2022 is set to be an interesting year for Risk Analytics. According to research, the risk analytics market is expected to be worth around $54.95bn by 2027 and is experiencing a huge degree of interest due to a combination of different factors coming together at once. The growth of business procedures and increasing deliverables are driving demand for techniques such as risk measurement, whilst rising incidents of cyberattacks combined with rising digitization are further catalysing the Risk Analytics market. Not to mention the impact that different macroeconomic elements are having, such as coming out of the pandemic, remnants of Brexit and rising inflation rates. Within the risk space, all of these variables are feeding into the way that both candidates and clients are making their decisions. Industry developments have a direct impact on the recruitment market, with trends being reflected in the needs and desires of both employees and employers. With risk coming to the forefront for many businesses, it isn’t surprising to see a surge in the demand for talent. Risk under the spotlightNumerous developments across the financial sector have made the skills that risk analysts have increasingly invaluable. The pandemic forced many companies to digitize and move to remote and cloud-based working systems, making security a company-wide concern. This has driven demand for the right talent to fill risk roles but also a greater willingness to dedicate more of their budget into investing in their risk functions and/or departments.The fraud risk spaceThe increase of remote working combined with a general trend of digitization has brought with it concerns around fraud. Headlines highlighting a ‘fraud epidemic’ have been circling with reports of fraud and cybercrime in the UK rising from 3,983 cases to 8,614 in a year. Digitization offers opportunities for company growth but if not securely managed, can serve up opportunities for criminals to exploit. Fraudsters are becoming increasingly inventive, and steps must constantly be taken to stay one step ahead. The skills that risk analysts have are essential in understanding the drivers to fraud within a business and ultimately how to prevent it.The rise of unregulated products and technologiesInnovation within the financial industry is also flourishing. The emergence of AI and adoption of more advanced technologies to better inform decision making, as well as the introduction of machine learning and data science into risk analytics, makes it an exciting time to be in the risk analyst field.New unregulated products and technologies have also flooded the market, such as crypoassets, decentralized finance and non-fungible tokens (NFTs). About 2.3 million people in the UK are now thought to own a crypto asset, creating a playground for fraudsters looking to misuse unregulated tech. Data reveals a staggering £146,222,332 has been lost to cryptocurrency fraud since the start of this year, and unless regulators are able to catch up with the ever-evolving nature of crypto, this will rise. As a result, there is expected to be a lot of regulatory changes this year to increase protections against consumer risk but also within financial institutions. This tends to stimulate demand within sectors such as risk analytics as well as causing shifts of focus within departments.Risk analyst salariesSalaries within the sector are currently being pushed upwards, largely due simply to supply and demand. Throughout the pandemic, most companies didn’t hire Risk Analysts, if anything, they let go of them. Recently, there has since been a spring coil reaction of demand for Risk Analysts and Risk Managers, to an extent not seen for years. To add to this there is a lack of talent, and candidates are increasingly asking for more because they know of the trend.Although it’s impossible to know for how long this might be the case, the recent mass movement of candidates since COVID-19, means that by the end of the year some candidates may have been at their new job for over a year and may be looking to move again. Supply could begin to creep up and start meeting demand, but only time will tell. This imbalance between supply and demand means that candidates are finding themselves in the unique position of being able to choose between job offers, and can therefore afford to fine-tune and find better suiting roles. It’s well known that it’s a candidate market, but it’s a really good time to explore roles out there and consider your current position.Ultimately if job searchers are looking at their current situation and thinking about whether there’s something better out there, there is not a better or more exciting time to be looking for a role in Risk Analysis.If you’re looking for your next opportunity or to build out your Credit Risk or Fraud Analytics team, Harnham can help. Take a look at our latest Risk Analytics jobs or get in touch with one of our expert consultants to find out more.
Posted in Risk Analytics