UK
Reality has caught up with risk managers. In November last year, riding high on their new elevated status, 12% expected a bonus double the size of 2008′s payout, and nearly half anticipated more this year than last. Now, however, according to a survey by recruiters GRS, the largest proportion of people believe they will get nothing.
GRS surveyed 512 UK-based risk managers and found that 69% now expect a smaller bonus payout than last year. A somewhat delusional 3% are still rubbing their hands together at the prospect of a payout double the size of last year’s.
“Risk professionals’ confidence was riding high. Not anymore. The City is getting real. Now almost half of the respondents don’t even expect a bonus in 2009, let alone one equal to or greater than last year’s,” says GRS consultant David Butters.
Bonus expectations compared to the previous year (% respondents):
The problem with being a risk manager is that you are most in demand in tough times like these, when the bonus pool is running dry.
As a headhunter I see that for every experienced candidate who wants to move towards risk, I see 20 wanting to get out.
Bunch of suckers with their 5 figure bonuses. Risk Mgmt really has to be the worst place in the bank for intellect, hard work & contribution vs reward.
20 to 1 yeah right I really am a recruiter and Risk is still an area where people want to go to
Recman is right people *do* want to go to risk.
They just don’t want to stay there…
For a large %, Risk is somewhere to wait out the storm so of course people are quite happy to say “I am really committed to this new direction in my career”. They also are more interest in career development than money, fully support the bank diversity policy, see compliance with the letter and spirit of regulations to be critical, and of course expect to stay at their new firm for the long term because they understand embace the CEO’s vision for the future.
Very interesting discussion, since I am actually switching into risk. (coming from an IT consultancy)
“As a headhunter I see that for every experienced candidate who wants to move towards risk, I see 20 wanting to get out.”
My quation:
Why are people leaving risk management? What’s so bad about it?
Thank you
Stefan, in response to your question, there are too many people with only a few years experience working in this field. a good risk guy should have at least 10 years experience and seen a few wobbles in the market. the industry does not want another Keele university grad with a 2:2 in geography with less than 5 years experience. the latter sort of poeple are a drag on risk departments and are high maintenance as they need to be nursed through their job.
thanks for your response – but I still do not know what is so bad about risk management?
I’m a head of risk. Yes it sucks. But I’ve done it for 8 years now after switching from trading and it’s slowly starting to work for me. Still no respect and get screwed during the bonus round. But I can see changing for the better for experienced people like myself these days!