LOB Salary Guide RISK v5 SPREADS - Flipbook - Side 9
09
Key factors affecting risk in 2023
Over the next 12 months, we expect various
political, economic and social factors to have
an impact on permanent and contract risk
management hiring levels.
New regulations
The regulatory burden for financial services
organisations continues to rise, driving strong
demand for risk professionals across multiple
disciplines throughout 2023 and beyond.
Within prudential risk, for example, firms have been
hiring to support their transition from the Internal
Capital Adequacy Assessment Process (ICAAP)
to the new internal Capital and Risk Assessment
(ICARA). Meanwhile, the implementation of
new international standards for bank capital
requirements is creating opportunities for market
risk professionals. The Basel 3.1 changes include
key FRTB proposals, and organisations now have
until January 2025 to prepare for the reforms after
a two-year delay was announced.
The PRA has also recently outlined its expectations
for banks regarding improvements to model
risk management (MRM) practices. The CP6/22
principles, which resemble existing SR 11-7 rules in
the US, represent a major step-change for MRM
and are due to be implemented in the first quarter
of 2024.
Furthermore, the PRA is working alongside the
European Banking Authority to repair IBA models
within credit risk, resulting in increased demand
within this space.
