Risk Management Market Update Q1 2023 – Funds & Asset Management

Risk Management Market Update Q1 2023 – Funds & Asset Management

In 2023, we have observed a slowdown in recruitment activity attributed to the decreased influx of new management companies entering the market. Additionally, risk professionals have successfully integrated into EMEA and Global risk teams, leading to various positive outcomes. This integration has provided risk professionals with opportunities to assume greater responsibilities and has resulted in increased levels of candidate retention, subsequently decelerating external movement within the industry.

Notable Points:

Liquidity Risk:

Regulators have heightened their focus on liquidity risk, and discussions are underway regarding the implementation of Macro Prudential Risk Frameworks by the Central Bank of Ireland (CBI) for non-bank financial institutions.

Sustainability Risk:

Funds and asset management firms are experiencing heightened regulatory pressure to adhere to sustainable criteria and ensure accurate labeling of their products. The Central Bank of Ireland (CBI) has advised these firms to incorporate sustainability risk into their risk management processes. Consequently, sustainability has emerged as a crucial risk indicator, alongside market, liquidity, credit, counterparty, and operational risks.

Operational Risk & Resilience:

Operational resilience has become a top priority for all organizations due to enhanced regulatory pressure. In response to CP 138, we have observed a significant increase in the creation of senior outsourcing positions. Many firms have chosen to separate this function from operational risk.

Firms that hired externally in 2023:

• Brian Duggan joined Kroll from EPIC Investment Partners
• Aidan Tansey joined State Street from the CBI
• Alice Delehanty joined Innocap form Virtu Financial
• Donal O’Flaherty joined Vanguard from IQ-EQ
• Simon Stroughair joined London Stock Exchange from Innocap

Internal Promotions:

Mary Ann Hernon – Promoted to Global Head of Enterprise Operational & Conduct Risk at Morgan Stanley

About us:

Founded in 2016, Camden Recruitment Partners is a boutique recruitment consultancy specializing in the funds and asset management sector. We operate across the EMEA region, covering both public and private markets.

If you would like to arrange a confidential consultation email mark@camden.ie