Risk Market Overview
The European risk talent landscape is constantly evolving in response to regulatory tightening, digitalisation, and economic uncertainty. Here are some of the biggest developments our market experts are observing across the sector, and the skills firms are competing hardest for in turn.
The Expanding Role of Stress Testing
Demand for stress testing and regulatory risk professionals has grown sharply as supervisors place greater emphasis on data quality, scenario design, and the alignment of stress results with capital planning. The EBA’s 2025 EU-wide stress test has pushed firms to expand teams that can combine quantitative expertise with regulatory fluency, capable of interpreting complex macroeconomic assumptions and ensuring that outputs withstand scrutiny from both internal audit and regulators. Employers are particularly seeking professionals with skills in scenario modelling, econometrics, and risk aggregation, alongside strong communication ability to translate technical outcomes into board-level insight. The most in-demand profiles are individuals who can bridge model results with practical recommendations for risk management and capital allocation.
A New Era of Operational Risk Management
Operational risk functions are becoming broader and more technical, reflecting the rise of digital operational resilience as a regulatory priority. Since the EU Digital Operational Resilience Act (DORA) came into force in January 2025, firms must now evidence their ability to manage ICT risk, oversee third-party providers, and conduct advanced testing such as threat-led penetration testing (TLPT). As a result, hiring demand has increased for professionals who can translate resilience requirements into practical frameworks by combining regulatory understanding with hands-on experience in risk control, cyber governance, and incident response. Attracting this talent can prove challenging, however, as many candidates with the necessary technical background are drawn to broader technology or cybersecurity roles, leaving financial institutions to compete aggressively for a limited pool of specialists.
AI Governance & Automation Enter the Risk Function
While artificial intelligence has not yet transformed risk hiring, its influence is growing. The EU AI Act, which began applying key provisions in 2025, has prompted firms to assess and document how AI is used within their risk frameworks. This includes systems deployed for credit scoring, fraud detection, and market surveillance, where governance and model validation standards must now account for explainability, bias, and traceability. Meanwhile, automation tools are transforming how risk teams manage workflows, including streamlining data aggregation, documentation review, and reporting. As adoption grows, employers are prioritising candidates who can blend risk management expertise with data skills, particularly in Python, SQL, or AI-driven analytics. In the near future, AI governance, AI agent development, and automation proficiency are expected to become core competencies within the modern risk function.
Regulatory Drivers Reshaping Risk Teams
Regulatory reform continues to be the strongest influence on Europe’s risk hiring landscape. The Capital Requirements Regulation III (CRR III) and its corresponding Capital Requirements Directive VI (CRD VI) mark the EU’s implementation of Basel III finalisation. CRR III took effect on 1 January 2025, with CRD VI to follow after national transposition in early 2026. These measures are likely to further increase demand for credit risk, model validation, and liquidity management specialists as firms adapt to new output-floor requirements and revised standardised approaches. The Digital Operational Resilience Act (DORA), live since 17 January 2025, has broadened the remit of operational and ICT risk teams. Institutions must now evidence resilience through rigorous testing, incident reporting, and oversight of critical third-party providers – creating sustained hiring needs in operational resilience, vendor risk, and cyber governance.
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