Key Trends in the FRM Job Market

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The job-hunting chronicles

COVID-19 has wreaked havoc in the industry. Old talent is gradually getting shipped out, and new tech-savvy risk managers are being brought in.

The function of financial risk management will feature heavily in many recovery plans.


How will these changes affect your career?

Rather than stressing, knowing what the future may hold for can help you prepare and strategize wisely as we rush into this inescapable future.

Since most FRM professionals are keen on speculation, here’s our data-driven, super guide on the trends and the future of the risk management job market and what you can do about it.


Artificial intelligence

Although banking and financial risk management firms have been slow to embrace artificial intelligence, a PricewaterhouseCooper study affirms most of the bosses in the sector are putting resources into AI.

Numerous CEOs are saying  they are making “generous” investments in AI. In comparison, 72 percent trust it will be a business advantage.

One thing that will probably cause the rest to trust in AI’s potential for the business is that cost savings are projected to be $447 billion by 2023.

Artificial intelligence will be instrumental in the manner in which financial organizations detect fraud and improve security.

The innovation is currently helping many firms with loaning decisions and risk management and is primary in making other big data innovations work.

The coronavirus has underscored organizations’ need to centralize and automate data to identify both risks and new opportunities.

AI will be a critical part of the conversation even as management look for ways to break down structural barriers and improve firm-wide collaborations.


Machine Learning

Machine learning makes it possible to draw upon information that is aggregated and coordinated.

This implies placing information in concentrated sets or data pools instead of having it disintegrated across singular business frameworks.

This amazing technology help recognize patterns in information and map out inconsistencies and trends as they show up.

Advanced modeling techniques can quickly filter through gigantic amounts of the client, product, supplier, and system data to highlight such patterns.

What to do: Step up your skills and ability for big-picture thinking. Let AI deal with the redundant tasks and concerns that are beneath you.


Big data

One way to examine an innovation’s impact on an industry is to analyze the amount of resources being poured into it.

The financial sector is presently one of the top investors in big data and business analytics, as cited by the IDC Semiannual Big Data and Analytics Spending Guide.

Having the ability to leverage big data to make business decisions and critical insights will be a requirement for financial risk management professionals.

Financial institutions are currently using big data to learn more about clients and make decisions in real-time.

Data analysis will reveal deep insights such as a client’s way of managing money, customer segmentation and potential cross-selling opportunities while helping in risk assessments, reporting, and fraud prevention.

Big data helps distinguish market patterns even as it enables firms to streamline internal processes and manage risk.

The year 2020 has highlighted the need to leverage new data sources to improve risk assessment and monitor new threats.

A recovery plan for most businesses now includes using new data capabilities to help risk analysts better predict risk by expanding the use of external data sources.

What to do: Step in. Understand how to leverage big data and monitor it for accurate insights in risk analysis.


Robotic Process Automation (RPA)

Because RPA can lower operational expenses, reduce the amount of work required, and minimize errors, numerous financial firms are beginning to use this innovation to augment their internal and client-facing processes.

In RPA, programming is modified to empower robots to finish redundant undertakings effectively and rapidly without human mediation.

Robotic Process Automation (RPA) in regulatory compliance and risk management will likely disrupt the financial services industry.

As of now, RPA is helping firms to achieve compliance fast and cost-effectively.

Regulatory reporting: The precision of data submitted to the controller for review, survey, endorsement impacts the degree and speed at which firms can attain compliance.

RPA is currently helping to attain continuous testing and reporting 100% consistent with requirements.

Compliance testing: FRMs are often needed to perform testing for compliance with key business unit certification guidelines.

RPA is now being used to achieve real-time testing for compliance with internal and regulatory policies.

Banks often gather various records from their corporate client to attempt post-sanction evaluations and calculate key risks.

RPA aids in the computerization of risk calculation while ensuring improved data collection for future risk analyses.

What to do: Research and learn new skills that can help you work better with RPAs.


Inter-departmental collaboration

The greatest change for risk managers is defining the risk function.

Many are beginning to create solid connections with leaders in other departments – particularly those in IT, technology, and operations to cultivate coordinated effort and data sharing all through the company.

This co-operation helps define the risk function as forward-looking and proactive, changing its perception as a back-office defensive unit that thwarts innovation instead of empowering it.

Apart from utilizing new information sources, models, innovations, and capacities to recognize and alleviate risks, an active risk function drives the need for new aptitudes and skills.

Businesses are currently looking for highly trained talent to help leverage new tools.

Currently, firms are seeking risk management expertise in diverse areas, from cybersecurity to geopolitics and epidemiology, plus skills in data and relationship building.

These new skills are increasingly being obtained by new hiring and by bringing in specialists from other departments in the same organizations.

What to do: Be a well-rounded financial risk management professional. And remember…play nicely with other professionals.

The future in the risk management job market is data and automation.

The biggest fight for job hunters now should be technological skills improvement to offer more value than the redundant scripted tasks which machines can handle.


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