Navigating Risk Recruitment Challenges
With more opportunities available than qualified candidates, competition for skilled risk professionals is fierce. Here we outline the key hiring challenges firms are facing and the factors influencing candidate decisions.
Process and Agility are Key Barriers
Lengthy and complicated hiring processes continue to be one of the main reasons firms lose out on strong professionals. Extended interview rounds and slow internal approvals send the wrong message about decision-making and priorities, while the most effective hiring teams plan ahead, stay connected with candidates, and move quickly when the right person comes along. Flexibility has also become a deciding factor. Employers that can adjust to individual needs, such as offering hybrid work, reduced hours, relocation support, or subsidising commuting costs, are finding it easier to secure candidates, while those with rigid policies are losing engagement before offers are made.
Balancing Internal Development and External Expertise
Many institutions continue to promote and develop internal talent for leadership roles, but the growing technical demands of regulation and automation are creating new positions that require specialist external hires. Developing junior employees can be rewarding but time-intensive, and firms are recognising the need for a balanced approach that combines internal succession with targeted external recruitment. Regulatory change is also influencing workforce structures. For example, the DBA Act in the Netherlands, fully enforced since January 2025, has reduced the use of contractors by tightening rules on false self-employment. As a result, more financial institutions are transitioning contract roles into permanent positions, while independent professionals are actively seeking long-term employment for greater security.
Redefining the Employer Value Proposition
Although overall compensation levels have remained stable over the past year, candidates now have greater choice amid demand for their expertise, so firms must compete on more than salary alone. Flexible working arrangements, strong workplace culture, and visible career progression are increasingly determining factors when candidates decide between offers. Employers that highlight their long-term stability, inclusive environments, and clear growth opportunities are gaining an advantage in securing and retaining risk professionals, but we also expect salaries will be pushed higher heading into 2026 due to limited talent supply.
Openness to Broader Talent Pools
For roles where competition is strongest, some employers are showing greater willingness to consider candidates from adjacent industries or academic backgrounds, especially where technical skills can be transferred or developed internally. Others are relaxing language requirements or offering remote options to widen the available talent pool. However, in highly specialised areas like model validation, stress testing, and regulatory policy, it can be difficult for candidates in neighbouring industries to move into senior management roles, so direct experience in regulated environments remains essential.
“Speed and a clear value proposition are absolutely key in risk recruitment. Many organisations are adding a personal touch to the process – such as arranging an extra call with the hiring manager or inviting candidates to team lunches and company social events – to show that employees are valued from the very beginning. In today’s uncertain economic climate, candidates also want to see a clear onboarding and training plan for their first six months. Providing this can make a significant difference when candidates are choosing between employers.”
Jack McCarthy, Vice President – Risk, Legal & Compliance
Selby Jennings Berlin
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