Risk professionals earned less in 2019 than in 2017, RIMS survey says
The 2019 Risk Management Compensation Survey reveals interesting salary differences in the field based on education, position, location, and more.
RIMS newly released 2019 Risk Management Compensation Survey reveals risk professionals at all levels and responsibilities in the U.S. experienced an average 1.7% base salary decrease in 2019 compared to 2017. In Canada, risk practitioners saw an even more significant reduction of 4% in average base salary for the same period.
The bi-annual survey provides detailed compensation analysis by industry, location, and position for virtually all risk professional positions. The study also explores the impact of education, experience, and demographical data on compensation, as well as benefits and additional cash compensation programs available to practitioners.
Gender gap persists
The 2019 survey collected responses from 1,467 full-time risk management professionals in the U.S. and Canada. Individuals ranging from chief risk officer and director of ERM to risk management analyst and insurance & risk manager participated in the study.
Among other findings from this year’s survey, one of the more illuminating data points is evidence of a continued gender pay gap in the field. According to the study, the pay gap between male and female risk professionals was 14% in 2019, a slight decrease from 2017 (17%). The study does, however, note that males in the sector tend to have higher levels of education and more experience. For example, 95% of male respondents and 85% of female survey takers noted having at least a bachelor’s degree.
Additionally, more men have supervisory responsibility (73%) versus women (62%), also contributing to the salary differential, RIMS says.
In recent years, women have made advances in entering senior-level risk management positions — consider a 2016 study from Oliver Wyman, which indicated 10% of CROs were women, up from 7% in 2013. However, the compensation survey results show there is still room to improve in representation and pay equality in the risk management sector.
High-level salary increases
The survey also reveals the median annual base salary for risk professionals in the United States, as of June 1, 2019, is $118,000. While findings show a decrease in average base salary over two years from the 2017 survey, the reported 2019 median base salary is a 3.8% increase over the year prior.
Other key findings of the 2019 survey include:
- The median base salary for Canadian RM professionals is CAD$101,000 as of June 1, 2019.
- Chief risk officer salaries in the United States increased by 4% to $198,900.
- Individuals in risk management analyst (insurance) positions earn a median annual base salary of $79,000 — more than $119,000 less than the top-paid group.
- U.S. risk professionals with a degree higher than a bachelor’s earned $37,300 more than those without a bachelor’s degree.
“While overall compensation remained relatively stable, increases in pay for chief risk officers and directors responsible for strategic risk management and enterprise risk management highlight the profession’s evolution,” said RIMS CEO Mary Roth in a release. “Organizations are realizing the importance and value of compensating high-level risk professionals who are prepared to contribute to the organizations’ strategy and growth. This benchmarking tool gives senior business leaders the insight to make informed decisions to develop sustainable risk management departments and capabilities.”
To read the full 2019 Risk Management Compensation Survey report, visit the RIMS website.
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