BSA 2024 Salary Guide Risk v2 SPREADS - Flipbook - Page 10
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Key factors affecting risk,
quant and treasury in 2024
Over the next 12 months, we expect various political,
economic and social factors to have an impact
on permanent and contract hiring levels.
Regulatory environment
New regulations often drive strong hiring demand
across risk, quant and treasury jobs, and 2024 is
shaping up to be a busy year on the regulatory front.
On 12 December, the PRA published the 昀椀rst of two
near-昀椀nal policy statements regarding the implementation of the Basel 3.1 framework. The new standards will cover a range of areas, including credit risk,
operational risk and Fundamental Review of the
Trading Book reforms.
According to the PRA, organisations now have an
extra six months to prepare for the initial implementation deadline, which has been pushed back to
1 July 2025.
The good news is that UK 昀椀rms already appear
to be well-prepared for Basel 3.1. EY research shows
that all the UK banks it surveyed had mobilised
a reform programme by May 2023, compared
with just 61% of European banks.
Half of UK banks are also using the Basel 3.1
standards to accelerate change across their
organisations, and we expect demand for skilled
risk professionals across a range of disciplines
to rise as the deadline looms.
Currently, 55% of organisations say Brexit has
reduced the number of suitably quali昀椀ed and experienced candidates available, of which 29% claim
the impact has been ‘signi昀椀cant’. These 昀椀gures have
risen from 43% and 20%, respectively, since 2022.
Hiring within the model risk space is also likely to
increase in 2024, after the PRA announced a new
set of principles last year in an effort to encourage
banks to approach model risk more strategically.
The principles will come into effect from May, and
organisations that fall within the scope of the
guidance will have 12 months to comply.
Moreover, 17% of employers speci昀椀cally highlighted
Brexit as a factor that was making it hard for them
to 昀椀nd skilled talent in today’s market – up from just
3% in 2022.
Meanwhile, new regulatory regimes such as ICARA
and DORA are driving demand for prudential risk
and operational risk professionals, respectively,
as 昀椀rms continue to navigate their new obligations
in these areas.
Brexit
In our 2022 and 2023 salary guides, many employers
cited Brexit as a key challenge that prevented
them from hiring. Little has changed over the last 12
months; in fact, the UK’s separation from the EU is
becoming an increasingly prominent problem.
We are also seeing fewer organisations willing to
sponsor overseas candidates (39% in 2023 versus
46% the previous year). This reluctance is partly due
to the costs involved, which are more dif昀椀cult to
justify when budgets are tighter and hiring demand
has weakened.
However, the complexity of the post-Brexit visa
process and surrounding rules around immigration
are also causing issues for both employers
and candidates.
