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2024: Risk & Compliance Salary Guide

The Future of Financial Crime

The future of Financial Crime presents a complex and evolving landscape, shaped by technological advancements and shifting regulatory frameworks.

Whilst it is challenging to predict with certainty, several key trends are likely to shape Financial Crime in the coming years. So, what are the trends?

Cybercrime and Technological Innovation: As banks and financial institutions embrace digital transformation, cybercriminals are finding new opportunities to exploit vulnerabilities in digital systems. Advanced cyber-attacks, including ransomware, phishing scams, and data breaches, are expected to increase. We have seen emerging technologies such AI, blockchain, and cryptocurrency present both opportunities and challenges for combating Financial Crime.

Cross-Border Threats: The interconnected nature of the global financial system facilitates cross-border Financial Crime, including money laundering, terrorist financing, and sanctions evasion. Criminal networks operate seamlessly across jurisdictions, exploiting regulatory gaps and jurisdictional differences to evade detection and prosecution.

Regulatory Scrutiny and Compliance Challenges: Regulatory scrutiny of financial institutions is expected to intensify in response to emerging risks and evolving regulatory standards. Regulators are imposing tighter requirements on banks and other financial firms to enhance transparency, accountability, and Compliance with AML and KYC regulations. Compliance costs are likely to rise as banks invest in enhanced AML/KYC controls, technology infrastructure, and staff training to meet regulatory expectations.

Environmental, Social, and Governance (ESG): Environmental, social, and governance (ESG) factors are gaining prominence in the financial industry, driven by investor demand for sustainable and responsible investment practices. Financial institutions are under pressure to assess and mitigate ESG-related risks, including money laundering, corruption, human rights abuses, and environmental crimes. As ESG considerations become integral to risk management and investment decision-making, banks must incorporate ESG criteria into their AML/KYC processes and due diligence procedures to identify and address emerging risks associated with unsustainable or unethical business practices.

Summary: The future of financial crime is going to be led by technological innovation, regulatory scrutiny, and evolving risk landscapes. Banks and financial institutions must remain vigilant, adaptive, and proactive in combating Financial Crime, leveraging advanced technology, collaboration with regulators and law enforcement agencies, and a commitment to ethical conduct and Compliance to safeguard the integrity and stability of the global financial system.

Looking to speak with a Financial Crime specialist? Please get in contact with Taylor Catton at taylor@theriskpartners.com

How to attract a diverse workforce?

Attracting a diverse workforce is a key focus for many organizations across the globe. Here are some strategies that can help your recruitment process:

1. Review your job descriptions and postings: Make sure your job descriptions are free from bias and do not exclude certain groups. Use gender-neutral language and avoid phrases that may be seen as discriminatory.

2. Use a variety of recruiting channels: Expand your recruiting channels beyond traditional sources. Consider posting job openings on social media, partnering with community organizations, and attending career fairs.

3. Make diversity a priority: Demonstrate your commitment to diversity by creating a diversity and inclusion statement and incorporating it into your company’s values and culture.

4. Provide diversity training: Provide training to your employees on diversity and inclusion to promote awareness and understanding of different cultures and perspectives.

5. Offer flexible work arrangements: Offer flexible work arrangements, such as telecommuting, flexible schedules, or job sharing, to help attract candidates with diverse needs and backgrounds.

6. Promote diversity at all levels: Ensure that diversity is represented at all levels of your organization, including in leadership roles.

7. Consider blind CV’s when hiring: Consider using blind hiring techniques, such as removing identifying information from resumes and conducting blind auditions, to help eliminate bias in the hiring process.

By implementing these strategies, you can create a more inclusive workplace culture and attract a more diverse pool of candidates.

If you are looking to hire in your team, please get in touch today: contact@theriskpartners.com

Risk Market Snapshot: Q1 2024

General Observations

The Risk job market has had a stronger start to 2024 than 2023. Last year there was a notable decline in the number of new roles coming to market for Risk professionals, part of a common trend across the Financial Services sector as a whole.

Whether that was a reaction to over hiring in 2022, or a determination on cost control across (or a mixture of both), it did not soften the regulatory spotlight and the demand for Risk talent strengthened in the second half of 2023. That trend has continued into 2024.

On the supply side, many job seekers have become more cautious when it comes to considering their next move, probably a direct result of the job losses across the Financial Services industry and the cost-of living crisis. That places more emphasis on employers to put prospective employees’ minds at ease, during the interview process, of their business performance and stability. While compensation and hybrid arrangements continue to be the key motivators, we are also seeing a notable increase in mid-senior professionals who are concerned about burnout. This is usually down to insufficiently staffed teams, leading to sustained long hours and weekends, with no prospect of things getting better. Also, cultural issues at companies where there are continuous pivots in strategy, meaning hectic workloads and unrelenting change.

