RiskManagement Treasury 2016

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


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

e: [email protected]

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


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


Tim Barnett:

t: 020 7776 5928



Harry May:

t: 020 7776 5968



Credit Risk Management , Analytics & Methodology

Role Salary (£)

Likely

salary uplift

(%'age)

Approx

2015 bonus

(%'age)

Forecast

2016

bonus

(%'age)





(or equivalent) 75,000-105,000 2-5 15-25 15-30



Quantitative Analysis

Role Salary (£)

Likely

salary uplift

(%'age)

Approx

2015 bonus

(%'age)

Forecast

2016

bonus

(%'age)





(or equivalent) 80,000-120,000 2-5 20-30 20-30




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


Tim Barnett:

t: 020 7776 5928



Harry May:

t: 020 7776 5968



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


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


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


Tom Danaher:

t: 020 7645 1456




Nicola Waizeneker:

t: 020 7776 5953



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


Tom Danaher:

t: 020 7645 1456


Capital Management & Regulation

Role Salary (£)

Likely

salary uplift

(%'age)

Approx

bonus

2015

(%'age)

Forecast20

16 bonus

(%'age)


equivalent) Up to 55,000 0-2 0-10 0-15




(or equivalent) 70,000-100,000 0-5 5-15 10-25



ALM, BSM, Funding & Risk

Role Salary (£)

Likely

salary uplift

(%'age)

Approx

bonus

2015

(%'age)

2016

expectatio

n

(%'age)


equivalent) Up to 60,000 0-3 10 12


President (or equivalent) 60,000-75,000 0-3 10 12


(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


Nicola Waizeneker:

t: 020 7776 5953




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)


equivalent) Up to 55,000 0-3 0-10 5-15




(or equivalent) 70,000-105,000 2-5 10-20 10-25




Tom Danaher:

t: 020 7645 1456



Nicola Waizeneker:

t: 020 7776 5953



RiskManagement Treasury 2016

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