BS Risk Mid-year - Flipbook - Page 7
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Investment Risk
The demand for investment risk roles remains
broadly flat, with minimal hiring activity and limited
movement. Recently, three large asset managers
announced redundancies, including the departure
of two Heads of Investment Risk. While these
restructurings may create more demand next year,
the market overall is expected to maintain a steady
but limited flow of new positions across all levels.
RISK MANAGEMENT & QUANTS | RECRUITMENT MARKET UPDATE 2024
That said, a significant number of senior candidates
are currently interested in exploring new
opportunities. If even a few begin moving roles, this
could trigger a surge in vacancies by mid-next year.
This potential shift could be linked to the typical 3-5
year tenure that is common in such roles, coupled
with the fact that the last major hiring wave in this
sector occurred around three years ago.
Operational & Enterprise Risk
Operational risk and enterprise risk functions
continue to hire across various industries at all levels.
Growth is particularly strong in sectors outside of
financial services, such as pharmaceuticals, utilities
and telecommunications, where risk practices have
historically been slower to develop.
In contrast, there has been less organic growth within
the financial services industry. Many well-established
companies are opting not to replace senior-level staff
when they leave, instead choosing to either hire at a
more junior level or leave positions unfilled.
Despite the limited number of open roles, there is a
high level of interest from candidates exploring new
opportunities. This is especially true at the mid-level
of the market, although there is less activity at the
junior and senior levels.
Quantitative/Model Risk
While quantitative risk has been reasonably quiet
over the past six months, the need for hiring is
gradually increasing, primarily driven by regulatory
requirements such as Basel 3.1 and SS 1/23.
Basel 3.1 has had a significant impact on hiring trends
within the banking sector, influencing roles in risk
management, regulatory compliance and quantitative
analysis. The regulation, which aims to enhance
capital requirements and risk frameworks, has led to
growing demand for professionals who can navigate
its complexities, especially in the areas of model risk,
model governance and credit risk modelling.
Despite this demand, many firms currently lack the
budget or necessary approvals to proceed with
hiring. However, 2025 is expected to be a busier
year, with increased activity anticipated in both model
risk and model governance.
Asset Management in Europe
Hiring appetite among European asset managers
has been lower over the last six months, but this
is expected to change in the coming months. The
demand for talent – particularly in operational risk
– is rising, driven by regulations such as DORA and
Solvency II. Additionally, ESG remains a key priority,
with firms seeking candidates skilled in stress testing
and scenario analysis, especially in Luxembourg,
which has seen more activity than other regions.
Employers' urgency to hire also appears to be
increasing, likely due to the need to fill positions
before the end of the year to align with the 2024
Budget. Looking ahead to next year, clients indicate
they have hiring budgets in place, suggesting a
positive outlook for 2025.
For more information on key trends
that are currently shaping risk
management jobs, please click here.
