Operational Risk and Compliance 2015/16

Role Trends

2015 Job Spread

2015 was a very successful year in Operational risk and Compliance recruitment. Year on year fees generated in 2015 increased by 300% and the team grew by two new heads. Please see below the general tends that have driven recruitment this year. Extensive Areas of Recruitment Financial Crime Technology Risk Operational Risk Line 1

Trends and Updates

• Whilst there has been a significant increase in the demand for Operational Risk and Compliance specialists, this has not been reflected by a dramatic increase in salary.

• Technology Risk, Supplier Risk and Financial Crime specialists saw the largest increase in expected remuneration.

• Recruitment has been driven by regulatory changes

• Betting houses have had to increase their capability within the AML space

• Operational Risk specialists with strong IT experience/knowledge have been heavily sought after by both the big 4 banks and small-medium enterprises

• Risk specialists with strong WHS experience have been in increased demand by both consultancies and construction organisations

• Permanent roles have been created with a focus on delivered risk arising from projects

• The second half of 2015 saw a huge increase in the demand for professionals with a financial planning/paraplanning background to move into operational based roles. Typical roles with this demand include compliance advice, risk advice, advice documentation, internal audit, investigation, quality assurance.

• This demand has been driven by constant regulatory change and also companies experiencing scrutiny around their advice businesses

• Superfunds and money transfer companies have had to create new head count within Financial Crime.

• Year on year there was a substantial increase in senior 'Heads Of' roles.

Hardest Roles to Fill

Line 1 Operational Risk

• Real lack of candidates with strong technical skills and stakeholder engagement skills

• Big 4 Banks continue to look at their three-lines of defence model increasing recruitment in line 1

Technology Risk

• Organisations that traditional never had a Technology Risk function have had to recruit

• Extensive movement around $100 000 - $130 000

• Lack of candidates with IT knowledge and strong communication skills

Financial Crime

• Salaries were significantly driven up

• Attracting candidates to ‘low-risk’ organisations like superannuation providers proved difficult

• Increased regulations heightened demand of strong broad financial crime specialists

Please find salary surveys below on the average base salary ranges for:

• Operational Risk and Compliance• Legal and Compliance• Technical Manager• Head of Operational Risk and Compliance (team of 1-4)• Head of Operational Risk and Compliance (team of 5-10)

Depending on the organisation the title as will how many years that person holds at that title.

Operational Risk and Compliance

Job Title Average Base Salary Junior Officer (0-3 years) $50 000 – $70 000Associate/ Consultant/Officer ( 3-5 years) $70 000 – $95 000Manager ( 5-7 years) $95 000 – $135 000Senior Manager (6-8 years) $135 000 – $150 000 Executive Manager ( 8+ years) $150 000 – $210 000 Head of ( 10+ years) $210 000 +

The average bonus paid across most levels can range between 10-40%

Salary Surveys

Job Title Average Base Salary Junior Officer (0-3 years) $60 000 – $75 000Associate/Consultant/Officer (3-5 yrs) $75 000 – $105 000Manager ( 5-7 years) $105 000 – $145 000Senior Manager (6-8 years) $145 000 – $165 000 Executive Manager ( 8+ years) $165 000 – $240 000 Head of ( 10+ years) $240 000 +

Compliance and Legal

Job Title Average Base Salary

Operational Risk & Compliance (Line 1 & 2) $90 000 - $120 000 Financial Crime $110 000 – $125 000Technology Risk $115 000 – $135 000Supplier Risk $115 000 – $135 000 Compliance Advice $90 000 – $110 000 Operational Risk with IT experience $120 000 - $135 000

The average bonus paid across most levels can range between 10-40% The average bonus paid across most levels can range between 15-40%

Head of Risk and Compliance

Industry Space – Team of 1-4 Average Base Salary Investment Banking $220 000 - $260 000 Retail Banking $200 000 - $240 000 Insurance $190 000 - $230 000 Superannuation $180 000 - $200 000 Fund Management $180 000 - $240 000

Industry Space – Team of 5-10 Average Base Salary Investment Banking $250 000 - $300 000 Retail Banking $230 000 - $280 000 Insurance $220 000 - $280 000 Superannuation $200 000 - $250 000 Fund Management $220 000 - $260 000

The average bonus paid across most levels can range between 30-60%.

Technical Managers

Head of Risk and Compliance

Operational risk and Compliance Recruitment

Huxley is a global recruitment brand, focussing solely on staffing solutions within the financial services sector. Our Banking division comprises of recruitment specialists within Credit Risk, Operational Risk, Compliance, Market Risk, Business Intelligence, Business Analysts, Project Mangers and Structured Finance I Head up the Risk and Compliance team covering all recruitment needs within the Banking and Finance Space. The table shows an example of roles and clients that I have worked with.

The Australian Financial Services sector is highly networked and well regarded on a global scale. At Huxley we take pride in working with the best candidates, and ensuring their needs and expectations are managed with the highest levels of professionalism.

If you are interested in hearing more about the operational risk and compliance market, searching for a risk or compliance candidate or looking for a new role please do not hesitate to reach out.

Elizabeth FloydOperational Risk & ComplianceT: +61 2 8251 2103E: e.floyd@huxley.com

Client Sectors

Financial Services• Trust Companies• Utilities• Software Vendors• Consultancy Firms• Regulation• Exchange• Clearing Houses

Insurance• Insurance Companies• Pension Funds• Reinsurance

Retail Finance• Credit Card• Loan• Lease Commercial Banking• Retail Banking

Investment Management• Wealth management• Asset Management• Hedge Funds• Private Equity

Banking & Capital Markets• Corporate Finance• Corporate Banking• Investment Banking• Trading• Trade Finance• Commodity Houses