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THE OUTLOOK
FOR 2016
Risk, Treasury and Liquidity
Financial Sector Employees | The outlook for 2016
Contents
Market Risk / Credit Risk - Permanent 1-2
Risk Management – Temp / Interim 3
Treasury & Liquidity - Permanent 4–5
Treasury & Liquidity – Interim 6
Financial Sector Employees | The outlook for 2016
Risk Management – Permanent
Our Risk team specialises in both the Credit and Market Risk disciplines across all levels for
financial services organisations across London. We specialise in servicing clients with permanent,
contract and temporary solutions to their recruitment requirements.
2015 has been a buoyant year within the risk management space.
2015 Trends
This year the risk market has been all about regulation change. Whether it be in market or credit
risk, most of the external recruitment activity has been brought about by the implementation of new
one or more new regulations.
The key hiring areas have been;
•Front Office Trading Book (FRTB)
•Counterparty credit risk (CCAR)
•Stress Testing / FDSF
•Retail Credit Risk
•BCBS239
The depth and scope of these changes has meant that clients have been sourcing for a wide range
of candidates across both business as usual risk functions through to the creation of specific
projects team.
This has lead to a slightly different approach when hiring candidates – with a real focus on senior
subject matter experts rather than risk generalists.
Within Market risk the key initiatives have been around FRTB, the quality of risk data and
subsequent changes to risk models. Candidates with strong methodology track records have
tended to be targeted for these roles – people who have normally been working in BAU teams
move to work alongside technology business analysts – to help design and test the models.
We have also seen the majority of organisations review their risk framework and move to get more
robust controls and structure in place. Again the target has tended to be senior BAU risk
professionals who have worked in designated project teams to help design and document
scenarios and frameworks for the business.
1
For more information on perm, contact
Tim Barnett:
t: 020 7776 5928
For more information on interim, contact
Harry May:
t: 020 7776 5968
w: www.michaelpage.co.uk/bankingandfinancialservices
Market Risk Management, Analytics & Methodology
Role Salary (£)
Likely
salary uplift
(%'age)
Approx
2015 bonus
(%'age)
Expected
2016
bonus
(%'age)
Analyst / Associate (or equivalent) 40,000-60,000 0-3 5-10 10-15
Manager / Associate Vice
President (or equivalent) 55,000-75,000 0-3 10-15 15-20
Senior Manager / Vice President
(or equivalent) 75,000-105,000 2-5 15-25 15-30
Senior VP / Junior Director 105,000-125,000 2-5 20-30 20-40
Director / Department Head 125,000-175,000 2-5 20-40 20-50
Financial Sector Employees | The outlook for 2016
Risk Management - Permanent
Within investment banking, credit risk has been the main area of headcount growth. There has
been continued demand across a number of areas;
CCAR – organisations have focussed on hiring methodology candidates to help review model
detail
Collateral Modelling – hiring counterparty specialists to review changes in netting and collateral
methodology. Candidates have tended to also have good knowledge of Basel III and CRDIV and
come from regulatory driven backgrounds
ICAAP – Capital planning across both reporting, documentation and analytics
On the retail side we’ve seen continual demand for strong credit risk modelling candidates. A
number of organisations have been increasing headcount to deal with the demand around
reshaping retail risk models.
The focus this year has been for a more quantitative candidate – someone who can build and
validate the models – whereas previous years it had been more about review of risk data quality.
2
For more information on perm, contact
Tim Barnett:
t: 020 7776 5928
For more information on interim, contact
Harry May:
t: 020 7776 5968
w: www.michaelpage.co.uk/bankingandfinancialservices
Credit Risk Management , Analytics & Methodology
Role Salary (£)
Likely
salary uplift
(%'age)
Approx
2015 bonus
(%'age)
Forecast
2016
bonus
(%'age)
Analyst / Associate (or equivalent) 40,000-60,000 0-3 5-10 10-15
Manager / Associate Vice
President (or equivalent) 55,000-75,000 0-3 10-15 15-20
Senior Manager / Vice President
(or equivalent) 75,000-105,000 2-5 15-25 15-30
Senior VP / Junior Director 105,000-120,000 2-5 20-30 20-40
Director / Department Head 120,000-185,000 2-5 20-40 20-50
Quantitative Analysis
Role Salary (£)
Likely
salary uplift
(%'age)
Approx
2015 bonus
(%'age)
Forecast
2016
bonus
(%'age)
Analyst / Associate (or equivalent) 50,000-65,000 0-3 10-20 10-20
Manager / Associate Vice
President (or equivalent) 65,000-80,000 0-3 15-25 15-25
Senior Manager / Vice President
(or equivalent) 80,000-120,000 2-5 20-30 20-30
Senior VP / Junior Director 120,000-150,000 2-5 20-40 20-40
Director / Department Head 150,000-250,000 2-5 30-60 30-60
Financial Sector Employees | The outlook for 2016
Risk – Temporary and Interim
The interim market within risk management remains buoyant and in terms of role specifics, it has
effectively mirrored the permanent market. Within the change management and project world, the
trends have shifted a little. As a number of these projects run aside consultancies in the financial
services organisations, the focus on hiring has been for a more subject expert candidate (SME). It
has enabled strong business as usual (BAU) candidates to move out of a line role and in to a
project. This has been an attractive option for a number of candidates and that's why we have
started to see more and more people more from permanent roles in to interim assignments.