International banks are hiring junior-mid-level Risk professionals sporadically, while domestic banks are notably quiet. Payments/ Fintech & Crypto companies continue to be the most active participants, as they build out their teams or replace people who are not suited to their cultures.

Skills in demand

This year has started with more activity in general, rather than the trends of the previous two, when the demand for Risk Managers came from the Commodities sector in 2022 and last year the strongest demand was for Credit Risk professionals. This year the demand comes broadly from all risk disciplines. That said Credit Risk managers and Non-Financial Risk professionals, particularly outsourcing & business resilience, are more in demand than their peers in other Risk stripes.

Sample of recent successful assignments

  • Wholesale Credit Risk Manager – Investment Bank
  • Real Estate Credit Risk Manager – International Bank
  • Operational Resilience Director – Capital Markets
  • Manager Oil & Gas Credit Risk – Commodities Co.
  • Senior Operational Risk Analyst – Investment Bank
  • Operational Risk Director – Investment Bank

The Risk Partners are a boutique recruiter, with Corporate Governance (Risk, Compliance, Legal) at the heart of its activities. We live in a world where Governance steers the world through often challenging times.

Our aim is to work in partnership to develop careers and find business solutions. Please get in touch to discuss how we can help you. contact@theriskpartners.com

Market Intel: Credit Risk Modellers / Quants

Market Intel: Credit Risk Modellers / Quants

Date: January 2024

Sector: Retail / Consumer / Asset Finance / Corporate Banking

Key areas considered: Credit Risk Modelling, Model Validation, Model Governance

Salary guide:

Amount of experienceGradingBase Salary (London)  Base Salary    (Regional)
15+Managing Director£150k – £200k  £130k +
10 – 15 yearsDirector£120k – £150k  £100k – £130k
7 – 10 yearsVP£90k – £110k  £80k – £100k
5 – 7 yearsAVP£75k – £90k  £65k – £80k
3 – 5 yearsSenior Analyst£60k – £75k  £55k – £65k
1 – 3 yearsAnalyst£45k – £60k  £40k – £50k
0 – 1 yearsGraduate£40k – £45k  £35k – £40k

Market intel

  • Change is afoot within this space, given the reduction of staff within the likes of Barclays and Metrobank
  • Early signs for 2024 is that more candidates are beginning to search for roles (which is a positive development from 2023)
  • Regulatory rules / scrutiny has been increased and we have seen IRB applications rejected
  • Candidate availability remains tight and pools of talent are heavily regional (e.g. Manchester, Glasgow, London – with remote & hybrid working, talent is harder to relocate geographically)
  • Sponsorship rules post-Brexit have put a real strain on this talent pool (i.e. Historically, strong candidates have come to the UK from all over the world)
  • Cost cutting in firms has seen Big 4 Consulting firms ‘roll off’ projects leaving a skills gap
  • Hybrid and Remote working are now very typical within this space
  • Salary differential between London and regional is now quite closely aligned compared with other areas
  • IRB experience can still command a slight premium, given this experience is in higher demand

For more information about finding a new position, or if you are looking to hire, please get in touch with us at contact@theriskpartners.com 

Perfect Preparation for the Perfect Interview

Here are our tips to impress your future boss.  Broken down for you into straightforward digestible steps:

Preparation, Preparation, Preparation

Preparation – the Scouts always said that the key was to “Be Prepared”. Interviews are no different. If you have done your homework, then you will be confident of having the right answers. You won’t get caught out (or find yourself tongue tied) as you have thought about and practiced the scenario

Know your CV – the Company has chosen to interview you, based on the strength of your CV and the skills you have mentioned. So, you must know it inside out and have good relevant examples ready to go

Research the company – some interviewers want to know todays Shareprice, others want you to have read the website and an understanding of their core business. You need to know who you are interviewing with and what the Company does

Research the interviewers – take a look at their LinkedIn profile, Google their name, you may find you have interests / people in common

Re-read the job description – you need to understand the role. If you don’t know what the role is, you can’t think about the relevant experience you have

Imagine you are in the Managers seat – what would you want to hear / see in a candidate? You would want to see good eye contact, a smile, well thought out answers, good examples of related work to what their team does. They want you to tell your story . . . so tell it

On the day: The Basics

Dress to impress – generally we advise people to overdress. Show you have taken time and are treating the interview seriously. If in doubt, ask the Recruiter in advance of what the company expects

Arrive early – nobody is impressed by a flustered, stressed out, panicked interviewee. Get there early, have a coffee nearby and get your ‘game face’ on

