Overview
The average salary increase secured by risk managers accepting new positions was 15% in the second half of 2008. This is a significant drop from the peak of 24% in 2007.
As the number of “immediately available” candidates grew throughout the year, expectations became easier to manage. Candidates from investment banking, for example, have become more flexible about their salary requirements. Many were pleased to move for the same salary or even prepared to take a small drop to get back into work. Against that, those who were under no pressure to move wished to be fully compensated for the perceived risk of changing employer.
Bonus levels are likely to be significantly lower for 2008 and, consequently, many companies no longer feel the pressure to offer guaranteed or sign on bonuses in order to hire their preferred candidate.
Outlook for 2009
Salary increases are likely to be subdued in 2009 and, given the economic backdrop, many risk managers will be pleased to get through 2009 with a secure job. Discretionary bonuses, particularly those related to corporate performance, will fall. The economy has entered territory that it has not been in for 15 years.
Salary survey
Barclay Simpson analyses the salary data that accumulates from the placements we make in the UK. This provides a useful guide to salaries and salary trends for risk professionals.
To give as accurate a picture as possible, we have taken a range of different risk management profiles and provided an approximate salary range that they could realistically expect to earn. The profiles are for good rather than exceptional individuals and take no account of other benefits in addition to salary that normally accrue to risk professionals, such as bonuses, profit sharing arrangements or pension benefits. The ranges indicate London salaries, which are generally 10-15% higher than provincial salaries.
1-5 years’ experience
| Credit Risk |
Salary |
Credit Risk Reporting, Corporate / Investment / Retail Banking
Responsibility for compiling MI and reports for use by board, regulators, rating agencies,sales / trading and credit department. |
£35-£45,000 |
Credit Analyst, Corporate Banking
Graduate with banking experience. Middle office role on Corporate or FI portfolio. |
£40-£60,000 |
Credit Analyst, Project / Leveraged Finance
Graduate with specific banking experience in an area of specialised lending. Middle / front office. |
£40-£70,000 |
| Market Risk |
Salary |
Market Risk Analyst
Graduate in Mathematics or related discipline (ideally with MSc). Experience in Market Risk including VaR and stress testing. Excel & VBA skills |
£35-£55,000 |
Risk Analyst - Model Validation
MSc in Mathematics or related discipline. Risk Management background with experience in risk quantification techniques and managing the validation process for new valuation models. Strong technical skills ( Excel, VBA). |
£38-£60,000 |
Quantitative Analytics / Analyst
PhD in Maths, Physics or Engineering. Excellent technical and mathematical skills. Experience in creating and building quantitative models according to front office trading requirements. |
£55-£80,000 |
| Operational Risk |
Salary |
Risk Analyst, Investment Management
Graduate within operational risk in investment management. |
£35-£45,000 |
Operational Risk Analyst, Insurance
Numerate school leaver with a general awareness of risk and control methodologies in the insurance or life sector. |
£30-£40,000 |
Group Operational Risk Analyst, Retail Banking
Graduate with practical experience of Group operational risk management policies and procedures within a retail bank. |
£35-£45,000 |
5-10 years’ experience
| Credit Risk |
Salary |
Credit Manager
Graduate with credit counterparty analysis experience from the banking sector, with sanctioning authority or line management. |
£60-£80,000 |
Counterparty Credit Risk Manager, Investment Bank
Graduate with credit risk experience from the banking sector. |
£50-£60,000 |
AD Credit Officer – Private Banking / Wealth Management
Good wealth product knowledge, degree educated and with some level of lending discretion. |
£55-£60,000 |
Credit Sanctioner - Investment Banking
Graduate with strong focus on credit, often sector or product specific and with significant level of lending discretion. |
£70-£90,000 |
| Market Risk |
Salary |
Market & Liquidity Risk Manager, Banking
Value at Risk PhD working on the capital allocation programme within the insurance sector. |
£65-£75,000 |
Portfolio Risk Manager, Fund Management
Graduate with risk management experience with the Big 4 and the fund management industry. |
£65-£75,000 |
Market Risk Manager
Graduate in Maths or related discipline. Ideally MSc. Experience in providing risk analysis and commentary for senior management, investigating risk profiles, improving risk capture. Strong Access, Matlab, Excel & VBA skills. |
£65-£80,000 |
| Operational Risk |
Salary |
Operational Risk Manager, Investment Banking
Graduate accountant with experience in audit and risk control in investment banking. |
£65-£75,000 |
Senior Risk Manager, Retail Banking
Graduate accountant with banking audit and operational risk management experience. |
£60-£80,000 |
Group Operational Risk Manager, International Banking & Financial Services
Graduate with banking and risk management experience responsible for developing the operational risk profile of the overseas business units. |
£55-£65,000 |
10+ years’ experience
| Credit Risk |
Salary |
Credit Director – Corporate Bank
Degree or ACIB qualified, clearer trained and holding a significant level of individual lending discretion and credit committee member. |
£80-£90,000 |
Head of Credit Risk - Retail Bank
MSc qualified as a minimum, highly technical and often from a statistical background. No longer hands on, but likely to be from a scorecard development background. |
£80-£110,000 |
Head of Portfolio Analytics
PhD in a quantitative subject. Significant experience in the area, including scorecard development. Comfortable managing a large team. |
£80-£140,000 |
| Market Risk |
Salary |
Head of Market Risk Control
Graduate with experience in market risk control in investment banking, including VaR analysis, stress testing, scenario analysis, market risk reporting and project work. |
£75-£110,000 |
Head of Market Risk Management
MSc graduate in Maths or related discipline. Accomplished in all aspects of market risk and management including initiating and leading market risk projects. Ability to develop strong relationships with front office and relevant business heads. Investment banking background. |
£75-£140,000 |
Head of Model Validation and Quantitative Analytics
PhD graduate in Maths or related discipline. Investment banking background with experience in both quantitative analytics and model validation. |
£80-£160,000 |
| Operational Risk |
Salary |
Head of Operational Risk Framework – Private Bank
Graduate with strong operational risk MI and reporting experience from the financial services sector. Previous management experience. |
£70-£90,000 |
Global Head of Operational Risk – Investment Bank
Graduate and qualified CA with investment banking experience in operational risk and group internal audit. |
c.£125,000 |
Chief Risk Officer - Retail Banking
Economics graduate with central bank, merchant bank and retail banking experience in all disciplines of risk. |
c.£150,000 | |
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