Risk Talent Associates expects that risk consulting will remain vibrant as three-quarters of survey respondents expect their risk management group to grow in size during the next year. Michael Woodrow, founder and President of Risk Talent Associates states, âWe expect the risks groups at consulting firms to grow significantly in 2008 and forward. With the significant losses on Wall Street in the past few months, large and mid-size financial services firms will want to dig deep to ascertain how and why their risk management systems and/or models failed them. The consulting firms will see a spike in work, and this will drive hiring and compensation.â
Consulting remains an attractive career opportunity for professionals to learn a broad range of skills and stay abreast of industry best practices in risk management and compliance. This segment shows the lowest rate of respondents changing jobs, at 18% within the last two years, compared to 20-30% in previous salary surveys by Risk Talent Associates across capital markets, asset management and other segments. Of those who changed jobs, 40% moved from other consulting firms. Within risk consulting, the highest paid professionals are based in Europe, the US West coast and New York over other geographic regions, and those with a focus on enterprise risk rather than credit risk or market risk exclusively.
The market for risk management at major corporations also remains strong, with well over 90% of respondents reporting that their risk groups will remain the same or increase in size over the next year. In corporate risk, 20% report having changed jobs in the last two years, while 30% indicate they are likely to change jobs in the next two years.
The risk consulting and corporate risk compensation surveys are the latest in a series of reports across numerous industry sectors, including capital markets, asset management, energy and software/technology. Risk Talent Associates expects to release their last annual update for risk managers in financial compliance before the end of the year.