Point-based risk and regulatory optimisation efforts will need to go beyond one-off project efforts. Efforts must transit to a state where coordinated optimisation across the ecosystem’s chain of activities can be done on a business-as-usual basis.
The industry is at the halfway mark in delivering initiatives to mitigate cost impact and complexities in the new market environment. Despite best efforts to harmonise, coordinate, and standardise supervisory requirements, regulatory fragmentation is likely to be an immediate feature of the new environment.
Firms will need to be smarter in understanding and triangulating the drivers of the profitability and cost equation. Beyond current efforts, firms will need to focus on enhancing both strategic and operational levers to mitigate the potentially corrosive effects from the structural changes. In this regard, opportunities and threats in the financial services industry are inextricably tied to risk practices and technology infrastructure. Strategic investments in driving cultural, operational, and technology changes will be key determinants to successful execution.
The risk recruitment market, along with the economy and wider employment market, continues to improve. Companies are now firmly focused on the reasons why they should recruit. Redundancies are rare and are now the result of up-skilling or the result of mergers or takeovers.
We can identify three main trends in the risk industry in terms of recruitment:
– A competitive market
– Regulatory reporting creating vacancies
– A more creative approach required