A majority of risk managers are optimistic about the profession’s outlook, with COVID-19 and economic uncertainty amplifying the need for strong organizational risk management, a report from the Global Association of Risk Professionals (GARP) reveals.
Sixty-nine percent of all survey respondents — comprised of 2,100 GARP Members across 101 countries — said they expect their risk career opportunities to increase over the next 18 months, while nearly one-third said they anticipate a significant increase in opportunities.
Forty-six percent of respondents also said they expect to receive an increase in their annual compensation in 2021, and more than 70% of respondents expressed satisfaction overall with their risk careers.
“We’re living in a time of rapid change, with risks to companies growing because of increasing international linkages, the use of technology, and the emergence of new risks related to climate change, cyber, and financial crime,” said Richard Apostolik, president and CEO of GARP.
“Professional risk managers have become indispensable in assisting financial institutions of all sizes around the world in meeting their strategic and business objectives.”
Some organizations left understaffed
A greater need for risk management has left some organizations understaffed. Throughout the pandemic, workloads either “increased significantly” or “increased slightly” for 70% of respondents, with COVID-19, regulation, and new technology as the top factors driving this increase. In addition, 54% of hiring managers reported feeling as if their risk department was insufficiently resourced for the demands being placed on it.
However, more than half of all respondents anticipate their organization’s risk management department to expand their staff in the coming year.
“Despite higher workloads and other challenges, risk professionals have high levels of job satisfaction and most expect their compensation to increase,” said Louise Holden, VP of GARP Membership and Chapters. “If the outlook in this report resembles what the next few years look like, then the future of the risk profession is bright.”