Risk
2022 was a particularly active year for risk hiring in Hong Kong across financial and professional services from mid to senior levels.
Most International businesses experienced some continued level of turnover through 2022 (especially in Q1 – Q3) due to a genuinely active and competitive local marketplace for risk talent, further exacerbated by more individuals than usual opting to leave their roles to take time out from the territory or to sever ties entirely given Hong Kong’s inability to offer a clear roadmap back to life as they knew it.
Professional Services have and continue to experience business growth and are competing for the same pool of available local talent as that of the financial services community. Recent disruptions in the cryptocurrency and virtual asset market have contributed to headcount volatility in blockchain and fintech-related companies.
The appetite for Climate Risk and ESG (Environmental, Social, Governance) professionals grew in 2022 across banks, asset managers and consulting firms.
Basel IV
The new rules that draw a close to Basel III regarding banking capital requirements include amendments to the capital treatment of credit risk, market risk, operational risk and credit valuation adjustment risk and a new output floor to limit the extent to which banks will be able to use internal models for credit and market risk to drive down capital requirements.
Climate Risk
HKMA (Hong Kong Monetary Authority) issued the Supervisory Policy Manual on Climate Risk Management (“GS-1”), guiding authorized institutions on new regulatory requirements and expectations for HKMA’s supervision.
Again, we see no signs of reduced opportunities within the climate risk sector, given the underinvestment thus far/ shallow talent pool on the ground in the region. So, expect this to be a space that will continue to get busier and provide individuals with familiarity and specialism within the area with multiple opportunities.
Virtual Assets
The Joint HKMA-SFC Circular on Intermediaries’ Virtual Asset-related activities, which clarifies expectations for financial institutions in Hong Kong who wish to provide Virtual Asset related services, provided clarity on the critical regulatory concerns regarding VA-related activities – this coupled with HK Financial Services and the Treasury Bureaus invitation in Q4 of the VA community to “join hands with us and leverage on Hong Kong’s status as an international financial centre” looks to provide additional opportunities for corporate governance professionals to further develop the sector in 2023.
Clara Shing
Associate Director FS Risk +852 2520 5844 clarashing@puresearch.com
Fabienne Cheng
Associate Director FS Risk +852 2520 4377 fabiennecheng@puresearch.com