#FinanceCareer #RiskManagement #HighFinance
🤔 Have you ever wondered why a career in risk is not always considered part of “high finance”?
💼 While some may overlook it, those in risk management often tackle some of the most complex and critical tasks in the finance industry. This path requires a diverse skill set including mathematical, statistical, programming, and finance backgrounds.
🔍 What are some reasons why risk management is undervalued in the finance world?
✨ Here are potential solutions to elevate the importance of risk careers:
– Increase awareness about the essential role of risk management
– Highlight the skills and expertise required for a successful career in risk
– Offer mentorship programs and networking opportunities to support aspiring risk professionals
Let’s discuss how we can showcase the significance of risk management in the finance industry! 💬💡📈
Because risk doesn’t make money. It’s there to stop others from losing money. Jobs where you can measure revenue in dollars are naturally more prestigious. Like imagine if you fire the entire front office of a bank, it stops working. If you fire the entire risk team, if the others are sensible, things will probably still function for a good while.
Because they’re not providing the service of the firm, they’re making sure those who do provide the service don’t do anything stupid in the process.
Risk is a cost centre and not directly generating revenue, hence low bonuses. Under-appreciated and underpaid of course but given that the avoided risk management failures from the work of risk professionals is never shown, revenue generators will always be appreciated more by management
No PnL
I know for a fact that JPM pays Risk extremely well at all levels.
Risk doesn’t require a high level of quant / math / CS skills. It requires passing an average level of skills. The people working there are not “the best of the best,” they’re just some guy. Quant trading, on the other hand, are individuals operating at a much higher caliber, and in turn, paid better.
Depends on what type of risk, it’s not that complicated in commercial
Yea… this stuff is pretty true 😂 I’m in risk & 100% just an average joe. Literal 1.8 gpa in high school retard.
Agree with others about revenue generating. Although the type of risk and level does influence the perception a bit. I’d argue portfolio risk at a large bank is a lot nicer sounding and more interesting than operational risk at a small firm.
It’s middle office
I don’t get how using financial instruments to tilt risk exposures is not contributing to PnL. Also a significant goal of most financial institutions is to manage some liability (pensions, wealth management, insurance, banks, etc.) and also to manage liquidity and interest rate risk.
Back office 😂😂😂
Prestige follows money.
1. Generate revenue (Sales, highest paying)
2. Grow revenue (ancillary sales and marketing, second highest paying)
3. Do not generate revenue (everything else, decent to bad pay depending on skills needed to do the job)