Market Outlook: Compliance and Risk Management Industry in 2021
Compliance and risk management expected to keep up with digital transformation. As more physical activities are being replaced by digital initiatives, businesses and consumers are inevitably more vulnerable to online threats and digital crimes. To counter the anticipated increase in digital threats, firms are beefing up their compliance and risk management teams to safeguard against money laundering and terrorist financing. Compliance and risk management professionals will be increasingly expected to apply their experience and expertise in roles, such as financial crime compliance (“FCC“) and anti-money laundering (“AML“). Companies face a constant challenge to find talent for these niche roles that require specific skills and in-depth industry knowledge. Therefore, compliance and risk management remains a candidate-driven market in 2021. There are also rising expectations for risk management and compliance candidates to be digitally-adept, be open to wear multiple hats and have strong language proficiency. Firms are digitising their risk and compliance processes to stay competitive through rapid and comprehensive responses, drive greater effectiveness, lower costs and enhance the customer experience. Candidates who have experience working with a variety of risk and compliance systems and good data analytical skills are highly sought-after. Within the risk and compliance industry in Hong Kong SAR, we expect to see higher talent demand in liquidity risk, interest rate risk in the banking book (“IRRBB“), special assets management, distressed asset coverage and sanctions.