Risk Market Trends
The USA's risk talent landscape is constantly evolving in response to regulatory tightening, digitalization, and economic uncertainty. Here are some of the biggest developments our market experts are observing across the sector, and the most in-demand skills needed in turn.
A Competitive Function Fueled by Change
Hiring across the USA’s risk function remains highly active and increasingly competitive. Despite a cautious macroeconomic outlook, institutions continue to strengthen their risk teams – particularly in areas tied to balance sheet management, liquidity, model governance, and capital policy. Anthony McCann, Executive Director and Head of Risk Management USA at Selby Jennings, notes that sentiment across the market is busy but optimistic. Many firms are still hiring, even as they balance cost pressures and ongoing regulatory uncertainty. The transition to a new administration and evolving capital rules have prompted a renewed focus on stability and resilience, keeping risk front and center. As Anthony explains, “we're helping clients figure their hiring needs out in real time,” adjusting to regulatory expectations while managing the talent shortages that have persisted since 2023.
AI Moves From Concept to Capability
Artificial intelligence has not yet transformed the USA’s risk function, but its presence is growing. According to Anthony, “we’re seeing more firms exploring how automation and AI can improve controls, but it’s happening carefully – governance is always the top priority.” USA regulators have not introduced an equivalent to the EU AI Act, but there is growing emphasis on model explainability and accountability. Many firms are beginning to formalize their own AI governance policies, particularly in model risk, consumer credit, and fraud analytics, where machine learning tools are already in use. Looking ahead, AI governance and automation fluency are expected to become standard skill sets within risk, not just specialist capabilities. Risk professionals who can partner with data, quant, and technology teams to ensure models are reliable, compliant, and explainable will be key to the function’s next phase of growth.
Regional Hubs on the Rise
While New York will always be the undisputed center of risk management, its dominance is now shared with several fast-growing markets, as firms increasingly grow complementary teams elsewhere. Charlotte has firmly established itself as the country’s second banking hub, supported by major institutions like Bank of America, Wells Fargo, and Truist. Its strong financial services infrastructure and lower cost base have made it a natural home for large-scale enterprise and operational risk teams. Meanwhile, Dallas and Tampa are seeing steady growth as firms diversify their footprints to balance cost, talent, and flexibility. This regional expansion is set to continue through 2026, creating a more distributed risk talent landscape that gives professionals a greater choice in where they work and allows institutions to build resilience beyond traditional financial hubs.
Return-to-Office Mandates Redefine Flexibility
Following on from the return-to-office mandates we reported in last year’s market update, the push toward greater in-office presence continues. Many organizations now expect teams to spend most of the week together on-site for better real-time collaboration, particularly in oversight-heavy areas. This means that rather than fully remote setups, flexibility increasingly means choice of office location and balanced hybrid models for today’s risk professionals, which is having the greatest impact on mid-level talent – a group already in short supply, as discussed in more detail below. Stricter in-office policies undoubtedly make it harder to attract and retain experienced professionals, many of whom expect flexibility as a core part of their package. The best outcomes are coming from firms that are transparent about why in-person presence matters, and combine structured office time with considered flexible working policies for stronger retention and a healthier balance between productivity and culture.
Firms Focus on Closing the Mid-Level Talent Gap
Mid-level risk roles continue to be the hardest to hire for and the easiest to lose. These professionals have become the backbone of risk functions – experienced enough to own deliverables but still close enough to the work to drive change. As a result, they’re the group most targeted by competitors and the least tolerant of slow or unclear hiring processes. After several years of aggressive salary inflation, pay levels have largely stabilized, but expectations have not. Many professionals are still benchmarking offers against the highs of 2023–2024, while firms have shifted focus toward total value. This means that the firms seeing the most success in both hiring and retention are paying competitively as well as offering momentum: acting quickly and decisively, communicating better, promoting sooner, and making sure every candidate sees exactly how they’ll grow from day one.
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