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Once modest of pay and profile, risk experts are being reborn as rock stars of the banking world – their status and salaries soaring as regulators force financial institutions to clean up.
Industry-wide investigations into allenged exchange rate manipulation, trading scandals at UBS, Societe Generale and JPMorgan and HSBC’s $1.9billion fine for lax money-laundering rules have upped the ante for banks already under pressure to crub reckless behaviour that led to the financial crisis.
Now watchdogs and central banks want to see a clear line of responsibility for the avoidance of such fiascos in the future, and as a result, the position of chief risk offer (CRO) gas jumped up the ranks. Many CROs now sit alongside the finance director as second in importance behind the chief executive.
“The role of the CRO has become broader, higher profile and more influential,” said Anne Murphy, head of UK financial services for executive recruitment firm Odgers Berndtson.
In turn, salaries have soared. Pay in risk-related jobs rose 6 percent in 2013 and rocketed 19 percent for those who moved firms, according to a report by recruitment firm Barclay Simpson.
HSBC chief risk officer MaRC Moses joined the bank’s board at the start of 2014, alongside the chairman, chief executive and finance director, and could be paid £6 million ($10 million) this year. Chief Executive Stuart Gulliver, who could be paid $11.4 million this year, says precisis, the bank’s CRO would not have made it into the top 50 earners.