Your quarterly update on the Risk & Compliance market, where we provide you with insights from both the previous and upcoming quarters.
What were the market trends for last quarter?
Market Trends last quarter centred around: Financial Risk, Operational Risk and Compliance Assurance, closely followed by Regulatory risk, Governance and Cyber risk were the busiest areas within Risk & Compliance last quarter.
We are seeing that companies and hiring managers are starting to interview and subsequently hire people from outside of their industry, this is driven by skills and experience shortage and the value of broad experience.
With this there is a strong demand for candidates with risk consulting experience from the big 4 chartered firms. We are also seeing businesses put an emphasis on personal attributes such as negotiation and diplomacy skills in order for candidates to be successful.
This is because there is a real need for risk management to extend beyond the policy design and development by engaging and negotiating with other departments to determine what’s possible, convince staff to be risk-aware, liaise with auditors, and demonstrate your value add to your bosses.
What are the major skills in demand?
The top three skills in demand in Risk & Compliance are:
Problem Solving Skills: Risk management is a strategic business. There is an expectation that risk professionals take on responsibility to drive a good risk culture across the business. A large majority of senior risk professionals are often tasked with designing risk management solutions and processes for an entire organisation.
Naturally, this means that Risk & Compliance professionals need to be outcomes-focused and be comfortable engaging with the business to understand its challenges and think commercially about finding risk solutions.
Analytical Skills: At the centre of risk management is analysing risks, calculating the potential effects and balancing them against the company’s overall risk appetite. We are seeing businesses look to data to gain better insights and more accurate reporting.
Communication Skills: A key part of risk management is ensuring everyone within the business identifies and understands significant risk, are risk aware, and are effectively sharing the company’s risk management strategy. This means Risk & Compliance professionals need to be capable of engaging with and developing rapport and relationships across different audiences - from the board of directors right down to individual employees.
What are the skill gap shortages?
In any new risk role you have to identify and estimate the risks to a company, you have to understand how the business works and all the different internal and external factors that can affect its performance.
We are seeing top talent not only move between competitors but, now more than ever, also moving outside of their respective industries. There is therefore a skill gap shortage in Business Understanding, including industry and product knowledge.
What are organisations doing to attract the best talent?
In order to attract and retain the best talent, employers are promoting internal secondments and transfers to ensure they appeal to broadening someone's skill set and retain the business and product knowledge within the organisation.
What is the outlook for the next quarter?
Next quarter I believe will be busy at least until mid December. This will be the trend across financial services and larger organisations with smaller SME’s possibly dropping off earlier.
With the experience and knowledge we have acquired on behavioural economics and behavioural science in the last few quarters, for example; data analytics and predictive modelling within banks, we expect a number of industries will begin to change the way customers perceive them.
Within financial services, there is a real opportunity for banks to transform their business models from Financial service providers, to concierges that are able to help customers navigate life.
This, in conjunction with open banking, has the potential to dramatically change the landscape of services that banks provide and most importantly, could dramatically shift the role a bank plays in its customers life.
Whether this can be done in the next quarter, or 12 months, is another story...