.

View our most up-to-date Risk Management Salary Guide.

Contents:

Permanent Salary Guide - London

Basic Salary (£ Per Annum)

Role Analyst
0-2 Years
AVP
3-4 Years
VP
5-7 Years
Director
8-10 Years
MD
10+ Years
Quantitative Risk Analysis 45,000- 60,000 60,000 85,000 90,000-130,000 135,000 -180,000 180,000+
Market Risk Management 40,000-55,000 55,000 75,000 80,000-130,000 130,000 -150,000 175,000+
Market Risk Control 40,000-50,000 55,000 70,000 75,000-110,000 120,000 -145,000 150,000+
Investment / Portfolio Risk 40,000-50,000 55,000 70,000 75,000-90,000 100,000 -130,000 150,000+
Credit Analysis 40,000-50,000 55,000 75,000 80,000-125,000 130,000 -150,000 175,000+
Credit Risk Control 40,000-50,000 55,000 65,000 70,000-100,000 110,000 -125,000 130,000+
Operational Risk Management 40,000-55,000 55,000 75,000 80,000-120,000 125,000 -150,000 165,000+

Risk Management London Permanent Commentary

Overview

Recruitment levels for permanent roles specialising in risk were sporadic across 2016. This was due to factors outside of normal economical control such as the EU referendum and the unexpected result from the US Presidential elections. The lack of trading volume and bank to bank lending has also contributed significantly. 

Having said that, the year saw an increase in hiring in the quantitative risk space, mainly around the model validation and methodology areas. We have also seen good levels of recruitment in the operational risk space, namely around 2nd line of defence projects. We anticipate that 2017 will largely mirror these trends, with quantitative risk again expected to be the main area of hiring, particularly with incoming regulatory changes.  

Positive & Negative News

Demand for credit risk control and market risk analysts looking at asset classes has been low, with very few of these roles being advertised by our clients. Due to an increase in regulatory pressure the demand for quantitative analysts has been high. This is compounded by the stress tests that the Bank of England carried out, where some banks failed and others hit below par performance. The year also saw many organisations embark on widespread cost cutting measures, which in turn has impacted the availability of risk based roles, as many have been moved offshore to sites in Europe. 

FRTB led the market risk hiring space with both BAU and change roles, with this experience dominating the start of 2016 hiring. Basel compliance deadlines have been pushed back and are again at risk of falling further behind, nonetheless junior individuals with this knowledge are creating competition between institutions and pushing up salary brackets significantly. Reacting to these deadline delays, banking groups are now making business critical hires in non-traded market risk with a specific need for detailed experience of IRRBB & CSRBB. A need for candidates with direct banking experience in a combination of both IRRBB and ALM has been met with a shortage, resulting in a spike of Big 4 consultants being hired.

Qualities & Skills in Demand

A common theme for roles that we have worked on within fintech and start-up companies is that employers are not just looking for someone who ticks the boxes in terms of accountability and responsibilities. Employers are looking for someone who is capable of taking a step back and looking at the bigger picture. Being naturally curious and proactively looking to examine systems, procedures and policies that are already in place in a new light is very much welcomed. 

Strong financial analysis skills are in demand but candidates need to look beyond the figures and accounts - be vigilant and pick out the risks, trends and forecast performance along with capital and impairment needs.  

Having experience in SAS and being comfortable with manipulating data sets is also desirable. Given that most of our clients have international exposure or an FX function with international clients, having language skills (e.g. fluency in English and German, French, Czech or Polish) is an advantage.

The challenges we have found is that employers are not just looking for seasoned risk professionals who can carry out the BAU tasks, but candidates who possess a knack for building strong personal and professional relationships with their key stakeholders with the ability to be convincing of this quality during interview. Another hurdle we have come across when managing the latter stages of an interview process is preparing candidates to be assertive in their answers. Hiring managers are becoming ever more demanding and focusing on the softer skills of candidates and may ultimately overlook their technical capability of the role over this requirement alone. 

Outside of Work

We have noticed that candidates with international secondments have a better prospect of moving up the corporate ladder. The CFA is still a very desirable qualification and clients tend to leans towards candidates with such profiles. But one of the key pillars of getting promoted in the current market conditions has been very much internal networking. Getting promoted because of what your peer group thinks of you is a very powerful tool and more and more individuals are using this to their advantage to help them move their way up. 

Notable Trends

Even following on from the EU referendum vote, we saw a sharp rise in EU candidates and we have actually seen an increase in the demand of clients wanting to see candidates from the Eurozone. 

Temporary Salary Guide - London

Basic Salary (£ Per Day)

Role Analyst
0-2 Years
AVP
3-4 Years
VP
5-7 Years
Director
8-10 Years
MD
10+ Years
Quantitative Risk Analysis 200-400 350-450 450-600 600-800 800-1,000
Market Risk Management 200-250 250-400 400-550 550-750 750-900
Operational Risk Management 200-250 250-400 400-550 550-750 750-900
Credit Analysis 200-250 250-300 300-400 400-500 500-700
Market Risk Control 150-200 200-300 300-450 450-550 550-650
Investment / Portfolio Risk 200-250 250-400 400-550 550-750 750-900
Credit Risk Control 150-200 200-300 300-450 450-550 550-650

Risk Management London Temporary Commentary

Overview

The contractor market has witnessed a challenging job flow throughout 2016 based on many macro economic factors such as low oil prices, the EU referendum, US elections and the pushing back of large regulatory driven projects such as FRTB. We are hoping to see this change throughout 2017 as deadlines are going to be staggered and these deadlines must be met.

Positive & Negative News

We anticipate that we will see an increase in model validation across pricing models as the regulators prefer these models to be documented to SR11-7 standards. We have seen some recruitment across these areas in 2016, however this was sporadic.
 
We have also seen a slight increase in recruitment for operational risk across all three lines of defence with a specific focus on 1st line, where candidates need strong in-depth knowledge of the functions for which they are undertaking RCSAs. The most noticeable change has been the move away from modelling operational risk capital requirements relating to the very difficult AMA approach and a shift towards a standardised approach.
 
Market risk and counterparty credit risk remained quiet during 2016, but we are expecting this to change going into the latter half of 2017 as banks attempt to implement their FRTB programs.

Qualities & Skills in Demand

From a change perspective, we are seeing a greater requirement for senior business analysts across data-centric projects around FDSF and BCBS239. We have also received significant volumes for project managers and programme manager positions within these same programs. We may see a similar level of contract roles for ring fencing projects and also for stress testing (EBA, CCAR, PRA and ICAAP) as capital requirements are always important considering modern day regulation.

Notable Trends

There is more of a drive for equality within many risk teams. Credit analysis seems to attract women more than men whereas quantitative finance, market risk and counterparty credit risk appeal more to men. This is causing an issue with diversity where teams are looking for an equal mix. Further to this some teams are made up of people from one nationality and this can also cause a lack of cultural diversity. Realistically many larger firms are putting equality and diversity high up on their list of priorities.

Sam Turner's picture
Principal Consultant
sturner@morganmckinley.co.uk

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