What’s hot where? 2017 salary trends across an uncertain world

A risk manager’s salary could run well into the millions in some banks but it could also be a tiny fraction of that if it’s the wrong industry and the wrong location

What’s hot where? 2017 salary trends across an uncertain world

Risk Management News

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Supply of and demand for risk professionals varies regionally depending on the geopolitical context and regulatory environment. These nuances can greatly affect compensation. “A chief risk officer (CRO) at a major bank like Barclays will be on about £2m a year in base, bonus, and shares, whereas a CRO at the National Bank of Kuwait will earn approximately £200k in all,” said Antony Berou, senior consultant of financial risk at Barclay Simpson.

Corporate Risk & Insurance broke down some of the biggest 2017 compensation trends worldwide. Globally, specialists in compliance and regulatory risk, cyber, and information technology functions were most in demand – a trend that will almost definitely continue.


Source: Robert Walters 2017 Global Salary Survey

UK – only uncertainty is certain

Malaise concerning remuneration is permeating the country: 48% of UK risk managers reported compensation as a key factor for entering the recruitment market – a significant increase from 30% the previous year. Payscale, which uses a combination of crowdsourcing and big data technologies to tabulate salary estimates, places the median annual earnings for a UK risk manager at US$68k, but Barclay Simpson’s 2017 mid-year risk compensation and market trends report found that higher-level risk positions in investment banking net around US$540k. Persistent uncertainty over Brexit will continue to influence apprehension over salary levels. “A Soft Brexit approach is preferable for the continued viability and success of many risk management departments,” said Barclay Simpson. “It is very difficult to make any sort of prediction on what is likely to happen over the longer term due to the uncertainty surrounding Brexit.”

Europe - shifting regulatory landscapes drives demand

Risk managers were able to negotiate higher salaries throughout the Benelux countries, according to Robert Walters’ 2017 survey, where demand for risk professionals got further ahead of supply. Regulatory changes were cited as the main drivers. Payscale identified median salaries for individuals with the title risk manager in the Netherlands as US$77k and in Luxembourg as US$85k. Interestingly, the Netherlands had among the highest total earning potentials – US$158k. Robert Walters’ specialists in the Netherlands office reported strongest demand for individuals in credit risk due to demanding new regulations like IFRS9, which require companies to adapt their credit risk models.

Germany is experiencing a shortage of candidates in risk, according to Robert Walters. With Brexit creating a stir in the banking sector, Frankfurt saw an influx of demand for risk professionals in the operational, market, and credit risk sectors. “I would personally say that Germany, at the moment and in the current climate, is the best place to be a risk manager from a career prospective,” said Behi Farid of Robert Walters Germany. “What we’re seeing is major career progression for risk candidates, with less competition compared to London, Paris, Lisbon, or Madrid.” Typical compensation packages are currently fluctuating around US$118k to US$142k, with top specialists earning around US$165k.

Multilingual candidates were particularly well compensated in France, where the median risk manager salary was US$83k (Payscale). As in Germany, risk professionals who are well versed in EU risk management will be competitive in the post-Brexit landscape.

North America – it’s that man again

In North America, President Trump was elected against a backdrop of a strong economy, but anxieties remain about how policy and regulatory changes could affect the market for risk management professionals. “What might be good for banks, the financial services industry and other sectors in terms of lighter regulation might not be so good for risk managers,” stated Barclay Simpson’s 2017 North America risk management market report. Meanwhile, the Risk Management Society (RIMS) reported a 3.5% salary increase for US-based risk management professionals in the past year, as median base salaries reached US$120k. That number varies by position and sector, of course. Higher education is correlated positively with salary, and individuals with postgraduate degrees reported an average of US$29,200 more per annum than those without. To the north, Canadian risk professionals boasted a far lower US$83k median base salary, all other trends remaining similar.

Asia-Pacific – burgeoning profession

The risk management profession continued to grow in Asia-Pacific, particularly in response to rising regulation. In Australia and New Zealand, Robert Walters reported active recruiting for risk professionals with a financial crime compliance background in response to demanding anti-money-laundering (AML) legislation. “Increased regulatory and public pressure has led to further scrutiny into the conduct of a bank,” said Robert Walters’ Australia office. “Managing [conduct risk] is an industry-wide issue and represents a significant challenge in 2018.” The top salary for risk managers in Australia was earned by AML specialists, estimated by Robert Walters in 2017 to be up to US$152k. Generally, new-hire compensation packages in Australia increased by 5–10% across middle management to general manager levels. In New Zealand, risk professionals with strong SAS, SQL, and Tableau experience are expected to see the highest salary gains, says Joe Whitfield, senior consultant – banking & financial services, Robert Walters.

In east Asia, candidates with niche skills, cross-cultural experiences and multilingual abilities were in highest demand. Mainland China featured some of the loftiest pay levels – base salaries for director-level credit and compliance risk managers were reported to be as high as US$220k (Morgan McKinley). The candidate pool in China remains relatively small, thus driving remuneration. Hong Kong, on the other hand, saw cuts to risk professionals at the higher levels, refocusing development to the junior level.

Robert Walters found that demand for specialised, often quantitative skills also drove trends across countries like Japan and Malaysia. New banking regulations and compliance monitoring in Malaysia led to demand for risk functions, but hiring remained static in Japan, where volatility in the global markets resulted in stagnant hiring, despite salary increases for risk managers with niche skills in technical areas like programming and development. 

Hiring managers in Singapore reported the highest demand for mid to senior-level operational risk professionals despite overall modest levels of hiring within the risk sector in 2017.  Credit risk candidates were also being actively recruited, particularly within the commercial and middle-market segments, according to Pierre Pineau of Robert Walters Singapore. Cost-cutting initiatives within the banking and financial services sector meant modest hiring activity, yet salary increases of 3–5% were reported, and further rises can be expected in 2018.

South America – anti-corruption efforts rule the day

In Brazil, new legislation like the Brazilian Clean Companies Act (BCCA) led to a significant increase in demand for risk and compliance management professionals. The act, which aims to hold companies responsible for acts of corruption of their employees, is part of a slew of anti-corruption measures that have created legal, compliance, and regulatory complexities for corporations. “The outcomes for firms are very challenging within this new compliance and governance environment, but it has created some recession-proof careers,” said Robert Walters’ Brazil office. Risk professionals with a legal understanding are particularly sought after in light of recent legislative initiatives like the BCCA.

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