In addition, a shortage of operational risk candidates at AVP and VP level led to an approximate 10-15% rise in salaries in 2015, with potential for further increases continuing in both investment and retail banking in 2016.
As a result of healthy growth within the traditional banks; we are now seeing greater demand across prime brokerage and payday loan companies; this is also due to increased investment across foreign markets and a lack of conduct risk infrastructures.
Credit risk is experiencing tougher capital regulations, putting pressure on the various traditional credit models, with more technically-aligned credit risk roles being created. This includes AIRB Development and IFRS9, impacting the impairment calculations.
Market risk remains consistent, with static salary movements; however we expect this to change in advance of new FRTB regulations. This will grow the demand for contract staff in particular. Investment risk professionals are becoming more desirable as asset management firms invest into high risk asset classes for greater ROI, increasing demand for those with cross asset experience.
New challenges in quantitative risk have driven regulatory hires within investment banks. Buy-side institutions are turning to data analysis projects to monitor and manage, transforming expectations of the traditional mathematical/statistical finance profile. Traditional asset classes such as equity and bonds are relatively busy, whilst FICC, commodities and emerging markets are quieter.
As the importance of embedding risk and controls into a business becomes more noticed at group level, there will be a growing need to hire individuals who can demonstrate strong stakeholder engagement who can influence external parties. Finding candidates with technical expertise and adequate communications soft skills is proving a challenge, organisations are increasing salaries and fast tracking promotions in order to attract the best possible people.