Careers - Compliance & Risk
Compliance roles cover anti-money laundering (AML) and financial crime, monitoring and surveillance and control room compliance jobs, while risk roles cover market, credit, operational and regulatory risk.
There are many opportunities within the Risk function of financial services. Risk can be categorised within the following categories: back, middle and front offices. Below is a brief overview of the types of roles that are attainable within the risk field. There are many routes to a career in risk.
Market risk jobs: If you work in this function you will be analysing the risk of a group of traded financial products (e.g. stocks, bonds or commodities) falling in value simultaneously because of external events that affect the general performance of the financial markets. Potential sources of market risk (also known as ‘systematic risk’) include natural disasters, economic downturns, terrorist attacks and interest rate changes.
Credit risk jobs: Credit risk is core to the financial products and services banks provide, and roles are sometimes tied to specific products. Credit risk is the risk of a company or individual defaulting on their contractual obligation to repay a loan or other debt, resulting in a loss of principal or loss of financial reward. Credit risk is calculated on a borrower’s overall ability to repay – the higher the risk, the higher the rate of interest they pay. Credit risk plays a vital role in the debt capital markets, with high-yield bonds offering more interest because the companies that issue them are more likely to default.
Operational risk jobs: The most niche of the main three risk roles, operational risk jobs are in demand as banks’ internal processes become more complicated. If you work in operational risk you will be assessing the risk of your bank incurring damage or losses due to internal factors, such a systems breakdown or employee fraud. Operational risk – sometimes described as risk arising from human error – is specific to the individual bank rather than inherent to the financial markets.
Regulatory risk jobs: As well as the three core functions above, the rapidly changing regulatory environment is opening up more jobs in regulatory risk. These professionals assess the risk of a change in regulations or law significantly affecting a product, investment, department or the bank as a whole – for example, causing a rise in business costs or a reduction in the attractiveness of an investment.
Compliance roles can be categorised in different ways – from front-office facing ‘markets advisory’ roles to more centralised ‘control room' positions. A markets advisory compliance job means you’ll be working with the front-office – investment bankers, salespeople and traders – to ensure their activities comply with the requirements of the local regulator.
Markets advisory compliance professionals are typically also product experts (they might specialise in bonds, equities or derivatives, for example) who liaise with structurers and ‘solutions’ specialists to create suitable products for clients and the bank while adhering to regulations.
Monitoring and surveillance compliance jobs: The real internal policemen of the bank, monitoring and surveillance professionals scrutinise specific behaviour and transactions that might indicate fraudulent activity, such as insider dealing, conflicts of interest or market manipulation. They compile incident reports of potential breaches, conduct further investigations and then report the final outcome. At large banks covering multiple financial markets – from credit and rates to treasury and foreign exchange – the scope of monitoring required is massive.
Anti-money laundering (AML) and financial crime compliance jobs: AML professionals are tasked with identifying the financial proceeds of illegal activities which have been disguised as being from legitimate sources. AML expertise is highly sought after by banks right now because of the international drive to crack down on financial crime and terrorist financing. Jobs within AML range from know-your-customer (KYC) roles – in which you help verify the identity of clients – to more strategic positions building relationships with regulators and providing internal advice on AML policy.
Control room compliance jobs: These jobs involve firm-wide tasks, such as maintaining the bank’s restricted lists (which restrict confidential information to key individuals), preclearing analyst research reports, tracking transaction flows, and reviewing preclearance requests of staff relating to their outside business interests and personal accounts.
Compliance & Risk Overview
Markets advisory compliance
Monitoring and surveillance compliance
Anti-money laundering (AML) and financial crime compliance
Control room compliance
Meet The People
We asked funds industry professionals to share their backgrounds and experiences working in the industry. They talk about career development, where they're from, what they enjoy most in their roles and what they're involved in at their company and outside of workView All
'I’ve a lot of control over what I want to learn, and this allows me to take responsibility for my own work and career development.'
Risk & Valuation Specialist at Citco
Tara talks about her pathway into the funds industry as a non-business/finance graduate, moving into a new role at PwC, and the flexible working culture she has encountered.
Tara Doogan 2
Manager, Regulatory Advisory, Asset & Wealth Management at PwC