The Value of Risk Management: Inside the RIMS 2025 Compensation Survey

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Expanded Role Scope vs. Compensation

Justin asks if pay matches broader duties; John and Kristin advise embracing varied assignments to grow professionally.

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Episode notes

Welcome to RIMScast. Your host is Justin Smulison, Business Content Manager at RIMS, the Risk and Insurance Management Society.

In this episode, Justin interviews Kristen Peed, RIMS Ex Officio, and RIMS Board Member, John Kline, about the results of the 2025 RIMS Risk Professional Compensation Survey, covering Risk Professionals in North America. They discuss the growth trend in base salaries for risk professionals in the U.S. and Canada and what this growth represents. They also dig into the median salary of Chief Risk Officers in both nations and how that reflects on the perceived value of the risk profession today. They discuss the worth of experience and certifications for a risk career. They cover the variety of assignments attached to the roles of risk professionals, and the value of expanding the responsibilities of your role over your career. They discuss the rising generation of risk professionals and the need to ensure the transfer of knowledge as the more experienced risk managers retire.

Listen for thoughts on incentives for contributing to the long-term stability and growth of your organization.

Key Takeaways:

[:01] About RIMS and RIMScast.

[:16] About this episode of RIMScast. We will review the results of the RIMS 2025 Compensation Survey with Kristen Peed and John Kline. But first…

[:40] RIMS Virtual Workshops. On March 17th and 18th, RIMS will align with AFERM for a two-day RIMS-CRMP-FED Exam Prep Course.

[:51] The next RIMS-CRMP Exam Prep Course will be on April 21st and 22nd, and then again on June 9th and 10th. Registration links are in this episode's notes.

[1:00] On April 15th, we have a virtual workshop covering "Emerging Risks", led by Joseph Mayo.

[1:12] Register today and strengthen your risk knowledge. RIMS members always enjoy deep discounts on the virtual workshops.

[1:19] Webinars. On March 12th, Global Risk Consultants returns with "Don't Waste the Soft Market: Where to Reinvest Insurance Savings Before the Window Closes".

[1:34] We had to reschedule the "Hard Hats & High Stakes: Women Leaders Shaping Construction Risk Management" Webinar that was scheduled for March 6th. Registrants should have received an email about the rescheduling. We will soon confirm the new date.

[1:51] Register for these and other webinars by visiting RIMS.org/webinars and the links in this episode's show notes.

[2:01] On with the Show! We are delighted to be joined by RIMS Ex Officio, Kristen Peed, and RIMS Board Chair, John Kline, to discuss the findings of the RIMS 2025 Compensation Survey.

[2:15] This biannual survey provides detailed compensation analysis for virtually all risk management positions, as well as the impact that education, experience, and other demographic data have on salaries.

[2:27] The report also provides data about risk management reporting structures, team size, benefits, and additional cash compensation programs. It's a North American study. There are some positive trends that we're going to explore with Kristen and John, so let's get to it!

[2:42] Interview! Kristen Peed, John Kline, welcome to RIMScast!

[3:01] As Ex Officio, Kristen hasn't seen the inside of airports as often. Last year, Kristen was on 98 flights.

[3:54] John has been on the RIMS Board for five years. He says the Board is a great team of people. It's a privilege to serve.

[4:31] As Kristen and John both have a vested interest in RIMS and the future success of the profession, Justin wanted them together on the show to review some of the high-level points of the Compensation Survey. The survey is available through a link in this episode's show notes.

[4:51] Justin states that the median salary for U.S.-based risk professionals is now $160,000; it's $140,000 in Canada. Both figures are up over the last decade and since the last survey, in 2023.

[5:20] Kristen sees the sustained salary growth as a clear signal that risk management has moved from a support function to a strategic function. Organizations aren't just paying us for insurance placement or procurement but for our insight, foresight, and decision support.