The demand for these specialist candidates has raised the bar slightly on day rates (see table) and
they are probably tracking around 10-20% up on 2014.
The table below is based on vacancies looking at between junior associate and junior director level
– classically levels where the majority of temp and interim recruitment falls.
3
For more information on perm, contact
Tim Barnett:
t: 020 7776 5928
For more information on interim, contact
Harry May:
t: 020 7776 5968
w: www.michaelpage.co.uk/bankingandfinancialservices
Role Low (£) Mid(£) High (£)
Market Risk Management 400 550 650
Quantitative Developer 500 650 850
Market Risk Reporting 250 400 550
Credit Risk Reporting 250 400 550
Market Risk Methodology 350 500 650
Credit & Counterparty Risk Methodology 350 550 750
Stress Testing 400 600 800
Economic Capital (ECR) 400 600 750
Projects – Market & Credit Risk
Role Low (£) Mid(£) High (£)
PMO 250 350 500
Project Analyst (MI) 200 300 400
Business Analyst 450 550 700
Project Manager 650 750 850
Program Manager 800 900 1000
Financial Sector Employees | The outlook for 2016
Treasury & Liquidity – Permanent
Permanent
2015 has been a buoyant year in the financial services sector with the majority of organisations
bolstering their teams’ treasury & liquidity functions to deal with additional regulatory demand.
We have seen continued hiring and headcount growth in a number of business areas – especially
liquidity risk where the main business demand has been.
This has included all areas and aspects of liquidity – funding, assets and contingency planning –
and in the main due to effects of regulatory implementations by the way of IFRS7 / IFRS9.
In addition there has been continued investment in to ALM business area – again, across all
aspects of interest rate risk, FX risk, liquidity risk and funding.
A number of organizations have put ALM in to risk management allowing relatively smooth transfer
of market risk and traded / non-traded risk managers in to this business.
In close link we have seen continued demand for regulatory risk and capital specialists covering
projects related to Basel III, CRD4 and ICAAP.
A number of these have not only been looking at regulatory initiatives but also the development of
risk frameworks – focus on getting more rigor and controls within the treasury business areas.
There has been opportunity to hire people from regulatory finance, credit risk and operational risk
disciplines.
And finally there has been a push for treasury controls and assurance candidates to work alongside
the risk and ALM specialists focusing on internal processes and reporting.
Again candidates have tended to have specialist treasury knowledge and come from treasury
backgrounds - rather than having audit or compliance track records. We have also seen internal
audit function staking treasury professionals into this are to strengthen their knowledge base.
We believe there will be an opportunity in 2016 to add audit professionals in to these business
areas.
4
Liquidity risk & Reporting
Role Experience Salary (£)
Likely
salary
uplift
(%'age)
Approx
bonus
2015
(%'age)
Forecast
2016
bonus
(%'age)
Analyst to Associate (or
equivalent) 1-4 years’ Up to 55,000 0-3 0-10 0-10
Manager / Associate Vice
President (or equivalent) 5-7 years’ 55,000-70,000 0-3 0-10 10-20
Senior Manager / Vice
President (or equivalent) 8-14 years’ 70,000-105,000 2-5 10-20 10-25
Senior VP / Junior Director 10-15 years’ 110,000-
125,000 2-5 10-20 15-30
Director / Department Head 12+ years’ 120,000-
175,000 2-5 20-30 20-50
For more information on interim, contact
Tom Danaher:
t: 020 7645 1456
w: www.michaelpage.co.uk/bankingandfinancialservices
For more information on perm, contact
Nicola Waizeneker:
t: 020 7776 5953
Financial Sector Employees | The outlook for 2016
Treasury & Liquidity – Permanent
Most projects we have seen in the treasury space have been involved in risk or financial model
stress testing both in investment, retail and corporate banking businesses.
