Risk Management - Monthly Update January 2024

Welcome to the January edition of the Risk Recruitment Insider!

As we kick off the new year, we're pleased to report a positive start to 2024. While a hint of reservation remains, many firms have presented optimistic budgets, signalling a conservative uptick in hiring throughout the year.

Our interactions with senior leaders in risk management have led us to anticipate increased activity across the board in 2024. Here's a glimpse into key areas likely to witness high demand:

1. Technology/Cyber Risk:

• The surge in technology-driven trading and the growing complexity of cyber-crime will increase regulatory scrutiny upon the risk landscape.
• While major banks boast sophisticated risk teams, we anticipate growth in these teams. Challenger banks, fintechs, and digital assets firms are also rapidly expanding and will be closely monitored by regulators.

2. Asset Management & Hedge Funds:

• Buy-side firms are being challenged with escalating technology risks and the need to enhance overall risk management structures. This is likely to continue the increase in demand for non-financial risk skill-sets.
• As the market rebounds, we expect an increased demand for investment risk professionals.
• Notably, many firms that have previously relied or compliance teams to mitigate risks are looking to build risk teams from scratch.

3. Digital Assets/Crypto Funds:

• The crypto space, marred by failures in risk management in recent years, is now witnessing the rise of digital asset/crypto funds backed by established and regulated financial services organisations.
• With substantial investments pouring in, competition for talent in this space is intensifying.

While 2023 saw limited movement, the preceding years were marked by significant growth and shifts in the risk profession. The recent lull has led some professionals to consider new challenges. We anticipate a dynamic 2024, fuelled by increased job opportunities and a candidate market ripe for exploration.

Potential threats: The ever-evolving macro-political landscape in the Middle East and Eastern Europe poses potential risks. Despite recent increases in certainty, international relations can swiftly impact the market. The delicate balance requires careful consideration.

For a more comprehensive overview or inquiries, please don't hesitate to get in touch. Also, explore our recently released Risk and Compliance Salary Guide for 2024 here.

Wishing you a successful and prosperous 2024!