Quant risk is the new black

Itís a great time to have risk ñ someone elseís. Suddenly everyoneís screaming for quant risk specialists.

The Robert Walters Salary Survey 2008 says salaries have jumped to AU$135k for quant risk specialists with six plus years' experience, up from AU$120k last year. In fact, anyone working in risk will be at least 10% better off than in 2007.

Is demand up? ìAbsolutely,î Dean Unkles a recruiter Hamilton James Bruce tells eFinancialCareers. ìEveryone needs them because it looks as if no one has been using them,î says Simon Solomon at Plan for Life researchers.

Whoís hiring? ìInsurers,î says Edmund Gill at Hays.

ìBanks and corporates,î says Unkles.

ìFund managers,î says Lee Humphrey at Derwent Executive.

ìBoutique hedge funds,î says Chris Cook at recruiter Jon Michel.

What do they want? Pure maths, finance, science and engineering degrees, preferably PhDs topped up with one to six yearsí experience.

ìArbitrage, currencies, derivative pricing strategies, Monte Carlo simulations and macro-econometric stress testing: the more complex the work experience, the better,î says Laurence Tempany at recruiter Reed Banking and Finance.

ìPure quantitative funds make a science of modelling, trying to eliminate the subjective human bias from investment choices. It takes extreme mathematical and econometric skill to create systems and quant screens. Now it will take equal skill to track and revise those systems,î says Derwentís Humphrey.

Humphrey says bonuses for quant risk types vary. Away from the front line, theyíre likely to be anything from 30-50%. But for those working closely with traders or asset managers 50-100% is the norm.

Robert Walters expects more demand in 2008, more salary rises and more retention strategies to get and keep high-calibre staff.

That sounds like a no-risk guarantee for anyone thinking of becoming a quant.