Quantitative Risk: Insights from Barclay Simpson

We are well and truly in the “Age of the Quant”. Financial firms of all types and sizes find themselves relying increasingly on quantitative analysts to try and predict or identify events or happenings – from the probability of an individual defaulting on their mortgage to credit card fraud, to the pricing of a derivative and the stress testing of a balance sheet, quants are as vital as ever to the successful and prudent management of a firm, division or portfolio.

Rising demand for quantitative risk analysts

Post financial crisis there has seen a surge in demand for quants – but where is the demand now? The repair of the supervisory system for banks and other financial firms is still ongoing, almost 15 years after the collapse of Lehman’s, HBOS and Bear. IRB Repair, FRTB, SACCR and the ongoing development of the model risk management world have all contributed to the demand for strong quantitative professionals. Within risk, the demand for quantitative professionals remains steady across all internal model areas, including front office.

Quantitative risk management concepts techniques and tools

In addition, modern computing power and advanced modelling capabilities have seen the emergence of data science, AI and machine learning. Many larger financial firms are still getting to grips with how to deploy this technology most effectively, and except for retail banking and some smaller asset managers and hedge funds, we are yet to see the peak of hiring of AI/ML in the investment banking space.

Quant and ESG

Climate risk is a new risk class which is a major focus for virtually all financial firms, banks in particular, who by the end of 2021 will have to comply with the requirements set out in SS3/19, the PRA Framework for climate risk management. Credit risk and stress testing are especially impacted by this, with internal rating models and stress models all needing to incorporate climate risks with extensive work being undertaken to ensure existing models are capable of assessing climate risk.

Building your permanent or agile Quant Risk management team

At Barclay Simpson we seek to provide a full-service solution to your staffing challenges:

1. Permanent Quantitative Recruitment
2. Interim Quantitative Recruitment (Daily Rate or Fixed Term Contract)
3. External consultancy supported in house by sister recruitment company with dedicated recruitment expertise for Quantitative hires
4. Market mapping and bespoke competitor analysis on company structures
5. Compensation analysis and benchmarking

When you’re looking to build and secure your organisation’s Quant Risk management capability, Barclay Simpson can help you quickly build a technically proficient multi-skilled risk management function and team either on a permanent or contract basis.

Get in touch for support hiring Quant Risk professionals