New York / November 27, 2006 – Risk Talent Associates, a leading risk management executive search firm, released two Professional Compensation Surveys today, one on risk managers in consulting and the other on corporate risk managers. Average total compensation for the two groups between 2005 and 2004 increased at 5.3% and 9.0% respectively.
Risk consultants with 7-15 years of experience witnessed the highest increase in total compensation at 9%. By title, consultants, managers, principals and directors took home better compensation packages, ranging from 9-13% more. The survey also reports that greater compensation is typically found at the large consulting firms, where healthy non-cash bonuses help drive growth. Roughly sixty percent of the survey’s 130 total respondents report working at these firms, while the remainder report working at small risk-focused consulting boutiques.
“Risk consulting continues to be an excellent medium for an individual to broaden her experience among risk disciplines or between market segments,” says Michael Woodrow, president of Risk Talent Associates. “We worked on several projects this year where we helped consulting firms hire experienced managers. In these situations, the consulting firms were able to offer the hired employees the opportunity to broaden their risk experience as well as deepen their project management and client facing skills.”
Meanwhile, almost 60 respondents participated in the survey of corporate risk managers, with a healthy representation from such blue chip organizations as GE, McDonald’s, and Sara Lee. Growth in total compensation was greater for those with less than 15 years experience, and was relatively even across job titles – with the exception of more attractive bonuses among senior officers. Almost predictably, most respondents in this segment indicated a focus on market risk.
“Corporate risk management groups continue to expand as firms become more aware of commodity, interest rate and currency risks their firms face,” states Woodrow. “Finance professionals often have the opportunity to develop risk skills while working on projects that can save their firms millions in exposures.” Woodrow goes further to advise that corporate risk professionals get involved in risk industry associations such as PRMIA and GARP to ensure that they are taking advantage of industry best practices in risk management.
These are the latest compensation surveys in a series that Risk Talent Associates will release this year. Risk Talent Associates has also released surveys of risk professionals in the capital markets, asset management, energy markets, as well as software and technology industries.
About Risk Talent Associates
Risk Talent Associates (www.risktalent.com) is the leading international executive search firm focused exclusively on positions in the fields of market, credit and operational risk, as well as financial compliance and risk technology. Risk Talent’s expertise, industry knowledge, proprietary network and dedicated focus shorten the recruiting process to deliver senior and mid-level risk managers in the capital markets, asset management, energy, consulting and software industries. Risk Talent has offices in New York, Chicago, London, and Hong Kong.
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