Jobs in finance: working in risk and compliance

18 June, 2021Nadim Choudhury

Risk and compliance have always been important in financial services, but the types of roles in this area have increased since the 2008 financial crash. Now, because of Covid, banks and financial institutions are heavily investing in risk management and compliance roles, creating new opportunities. Nadim Choudhury outlines the different roles.

Why are risk and compliance jobs important?

jenga towerRegulatory bodies often find themselves playing catch up with the speed of innovation.

With the changing nature of banking e-products and services, there’s a huge growth in digital products. Combined with advances in technology, customers are being exposed to a variety of financial services products that require regulation.

Because of these transformational changes – as well as investment in risk and compliance roles – there are many opportunities available for those wanting to pursue a career in the field.

What are the different types of risk-based roles?

If you’re interested in a career in risk, you could explore roles in:

  • operational risk
  • market risk
  • credit risk management

Operational risk

In this area, you’d determine the risks banks face by looking at its operations including:

  • the key processes
  • technology
  • human capital, and

And you’d be responsible for providing advice and guidance on how to minimise any risks.

Market risk

If you’re looking for more of an analyst role, why not look into market risk?

Market risk involves providing expert advice using a variety of analytical, statistical, and mathematical problem-solving skills. In this role, you’d assist with making predictions on how certain markets will react and provide advice on investment risk.

Credit risk management

In credit risk management you assess borrowers’ ability to repay loans as well as agree on fixed-income insurance bonds.

You’d usually be based in a credit rating agency, where you’d work with both individual clients and organisations. If you’re interested in working in credit risk management, you need to:

  • enjoy data analysis
  • have an analytical mind
  • be able to logically decipher complex information and relay it in a comprehensible way

Working in compliance

More recently, there’s been a huge demand for compliance jobs. Financial service firms are looking for:

  • financial crime specialists with expertise in anti-money laundering and,
  • specialists who to are able to undertake due diligence and advisory roles.

Traditionally, this has been more of a niche area where employers have struggled to attract graduates. However, as it has developed into a crucial area of practice, more career opportunities are becoming available in compliance.

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