The recent announcement by the world’s largest inter-dealer broker – Icap – in which it predicted that profit for the end of the financial year would be at the upper end of analysts’ predictions of £336m to £358m brings welcome news to the City. But in light of this, does the subsequent claim by Icap itself that clients have rediscovered their appetite for risk spell positive signs for growth? And will it create new opportunities for job seekers?
Perhaps it is too early to tell, but this could kick start areas within investment houses that have lain dormant since hiring ceased in the wake of the Global Economic Crisis. Whilst five or six years ago when global markets were steady, investors had a real appetite for risk, in recent years these organisations have become increasingly risk averse. Consequently, mergers and acquisitions activity has been at a low level. But could the tide be changing? It appears so.
A recent survey of Chief Finance Officers carried out by Deloitte UK found that whilst optimism might be down, risk appetite is certainly up. In fact, risk appetite has risen to its highest level since Deloitte first carried out such a survey in 2007. Just over 40% of CFOs that responded to the survey believe it is a good time to take risks on their balance sheets. And whilst the appetite for risk is strongest amongst larger companies, it is a positive sign for candidates.
The survey also revealed that there has been a shift in CFOs opinion with a move towards raising leverage for the first time since 2008, as well as a focus on pursuing growth strategies with expansion being the top priority.
Any expansions plans whether organic or through mergers and acquisitions activity are likely to increase the need for recruitment within key areas. Whilst there is still a long way to go there is no doubt that a continued appetite for risk will bring with it recruitment opportunities.
Robert McLeod
Robert is Financial Services Director at Venn Group, the specialist provider of temporary and interim staff across the UK. Robert has over twelve years experience of managing recruitment teams within the financial services sector.
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