Operational Risk Salary Guide UK Complete Compensation Analysis
Market Update: The operational risk function has become increasingly critical as banks navigate complex regulatory requirements and emerging risks. With 95% of employers struggling to hire qualified candidates and compensation being the primary challenge (63%), operational risk professionals are commanding premium salaries in 2025.
Quick Salary Overview
Entry Level: £40,000 – £70,000
Mid-Level: £60,000 – £120,000
Senior Level: £110,000 – £145,000+
Compensation Overview
Operational Risk Salary Table 2025
| Position Level | Title | Base Salary Range | Daily Rate (Contract) | Years of Experience |
|---|---|---|---|---|
| Entry/Mid Level | Analyst/Senior Analyst | £40,000 – £70,000 | £300 – £425 | 0-5 years |
| Manager | Manager (AVP) | £60,000 – £90,000 | £400 – £550 | 5-8 years |
| Senior Manager | Senior Manager (VP) | £90,000 – £120,000 | £550 – £700 | 8-12 years |
| Director | Director | £110,000 – £145,000 | £600 – £850 | 12-15 years |
| Head of Department | Head of Operational Risk | £120,000+ | £800+ | 15+ years |
Compensation Breakdown by Experience
| Experience Level | Typical Background | Key Skills Required | Average Total Comp |
|---|---|---|---|
| 0-3 years | Graduate programs, Big 4 audit | Risk assessment, Excel, regulatory knowledge | £45,000 – £60,000 |
| 3-6 years | Risk analyst roles, controls testing | RCSA, KRI development, project management | £65,000 – £85,000 |
| 6-10 years | Team leadership, framework design | Stakeholder management, regulatory reporting | £90,000 – £115,000 |
| 10+ years | Department head, board reporting | Strategic planning, executive presence | £120,000 – £160,000 |
📊 Market Statistics
- 95% of employers struggling to hire operational risk professionals
- 63% cite compensation as primary hiring challenge
- 58% report lack of technical/regulatory knowledge in candidates
- 20-30% salary premium for niche specializations (cyber risk, model risk)
Contract vs Permanent Rates
| Level | Permanent Annual | Contract Daily Rate | Implied Annual (Contract) | Premium % |
|---|---|---|---|---|
| Analyst | £55,000 | £362 | £83,260 | +51% |
| Manager (AVP) | £75,000 | £475 | £109,250 | +46% |
| Senior Manager (VP) | £105,000 | £625 | £143,750 | +37% |
| Director | £127,500 | £725 | £166,750 | +31% |
💡 Market Insights for 2025
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High Demand Areas:
- Technology Risk: Cloud, AI/ML risks commanding 15-20% premium
- Third-Party Risk: Supply chain focus post-recent disruptions
- Climate Risk: New regulatory requirements driving demand
- Operational Resilience: Post-pandemic priority area
Factors Influencing Salary
| Factor | Impact on Salary | Details |
|---|---|---|
| Institution Type | ±20-30% | Bulge bracket banks pay highest, followed by tier 2 banks |
| Location | ±15-25% | London commands premium, regional roles 15-25% lower |
| Specialization | ±10-20% | Cyber, model risk, regulatory specialists earn more |
| Certifications | ±5-15% | IOR, PRMIA, relevant professional qualifications |
| Regulatory Experience | ±10-15% | Direct regulatory engagement adds significant value |
Career Progression Timeline
| Years | Typical Role | Key Milestones | Salary Progression |
|---|---|---|---|
| 0-2 | Graduate/Junior Analyst | Learn frameworks, support RCSAs | £40,000 – £50,000 |
| 2-4 | Analyst | Lead assessments, own risk areas | £50,000 – £65,000 |
| 4-6 | Senior Analyst | Mentor juniors, complex projects | £65,000 – £75,000 |
| 6-8 | Manager/AVP | Team leadership, stakeholder management | £75,000 – £90,000 |
| 8-12 | Senior Manager/VP | Strategic initiatives, board reporting | £90,000 – £120,000 |
| 12+ | Director/Head | Department strategy, C-suite interaction | £120,000+ |
⚠️ Important Considerations
- Salaries shown are base only – total compensation includes 10-40% bonus
- Contract rates assume 230 working days per year
- London-based roles; reduce by 15-25% for regional positions
- Exceptional circumstances may exceed these ranges
Top Paying Employers 2025
- Tier 1 Investment Banks: Goldman Sachs, JP Morgan, Morgan Stanley (pay 20-30% above market)
- Major UK Banks: Barclays, HSBC, Lloyds, NatWest (market rate to +10%)
- International Banks: BNP Paribas, Deutsche Bank, UBS (market rate to +15%)
- Fintech/Challengers: Revolut, Wise, Monzo (competitive but equity-heavy)
Skills That Command Premium Salaries
- Technical Skills: Python/R for risk analytics (+15-20%)
- Regulatory Expertise: Basel III/IV, ICAAP, ILAAP (+10-15%)
- Emerging Risks: Cyber, climate, AI/ML risks (+15-25%)
- Project Management: Risk transformation programs (+10-15%)
- Data Analytics: Advanced dashboard creation, automation (+10-20%)
Data accurate as of January 2025. Market conditions may cause variations.
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