This has been one of the tougher years in terms of candidates – the continued demand for
specialists has meant that the market has become candidate short as businesses compete for key
talent in the market.
To save competing with the same candidate pool, some clients have adopted a strategy to be more
flexible on track record – i.e. hiring market risk candidates in to liquidity, taking front office
candidates in to DCM treasury roles - or hiring more junior candidates who can grow in to the role.
We have also seen an increase in clients recruiting from outside of the UK and supporting
relocation from mainland Europe.
This hasn’t been easy, and isn’t always possible as the majority of regulatory driven hiring has
finite, and short-term deadlines. However with treasury business remaining an attractive area to
work in, its been a productive route for companies that have been able to take this approach.
5
For more information on interim, contact
Tom Danaher:
t: 020 7645 1456
Capital Management & Regulation
Role Salary (£)
Likely
salary uplift
(%'age)
Approx
bonus
2015
(%'age)
Forecast20
16 bonus
(%'age)
Analyst to Associate (or
equivalent) Up to 55,000 0-2 0-10 0-15
Manager / Associate Vice
President (or equivalent) 50,000-70,000 0-2 5-15 10-20
Senior Manager / Vice President
(or equivalent) 70,000-100,000 0-5 5-15 10-25
Senior VP / Junior Director 100,000-120,000 2-5 10-25 10-30
Director / Department Head 120,000-175,000 2-5 20-30 20-40
ALM, BSM, Funding & Risk
Role Salary (£)
Likely
salary uplift
(%'age)
Approx
bonus
2015
(%'age)
2016
expectatio
n
(%'age)
Analyst to Associate (or
equivalent) Up to 60,000 0-3 10 12
Manager / Associate Vice
President (or equivalent) 60,000-75,000 0-3 10 12
Senior Manager / Vice President
(or equivalent) 80,000-110,000 0-4 15 15
Senior Vice President 110 to £130,,000 0-4 20 20
Director / Department Head 120,000-175,000 0-4 25 25
For more information on perm, contact
Nicola Waizeneker:
t: 020 7776 5953
w: www.michaelpage.co.uk/bankingandfinancialservices
Financial Sector Employees | The outlook for 2016
Treasury & Liquidity
Treasury - Interim & Temps
Whilst the main focus has been hiring permanent staff, the interim market remains a viable and
attractive option for experienced treasury professionals
The trends have aligned with the permanent market – clients have focussed on hiring specialists in
liquidity regulation and risk, stress testing and capital directives
We have even seen, with candidate challenges in the perm market, that senior interims are hired
as short / medium term solutions to those permanent jobs.
There has been a big push for senior liquidity specialists especially in the challenger banks. They
have been active in hiring ex manager / director level candidates to act as interim treasury
consultants helping with all aspects of liquidity risk, regulation and compliance.
As with the permanent market, specialist senior candidates are in high demand so this has pushed
up candidate rates – we would say on average day rates are up 10% on 2014.
We expect these trends to continue in to 2016.
6
Treasury - Temp & Interim
Role Low Mid High Head of
team
Liquidity reporting 300 450 600 750
Liquidity risk 350 550 750 1000
ALM / Funding 400 600 750 1000
Traded / Non Traded Risk 300 500 700 900
Capital Management 400 550 750 900
Treasury Assurance 350 500 650 750
Stress Testing 450 600 750 1000
DCM 450 600 750 1000
Treasury Controls & Assurance - Perm
Role Salary (£)
Likely
salary uplift
(%'age)
Approx
bonus
2015
(%age)
Forecast
bonus
2016
(%age)
Analyst to Associate (or
equivalent) Up to 55,000 0-3 0-10 5-15
Manager / Associate Vice
President (or equivalent) 55,000-70,000 0-3 5-15 10-20
Senior Manager / Vice President
(or equivalent) 70,000-105,000 2-5 10-20 10-25
Senior VP / Junior Director 105,000-120,000 2-5 10-20 10-25
Director / Department Head 120,000-150,000 2-5 20-30 20-40
For more information on interim, contact
Tom Danaher:
t: 020 7645 1456
For more information on perm, contact
Nicola Waizeneker:
t: 020 7776 5953
w: www.michaelpage.co.uk/bankingandfinancialservices