In 2023, we saw global wars, rising interest rates and inflation, bank collapses, significant shifts in digital currencies, and GenAI became part of our daily lives. Risk management continues to evolve and take on an expanded meaning while playing an increasingly vital role in the financial markets.

Layoffs, Hiring Freezes

Ongoing industry consolidation and lower-than-expected returns have led to layoffs in some parts of the market, resulting in strong talent becoming available (though we’ve seen many of them get hired by other firms quite quickly.) We’ve also seen the challenged asset management industry replacing some of their key senior risk leadership.

Meanwhile, several risk leaders I keep in touch with are concerned that “hiring freezes” have kept their teams well below appropriate levels. Could that pent-up demand turn into a boisterous talent market in 2024? Overall, the market demand improved compared to the first half of 2023 but is still spotty. Other notable talent requirements we’ve seen in this last half have come from planned retirements and succession planning.

CRO Transformation

“Increasing global risks, economic uncertainty, and the evolving financial industry are having an unprecedented impact on risk managers’ function, skillset, and expertise.” We continue to see the CRO role transform and become increasingly critical in many companies. In more and more firms, the function goes beyond traditional risk management, taking on a more proactive and strategic role.

Risk managers must be adaptable and expand their skill sets to navigate challenges in our uncertain economic climate. To succeed, they must have a keen understanding of global issues, be innovative, and possess excellent technology, strategic thinking, and leadership skills. You can read more about it in this article: The Transformation of the Role of the Chief Risk Officer

Process, Automation, and Tech!

Better use of data, creating increased efficiencies, leveraging offshore talent, and, of course, the rapid onset of Generative AI (GenAI) tools are all hot topics of conversation. Copilots such as those from Microsoft and GitHub have proven to be particularly useful and are being utilized more often, resulting in a material boost in productivity. It’s imperative that companies take the time to recognize and embrace the potential advantages of these new tools to stay competitive. 

The talent challenges faced by most CROs are born of a mix of tighter budgets, emerging AI and technology opportunities, data challenges, market uncertainty, and complexity. The best talent that can combine quantitative skills with data proficiency, a passion for markets, and an ability to synthesize multiple inputs and communicate complexities concisely is always in demand. Identifying them and capturing their interest is our expertise!

Interested in learning more about these topics and how Spire Search Partners is solving the industry’s talent challenges? Please reach out to Dennis Grady with your availability.

Notable Market Moves

July 2023 – December 2023

Freestone Grove Partners appoints Nancy Cheung as the Chief Risk Officer. She comes from Brookfield Asset Management where she was the Head of Risk.

Felix Cua joins Twin Tree Capital Management as the Chief Risk Officer. He comes from Galaxy where he was the Head of Alpha Strategies.

Man Group promotes Kevin Marchetti as the Co-Head of Direct Lending, Chief Credit Officer. He previously was Partner, Chief Risk Officer at Varagon Capital Partners/Man Group following the acquisition of Varagon by Man Group.

Nasreen Kasenally was promoted to Global Chief Operating Officer and UK Country Head of UBS Asset Management. She previously was the Chief Risk Officer Asset Management and Group EMEA for UBS Asset Management.

First Commerce Bank appoints Danny Beagle as Chief Risk Officer. He previously was the Chief Risk Officer HIMCO / ERM Head of Credit & Market Risk Management at The Hartford.

Citadel promotes Richard Cresswell to Head of Risk, Global Fixed Income. He previously was the Head of Risk, Credit & Converts.

Samuel Hikspoors joins Trans-Canada Capital as Senior Director – Portfolio Construction and Risk. He comes from Beneficient where he was the Chief Risk Officer & Managing Director – Portfolio Construction, Risk and Research.

Oaktree Capital Management promotes Wayne Dahl to Managing Director and Co-Portfolio Manager. He previously was the Managing Director, Assistant Portfolio Manager and Investment Risk Officer.