The growing market for market risk

Jobs in market risk provide a crucial backbone for the City. So to get the lowdown on how market risk roles have changed, as well as the market’s demand for them, we spoke to Julian Bentley, Head of Risk & Compliance at Alderbrooke, a leading Executive Search and Cultural Diagnostics firm in the City…

CityJobs: First of all, what’s required of the Market Risk Analyst role?

Julian Bentley: “Many things. A Market Risk Analyst performs research that determines the probability of asset loss or reward from investments in a particular industry. So, for example, some of the tasks undertaken to gain this insight can include: conducting statistical analyses, the interpretation of statistical results, developing risk-management systems, consulting with securities traders, and reporting and presenting research results.”

What skills and experience are necessary to work in market risk?  

JB: “There are a variety of roles across a market risk team, each of which will require particular skills and experience. However, the majority of professionals in this space have quantitative or statistical backgrounds.

“A high level of knowledge, experience and understanding of a particular industry is necessary to provide the research, analysis and comprehensive market assessment that a company or investor may require.

“Increasingly, candidates must show a willingness to mould and adapt to unexpected regulation and stringent rules that are being put upon the industry, as this trend is likely to increase. Being stubborn about method or best practice will only stunt career progression.”

The growing market for market risk

Image: iStock

CJ: Can you elaborate more on why market risk roles are so important to the City?

JB: “Trade in financial assets is an ‘economic lubricant’ – it generates liquidity and reduces friction costs for the trade in real assets – which in turn is the engine that supports economic growth. Having a centre of excellence for financial trading skills helps the spread of ideas and gives a pool of talent to support innovation.”

CJ: Okay, so how has the demand for market risk professionals changed since 2008?

JB: “Since 2008, the demand for market risk professionals has been driven by the need to adapt to regulatory change rather than the desire to innovate. Complying with regulation is a source of significant friction – aka costs – nowadays.

“The demand for market risk professionals over the past few years has remained relatively flat, as it is a mature function compared to both compliance and financial crime, which are currently extremely buoyant.”

The growing market for market risk

Image: iStock

CJ: Given this current climate, how would you advise a City professional to move into a role in market risk?

JB: “The demand for excellent people to move into these roles is healthy, with industry experts always on the look-out for individuals with impeccable analytical and mathematical skills and who can understand what’s going on behind the numbers.

“For those looking to move into market risk as an Analyst, don’t be afraid to strengthen existing business connections or attend industry events and use these as opportunities to demonstrate the core skill set.”

View all the latest Market Risk jobs in the City.

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