Compliance & Risk Industry Updates - April 2023

The recent months have been marked by various factors affecting the business environment, such as the unpredictability stemming from tech layoffs, the disbursement of bonus season pay-outs, and the increasing demand for greater job flexibility among employees. At Coopman, we are currently forecasting the trends that will emerge in the second quarter of the year.

Market trends:

There has been two main observations in terms of activity as we come to the end of Q1.

The first being within the insurance sector. This sector tends to thrive in high-interest rate environments, exhibiting strong market performance compared to other industries.

There has been significant activity in compliance and risk management, particularly in the area of risk mitigation. Central banks are placing greater emphasis on ensuring firms have robust internal controls. This has resulted in increased demand for mid-level professionals with 3-7 years of experience in the life, non-life, and reinsurance sectors.

The second observation is that there has been a notable trend in the e-money and payments industry towards hiring senior-level professionals, including those with Money Laundering Reporting Officer (MLRO) certification (PCF12 and PCF52 licenses), as well as Heads of Compliance. There is a significant increase in demand for such roles in the sector.

In light of recent developments involving Silicon Valley and Credit Suisse, there is heightened focus on counterparties and credit risk. It is likely that banks will seek to mitigate any potential market risk associated with their business partners, resulting in increased demand for mid to senior-level professionals in this area. Companies are presently prioritising the development of new teams to address this particular area of focus.

Market sentiment/market pulse:

Many individuals or organisations find themselves in a state of uncertainty or indecision, with unclear prospects or options for moving forward.

Although companies are seeking to recruit new talent and candidates are considering new opportunities, both parties appear to be hesitant to fully commit. During periods of uncertainty, individuals tend to stay with their current employer, unless they are severely dissatisfied with their current situation.

As a result of the significant activity observed in the final quarter of last year, individuals who have yet to make a career move are now re-evaluating their options. Although clients are still pursuing their business strategies and entering the market, they are proceeding with caution, taking time to assess market conditions and implications before making any major decisions.

While there has been no decrease in job opportunities, there also hasn’t been a significant increase in job movement. In the event that clients encounter qualified candidates during recruitment, it is crucial to prioritise promoting the company’s plans and opportunities and providing reassurance to the candidate. Firms must ensure a smooth transition for candidates, offering them comfort and support during the transition process.

Advice for clients:

• Enter the market with a strong commitment to establishing trust with potential clients.
• Effectively promote your brand and showcase your value proposition.
• Mitigate any concerns that may arise in the current volatile market conditions.
• Exceed candidate expectations, as individuals are less willing to take risks during Q2.

If you are concerned about how the current market may affect your position, or to discuss how we can support your hiring processes in the current market, please get in touch with Director and Co-Founder Andrew Murphy at [email protected]