Risk Management – Where Should You Work?
With the rise of risk management from a back-room job to one which is now key to the success of a host of international and national banks, after the devastating losses that caused the recession, there are many opportunities to expand your salary within the industry. We’ve explored some of the options for you, so you don’t have to! Here’s what we found in the UK, the USA and the Far East (Singapore and Hong Kong)
Let’s start at home. The base salary of an analyst in the UK is below that of both America and Hong Kong, at just under £40k, but sits a good £5k above Singapore. However, as you move up the ladder, the UK hops to the top of the pile, with its Risk Management associates earning the most out of the four locations, with an average salary of around £55k.
Further up the chain, the UK is the worst place by a miniscule amount to be a Risk Management VP (only earning £80k per year by this point), but climbs again as we get into the Director and Managing Director positions, who earn on average £110k and £185k per annum respectively.
What this tells us is that the UK is a decent place to start, with good benefits packages offsetting the slight wage deficit, whilst at a slightly higher level it is doubtless the place to be earning your cash. As the ladder carries on, London’s VP salaries are the lowest by a small amount but the significant reward as you continue to climb offsets this, with some of the best paid jobs in the highest positions.
The Americans have the edge on starting salaries, it would seem, with the average base salary of an analyst more than 10% higher than the UK at £46k. There is a smaller jump up to the associate salary, however, so whilst the salary remains similar, there is less reward for moving up a level, as associates earn only £54k per year.
The US soars back to the top of the league for VP base salaries, offering £93k on average (over £10k higher than the UK) and remains high as the chain is progressed, offering its Directors on average £115k and its MDs nearly £200k per annum.
The US is therefore arguably the best place to be in risk management, with early reward followed by a small windfall before it once again claims the highest earners at the top levels. If you’re planning on moving up the ladder quickly, the States might be the place for you.
Far East (Singapore and Hong Kong)
Singapore has the lowest rates of pay for all but one of the positions – their analyst salaries are almost £15k lower than those of the USA and their MD rates are around £35k lower, but this must be put into context with a fantastic work-life balance and the delights of one of the world’s most beautiful and spectacular cities all around. The cost of living in Singapore has been estimated to be at least 30% cheaper than that of London, so put into a bigger picture, the Red Dot continues to be an incredible place to work in Risk Management.
Hong Kong has monetary values to rival London and America, however, and at Director level is perhaps the best place to be located. Not only does it have the highest salary on average for Directors (at around £118k), but it has low income tax rates which mean that you get a little more bang for your buck – and it remains one of the most desirable spots to bag yourself a risk management job.