By Mark Reece*
Recruitment in risk and compliance has been steady in 2012 due to recent regulatory reforms and changes to existing legislation.
The increased focus on strengthening internal risk frameworks has led to some professionals moving from internal audit into business-aligned risk roles, and these internal secondments and promotions have led to an increase in replacement hiring.
Improvements to the Basel III framework, the introduction and implementation of the Future of Financial Advice (FoFA) and Dodd-Frank reforms have forced companies to examine their risk frameworks. This has greatly increased the need for risk specialists to ensure firms have adequate staff to manage the changes and subsequent effects.
Specialist professionals are not only greatly sought after, but they are also well-remunerated. Those in highest demand include:
1) Regulatory compliance professionals who advise and educate firms on their obligations and ensure that they, and their employees, are operating within regulatory guidelines.
These analysts need to have extensive knowledge of the companies they work for, as well as the various laws and regulations they must abide by. Compliance professionals act as a company’s preventive-measures team to protect it from potential lawsuits or fines. If the organisation is not operating within guidelines, a course of action must be designed to remedy the behaviours that are in violation.
Regulatory compliance professionals should have a minimum of a bachelor’s degree, but many employers prefer to hire individuals with a master’s degree or who have certification within the field. As laws and regulations are subject to change, compliance analysts may be required to take courses at various points in their career.
A junior compliance professional can expect a salary of between AU$70k and AU$90k, but those with five years’ or more experience can earn AU$130k to AU$200k+.
2) Subject matter experts in the Foreign Account Tax Compliance Act (FATCA), Basel III, and Anti-Money Laundering (AML).
These people communicate knowledge of a topic to other professionals within an organisation. They often act as consultants to firms that need to produce educational courses, publish training material or roll out new rules and regulations. They play a pivotal role in establishing a company’s quality assurance measures.
As FATCA, Basel III, and AML regulations are fairly new, professionals who are knowledgeable in these areas (especially those who have worked internationally) are well remunerated.
A junior can earn AU$70k to AU$90k, with salaries then rising to between AU$130k and AU$200k+.
3) Operational risk managers who focus on strengthening existing risk management frameworks.
Managing risk is a continual, cyclic process, which includes assessment, decision making, and the implementation of risk controls, resulting in acceptance, mitigation, or avoidance of risk.
They must be good communicators as they are responsible for instructing on operational risk mitigation procedures. They will also need to compile and publish supporting documentation to create company awareness. Operational risk management skills may vary depending on the industry and the company. However, most firms require professionals to hold a minimum of a bachelor’s degree in accounting, risk management, auditing, or finance.
An operational risk manager will start on AU$60 to AU$85k, and those with five years’ experience or more can earn between AU$130k and AU$250k +.
Risk and compliance professionals are generally well retained by their employers and as a result, finding great people with relevant experience can be challenging.
Experienced professionals may be able to demand higher remuneration, but there is also great value placed on career progression and job security.
Many employees are still wary of market conditions and may be hesitant about changing jobs. The changing regulatory landscape should continue to fuel the demand for risk and compliance professionals in the Australian banking sector throughout the rest of this year and 2013.
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Mark Reece, is a manager, risk and compliance, at Robert Walters. The views expressed are his own and not those of eFinancialCareers where this post first appeared.
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