You are visiting this website from: US

2018 Risk Management Salary Guide

Risk Management Salary Guide

Written by Dominic Bareham
Feb 19, 2018
Submitted by Dominic Bareham on Mon, 02/19/2018 - 05:28

Our 2018 Risk Management Salary Guide offers key recruitment insights and salary ranges for risk management professionals in Sydney.

Contents: 
Risk Management Salaries | Risk Management Contract Rates
Commentary on Risk Management Roles and Remuneration in Australia for 2018

Risk Management Salaries (Per Annum ex. Super)

Role Analyst / Senior Analyst Manager Senior Manager Head
Operational Risk - Financial Services $70,000 - $95,000 $100,000 - $135,000 $130,000 - $180,000 $180,000 - $280,000 +
Risk - Commerce & Industry $70,000 - $90,000 $100,000 - $135,000 $130,000 - $160,000 $170,000 - $230,000 +
Investment Banking Operational Risk $90,000 - $110,000 $130,000 - $150,000 $160,000 - $190,000 $250,000 +
Technology Risk $90,000 - $110,000 $120,000 - $160,000 $160,000 - $190,000 $200,000 +
Credit Risk $70,000 - $95,000 $100,000 - $135,000 $130,000 - $180,000 $180,000 - $280,000 +
Market Risk $90,000 - $110,000 $135,000 - $160,000 $160,000 - $190,000 $200,000 +
 

Risk Management Contract Rates (Per Day ex. Super)

Role Analyst / Senior Analyst Manager Senior Manager Head
Operational Risk $350 - $500 $500 - $650 $600 - $900 $1200 +
Credit Risk $350 - $500 $500 - $650 $600 - $900 $1200 +
Market Risk $400 - $600 $600 - $750 $750 - $1000 $1200 +
Tech Risk $400 - $600 $600 - $750 $750 - $1200 $1400 +
 

Risk Management Roles and Remuneration in Sydney for 2018

While the risk and compliance market isn't necessarily experiencing growth, there has been a shift in resourcing focus to support regulatory drives and organizational updates to operating models. The number of candidates searching for new opportunities is now matching the demand for generalist risk management professionals. 

The industry is seeing most hiring for candidates with 3-5 years of experience and also those with 12+ years of experience. In 2017, the most in-demand roles were within cyber risk and data security, regulation and outsourcing. Opportunities have been created in all of these areas. In 2018, we can expect to see increased demand for technology risk roles at all levels, risk managers with project or change management experience, and business facing, second line of defence operational risk at all levels.

Last year, the industry was finding it difficult to recruit technology risk professionals due to the updated regulatory requirements through APRA. This has continued this year, with few available candidates. The banks are increasingly head hunting high numbers of technology risk professionals and IT auditors from the Big 4 consulting firms. This has led to an increased demand for consultants from both domestic and international locations to fill the gap and manage workloads.

Experienced candidates are in high demand, particularly those who are experts in their fields. Candidates with experience in insurance and retail banking are consistently sought after due to regulatory pressures in these areas. 

Unfortunately, recruitment processes have been limited by cost constraints which have slowed down the overall process. This has also restricted some organisations which are unable to pay the salaries that would enable them to attract the best talent.  

We've seen an increase in demand for candidates with project and change management experience through 2017. This is due to larger projects being run and is driven by regulatory and risk management enhancements. APRA announced that they would be doing industry-wide reviews in the technology and vendor risk spaces. This increased organisations' awareness of the potential threats when engaging with third parties, and the importance of doing capability assessments with their suppliers.

65% of the roles we recruited across risk were in the tech and cyber space last year. The remaining 35% was as a result of general attrition, and predominantly at the analyst and manager level. Technology risk is growing and we can expect it to remain important as it continues to evolve with its ever-emerging risks. Organisations need to be prepared to consider candidates with pure technology backgrounds as long as they can demonstrate that they understand risk methodology, and can use their tech space knowledge in the interview process. 

Clients are continuing to become more conscious of inclusion and diversity. Females transitioning internally within external organisations and neighbouring teams are seeing increased awareness and support. Operational risk has a fairly even mix of male and female employees, although men continue to hold more of the top spots- something that hasn't changed from previous years. While credit risk also has a good balance of gender, market risk is still predominantly male-dominated.

Most candidates for risk management are sourced locally. Clients prefer local experience, hiring those already on the ground with awareness of local regulatory requirements. However, international candidates are still entering the market in Australia, often with more success when applying directly to roles rather than using a recruitment agency. Candidates who have experience working in the UK are in the strongest demand from offshore locations as the UK Risk environment is more mature. Australian candidates also regularly enter the UK Risk market through contract roles during their working holiday visas.   

For contract and temporary roles, recruitment agencies are still being widely used, along with internal staffing partners, particularly when recruiting areas like technology risk or operational risk. Senior roles are also being advertised externally and filled by external talent as opposed to internal candidates. 

Along with the increased demand for tech risk candidates, we've seen an uplift in salaries for top talent in this space. Competition for the strongest candidates also remains high. Overall, salaries have remained stable, and increases are uncommon in Risk. We predict little change in 2018. 

However, the cyber and technology risk space is seeing salary increases. Candidates who specialise in this area can expect up to 30% higher salaries compared to generalist Risk Managers with the same level of experience. This is a highly in-demand skill set and the first line of defence for many businesses. Due to this strong demand, organisations are prepared to pay more to attract experienced candidates. Risk professionals are also in a better position to negotiate their salaries in the future if they've devoted time to networking and building contacts within the industry.