Banks Paying Up For Risk Specialists
Firming demand for financial risk managers in Canada is pushing up base salaries more than for any other finance specialty, a new survey indicates.
Among dozens of titles and seniority levels broken out in Robert Half International's 2010 salary survey, this year's estimated 3.1 percent average increase for financial risk managers in Canada is the largest such gain. Risk specialists this year can look forward to earning C$85,750 - 107,000 in base salary (US$83,642 - 104,369 at Tuesday's exchange rate). That compares with last year's estimated range of C$84,250 - 102, 750.
Like their European and U.S. counterparts, Canadian banks increasingly seek to improve measurement of economic risk and capital adequacy. Professionals who can communicate risk management principles to senior management "not just theoretically" but in practical layman's terms are likely to be prized job candidates, says Mike Gooley, metro market manager for Robert Half International in Toronto.
Which Credentials Are Sought?
While Canada's banking system held up against the crisis better than that of any other industrial country, reports of unauthorized derivatives products trading are making headlines in Canada, too, Gooley observes. That's leading many financial institutions to demand two particular risk credentials: Internal Capital Adequacy Assessment Process (ICAAP) and Basel II expertise. More-general professional designations, ranging from accountancy (Chartered Accountant, Certified General Accountant, and Certified Management Accountant) to investment management (Chartered Financial Analyst or Chartered Alternative Investment Analyst), can also give risk management candidates a leg up.
Meanwhile, given the drop in interest rates over the past two years, people are still refinancing mortgages, and the positions of mortgage loan officer, mortgage document specialist, and mortgage underwriters' positions continue to be in high demand. Canadian salaries for mortgage processors, mortgage underwriters and mortgage closers are seen rising 1 - 3 percent this year, taking mortgage underwriter base salaries as high as C$60,250.
Also in demand are mid-level finance professionals with various risk, P&L and derivatives knowledge. They're needed to help large financial institutions manage, and in many cases wind down, remaining exposures to esoteric derivative products.
Canadian financial professionals with hands-on project management experience will have a particular leg up this year as financial institutions bulk up systems and internal controls while seeking to more fully understand and reduce risk, Gooley concludes.
Robert Half derived the numbers in its 2010 salary guide (available free, but registration required) by combining information from its own placements in Canada, conversations with chief financial officers, and government data issued by Statistics Canada. All the salary figures exclude bonuses and incentives.