Documentationbring ID along with a copy of your CV and the job description

Professionalism is important – yes, its important to make a connection, show the real you, but its important to read the tone of the professional environment. Once you are colleagues you can drop your guard, but for now its business time

Politeness and smiletreat everyone you meet with respect and a smile. It goes a long way and gives the best impression of you

Relax and Deliver

Relax – take a breath and control the nerves (we all get them and a few nerves are a good thing by the way)

Be positive – believe in yourself, believe in your preparation, believe that you have a real chance at getting the job (and you really do)

Be authentic – sometimes trying too hard shows. You can only be yourself, so that’s what you should be

Be Realistic – let’s face it, there is no such thing as a perfect interview. We will all make mistakes. But the key is to deliver “you” in the best possible way. So don’t be too hard on yourself

Ask Questions – Remember that an interview is a two-way process. Managers want to be asked about themselves, their team, the Company, their vision and its important for you to understand where you fit into those plans. Think of some questions in advance

The Risk Partners are here to help. Working with us will give you access to a wealth of advice, tips and stories from our Partners. We have trodden the paths before, so do let our experts help you.

Get in touch today: contact@theriskpartners.com

Which area of Risk Management is right for you?

The Risk Management profession has grown significantly over the years and is vital to the Financial Services industry. The importance of strong Governance has resulted in specialist disciplines being established.

Different skills are required for each area. So which area are you most suited to?

1) Market Risk / Quantitative Risk / Model Risk

• Strong academics are highly desired. Generally, professionals have Masters Degrees or PhD level academics in a numerate subject (e.g., Maths, Physics)
• The roles involve mathematical calculations, modelling and scenario generation. A high level of technical competency in the likes of Excel, VBA, SAS, SQL is often required

2) Operational Risk / Enterprise Risk

• The ability to think about the big picture, to spot problems, build frameworks and implement controls to prevent risks occurring are core to the discipline
• Operational Risk professionals are required to work with every area of the firm, so require good people skills and the ability to challenge existing processes

3) Credit Risk

• Integral to the Banking sector and the key offering of the Risk function
• Analytical and research skills are required to determine is a loan or trade should be done
• Mathematical / financial statement analysis skills are required in addition to ability to make multi million-pound decisions

4) Treasury / Liquidity Risk
• Generally, suits those from an Accounting / Finance background
• Financial liquidity is crucial to business, risks posed to its core operations must be minimised
• Mathematical and accounting skills are used every day along with relationship management skills with internal departments

5) Technology Risk / IT Risk /Cyber / Information Security

• A highly technical discipline with many sub areas and specialisms
• Professionals will have IT based academia including the likes of Computer Science and professional qualifications such as CRISC
• Skills in SAS, SQL, VBA, Advanced Excel are required
• Awareness of frameworks such as NIST CSF, RMF, ISO, C-SCRM, SOC 1 / SOC 2 etc

The Risk Partners are here to help. Working with us will give you access to a wealth of advice, tips and stories from our Partners. We have trodden the paths before, so do let our experts help you.
Get in touch today: contact@theriskpartners.com

How to take your Career to the next level

1) Education

• Standing out academically is an excellent start. But what if you don’t? You can Strengthen your profile and knowledge with an MBA, and industry-based qualifications such as FRM, CFA or CISI.

2) Obtain relevant vocational exposure

• A related Internship could kick start your career at the outset
• As an experienced professional get involved in NED assignments to broaden your exposure / perspective
• The more senior you become, the broader your position is likely to be. Showing breadth of experience / responsibility will make you a more viable candidate for the top jobs
• Mentor and manage other professionals around you

3) Expand your network outside of your immediate team

• Network with peers
• Speak to divisional heads, team leads, team members and EA’s
• Stakeholder support will help propel you through the corporate world

4) Get your name known in the industry

• Get involved with specific industry groups, you can learn, network and grow
• By regularly attending and speaking at industry specific forums, your stock will certainly rise
• Consider forums such as: PRMIA, GARP, Risk.net events, Risky Women, The Risk Partners events
• Have an opinion – get involved in internal seminars, participate in online discussions / webinars / podcasts

5) Come up with new ideas & suggestions

• Successful new ideas and practices will propel your career
• Carve out a niche area and building something new

6) Reflect on your skills and your career plan

• Think about your career plan and milestone goals
• Reflect on what you are good at and showcase it
• Know where you want to be in the future, plan the path to get there

7) Consider exploring career options outside of your current firm

• There is a big world of opportunity out there, other firms want and need your experience
• Give The Risk Partners a call to discuss your path. We can confidentially talk about your trajectory, market value and recommended steps

The Risk Partners are here to help. Working with us will give you access to a wealth of advice, tips and stories from our Partners. We have trodden the paths before, so do let our experts help you.
Get in touch today: contact@theriskpartners.com

Why is a CV / Resume so important?

