As Europeโs financial landscape evolves, risk management hiring is set for major shifts in 2025. Regulatory changes, technological advancements, and economic uncertainty are driving demand for specialised risk talent across all major verticals at financial firms, from banking to commodities and funds.
In this blog, James Gloster-Burke, Associate Director at Selby Jennings Europe, highlights the top trends shaping risk recruitment, the skills in demand, and strategies for attracting top talent.
What trends will have an impact on risk management hiring in 2025?
Commodities
In a push for a greener and net zero future, renewables will be a bigger focus this year for the traditional houses looking to add seasoned risk managers or launching new teams across their European offices. Risk managers with physical gas, power, and options experience will continue to see demand across London and Europe, mainly from the traditional houses, utility backed traders, and hedge funds looking to bolster teams as they expand their footprint.
Banks
Banks are are set to hire in 2025 across all areas, particularly for market risk, technology, and cybersecurity risk teams. This demand is driven by the rise of AI and other new technologies, as well as transformation projects, but also to fill existing headcounts.
Funds
Risk & performance analytics: The push to invest in new technologies and develop state-of-the-art platforms has led to demand for professionals with those skills in particular to enhance decision-making, predict future trends, improve efficiency, and provide a competitive edge. By leveraging data-driven insights, firms can proactively manage risks, optimise performance, and adapt quickly to market changes.
Macro risk: With market volatility and political instability, seasoned macro risk managers will be crucial hires for firms throughout the year, enabling firms to navigate the changing markets, identify emerging risk, and highlight opportunities for greater returns and overall growth.
What challenges are companies facing when hiring risk management professionals in Europe?
As banks are regulatory-driven, most of them are seeking the same skill sets in professionals at the same time, which makes it challenging to stand out and secure the best talent. Itโs important that hiring managers and talent teams highlight selling points outside of compensation, such as flexibility and fast progression opportunities.
With several new regulations and rising scrutiny from the regulators to ensure banks are effective and efficient across all risk areas, the challenge is compliance with upcoming and existing regulations, and ensuring the rules are applied consistently for all business lines.
Technology and cybersecurity risk
While AI and other new technologies, as well as transformation projects, offer significant benefits, they also introduce new vulnerabilities that need to be managed. This has led to the implementation of stricter data protection laws and cybersecurity regulations by regulatory bodies. Compliance with these is essential to avoid penalties and protect sensitive information.
Geopolitical risk
Geopolitical risk has become increasingly important for financial institutions due to its significant impact on global financial stability and operations. It affects credit risk and regulatory compliance. These risks can lead to higher default rates, increased uncertainty, disrupted markets, and the need to adjust portfolios to meet regulatory requirements.
What are your key recommendations for hiring managers within risk management?
Risk culture is key
As banks and global financial institutions face the challenges of climate, geopolitical, and technology risks, the importance of cultivating the right risk culture cannot be overstated. A best-in-class infrastructure, the most sophisticated risk models & approach are meaningless without a risk culture and can lead to catastrophic results. Greater regulations have put this at the forefront of financial intuitions' approach to staying compliant and ensuring issues around risk culture are addressed.
Be proactive, not reactive
In such a competitive hiring market itโs important to be proactive, not reactive, to ensure you have the talent you need in place. Last year, firms were failing to plan ahead, which resulted in many unfilled positions, when talent was needed in those areas. Start having those conversations now about which roles and expertise you need both in the short and long-term, so you can start planning headcounts and budget, and get ahead of your competitors moving into the new year.
โInterested in additional insights?
 | Risk & RewardAlong with overall risk management talent trends, salary guidance by city, and key takeaways, this report takes an in-depth look into the changes, challenges, and opportunities in the following locations: London, Dublin, Paris, Germany, Switzerland, Amsterdam, and Luxembourg. โ |
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