Risk management has been thrust to the top of the GCC financial institutions’ agendas this year, and experts in this space are slowly being pulled out of the doldrums to become key figures – at least within some organisations.

According to a study into Middle Eastern banks’ risk management practices, the profile of the humble risk officer is growing. Seven out of ten respondents to a recent KPMG survey said that risk departments are gaining influence within banks.

However, firms in the region have yet to tackle the lack of risk expertise, or the comparatively modest salaries offered by banks to experts in this sector, reckons the report.

Ben Hunter, head of the Middle East at specialist risk recruiters GRS Group, insists he’s never seen such demand for risk managers in the region.

“Risk management is something that has grown steadily over the past two years in the Gulf, but all of a sudden has exploded,” he says. “It’s not just the commercial banks that are growing their teams, but also asset managers and sovereign wealth funds.”

The lack of talent locally has lead to firms to look towards international markets. However, in spite of heavy redundancies in other areas of banking and financial services, risk has remained a relative haven of hiring within the US and Europe. So how are Gulf firms luring them across?

James Stephenson, senior consultant within risk management at financial headhunters Hamilton Chase, says: “There’s not necessarily a greater monetary incentive, but rather the chance to work for big companies in the early stages of developing their risk infrastructure, which is a more exciting proposition.”

But Hunter reckons a chief risk officer within the right firm can earn upwards of 120,000 dirhams a month. However, this very much depends on the organisation, he says.

“Some organisations view it as very much a part of the senior management team and salaries reflect that, whereas others see it as a role necessary just to comply with regulations.”