“A great CV will help land your dream job”

‘Digital you’ – a potential employer hasn’t met you in person yet. So, they are relying on a Word / PDF representation of you, which makes the first impression and showcases your experience and skills.

007 Seconds – Experts have found that a decision on whether to interview a candidate will take place within 7 seconds of reading a CV. So, it needs to be clear, concise and relevant.
Also, where does the good stuff need to go? (Hint: Its near the top of the CV)

Volume of applications –Recruiters / Talent Acquisition professionals / HR Managers will get a LOT of CVs across their desk for a vacancy. Those that are relevant, clear and targeted to the job, will help your CV get through the initial screening.

Shows you are serious – if you have a high level of attention to detail it shows you mean business. If your CV is sloppy, then it makes firms wonder if that’s your approach to work? Information needs to be accurate, to the point and tailored towards the role in question

Reduces problems later – if dates are correct, academia is fully updated, you will sail through the onboarding steps at the end of the interview process. If not, you could be back to square one

Compliments the interview – everyday tasks, core skills and examples listed on the CV will give an interview the basis for discussion. Also, you can prepare for the interview around the points listed

The Risk Partners are here to help. Working with us will give you access to our wealth of experience through advice, tips and stories from our Partners. Let our experts help you.

Get in touch today: contact@theriskpartners.com

How to write a job description!

The number of risk managers seeking new roles was high before the COVID crisis, and the pandemic’s economic impact on the employment market has driven the number of vacancies down. However, the demand for risk managers is resilient, and it is very much a buyers’ market.

Consequently, scrutiny of the quality of job specifications and their suitability to the applicants they are trying to attract is becoming the norm. Job seekers are becoming more vocal in their critique of various social and business platforms. This critique is often warranted and comprises a combination of the following complaints:

· This job spec asks for everything 

· It doesn’t tell me much

· Why is this or that qualification necessary for this role?

· This is the same job spec from 6 months ago – is it the same role?

Our tips are written with Risk roles in mind and are inspired by conversations with candidates and hiring managers.  

Job Title

Approach bespoke titles with caution: applicants actively search for roles based on job titles. While “Investment Risk Analyst” may seem bland, it will yield the most effective search results and give your vacancy exposure to the relevant audience. You can liven up the vacancy in the job description content. If you are not listing salary, be cautious of overemphasising level as corporate grades vary across the market; an Associate Director’s responsibilities in one firm may be quite different in another, for example.  

Career progression and growth

Too few job specs address career trajectory. It is unnecessary to go into extensive detail, but the knowledge that there is a powerful career path from the first day of joining is attractive. Research shows that remuneration is not the foremost reason risk managers move roles—career projection, work-life balance stack grade higher.

Boring

If your job description is bland and focuses purely on the employee’s responsibilities, your readers may feel this reflects the firm. Ideally, your marketing team should be involved in selling the features of joining your organisation. Many fintech’s get this right. It appears contradictory to sell your services to consumers and yet have a copy and paste bland, generic job spec. It can portray the impression of a customer-first approach rather than a people-first approach. 

Discriminatory language

From “he must have” to masculine language such as “dominant.” To avoid this, we recommend using gender decoding tools that assess if the language you use is gender bias. There are several free and paid tools on the market. Statistics show that the language used in job specifications is more likely to dissuade female applicants from applying. Only 25% of companies set gender diversity targets when recruiting, and the efforts to recruit a diverse workforce begins with the job description.  

Certifications

There is now a depth in the certifications available to risk professionals. A few years ago, it would suffice to stipulate: “relevant qualifications” as a criteria. Now the opportunity to use qualifications specific to credit, investment, information security, market and operational risk could give you an advantage in finding the ideal candidates faster if they are genuinely relevant to the position. If in doubt, there is no harm with having a flexible approach to certificates.

We are an ‘Equal Opportunities Employer’

Think carefully about promoting yourself as an “Equal opportunities employer” if there is no diversity within your senior team. One firm, aware of their undiversified management, wrote in their job spec. “We are an Equal opportunities recruiter and are striving to make improvements in this every day.” This disclaimer seems genuine and challenges the assumption that “equality status” is a badge of honour rather than a discovery and journey towards improvement. 

Applicants are likely to judge this Equal opportunities employer statement on a firm’s Leadership Team website page and Linked In information.  

Creating a job description should not be an automated process, it should be as individual as the employee. Risk Partners offers a job description creation as a Service, enabling you to attract the right talent.  

Your job description advertises your organisation and your team. Not everything should be recycled. Reach out to discuss our service.

Matt Brown 

Director 

matt@theriskpartners.com