[5:42] Kristen says that over the last decade, risk professionals have been pulled into conversations around cyberresilience, operational continuity, regulatory exposure, capital strategy, and reputation. Those are board-level issues.

[6:00] When compensation grows steadily and not in spikes, it reflects the recognition that good risk management is necessary to protect enterprise value and enable smarter growth.

[6:16] Kristen is seeing that the market is saying risk leaders are not cost managers anymore; they are people protecting the value of their organization and creating that value, as well.

[6:29] John agrees with Kristen. He adds that he thinks, as an industry, we have gotten to be more professional. RIMS has worked on this for years: How do we get the people in this profession to be treated as professionals, like an attorney or an accountant, not procurement?

[6:58] John thinks the practitioners have upped their game, becoming much more technically competent, participating in professional development, and becoming more involved at an executive level at corporations.

[7:27] John also sees practitioners becoming more involved in the industry. Taking roles on advisory groups at insurance companies and brokers. They're getting to be active participants. Management recognizes that these individuals do a good job of representing the company.

[7:48] John thinks it's a combination of better technical skills and greater recognition, which allows them to have that seat at the table. It's a host of things.

[8:03] Justin recently had Cynthia Garcia as a guest on RIMScast. Cynthia is the Chief Risk Officer for Bernards Construction Company in California. Justin is seeing more folks like her, who have the CRO role, as RIMScast guests.

[8:24] With more Chief Risk Officers and VPs of Risk Management in the U.S. now reporting a median salary of $245,000, which is up dramatically from 2023, it seems like the market is catching up with the importance of risk professionals, especially senior-level risk professionals.

[8:52] Kristen thinks part of it is market catch-up. When she moved into her role at Sequoia, she upped her game. Leadership came to her and tapped her for things she never thought she would get to experience. Those things increased her responsibilities and shifted her into the CRO role.

[9:28] Kristen says the CRO role has matured. The risk leaders are expected to really look at enterprise risk, insurance strategy, capital efficiency, governance, and how they can help their business be more resilient.

[9:46] Kristen reports directly to the CEO and works directly with the CFO and CISO. She's not just managing programs; she's being integrated into the decision-making process.

[10:04] That level of influence requires judgment, credibility, and the ability to lead cross-functionally. That's what the compensation reflects. Kristen doesn't see it reverting. She sees it stabilizing at higher levels as those expectations remain elevated.

[10:27] There are 21 people on the two teams that report to Kristen.

[10:42] John says, having been in the industry for several years, people who sit in our chairs probably understand the company as well as anybody else.

[10:56] John says part of our job is to look at all the nooks and crannies and understand everything, whether it's property exposure, premises, product, reputation, or Directors and Officers liability. We get engaged in Errors & Omissions. We get engaged in cyber.

[11:18] We have become part of the team that understands holistically. John's job is a holding company. He works holistically. He thinks the compensation and the responsibility continue to catch up with each other.

[11:50] One area John sees that needs work is corporate risk. We probably need to carve out operational, enterprise, and insurable. If you work at a bank, you have credit risk and capital risk; there are a lot of other risks where we don't have the skillsets.

[12:15] John says that in different industries, the CRO or Risk Manager will encompass different things. We probably need to focus on the operational, enterprise, and insurable risk, and carve out the credit risk, the capital risk, and the liquidity risk.

[12:48] John is a team of one. Anybody in his position has to have good communication skills and a lot of support. John can't do what he does by himself. He networks within the organization. He has contacts throughout the organization. He has outside business partners.

[13:37] John wants to walk together, shoulder-to-shoulder with his business partners. He sees them as more than collaborators. If you want to go far, you go together.

[14:22] Kristen says that leadership without direct authority is a critical skill. When you're a team of one, you learn how to direct people when you don't have actual authority over them. Collaborating with them and communicating well are critical to that skillset.

[14:45] Kristen says a CRO is just a title. Titles vary across corporations. What someone with the CRO title does is not more important than what a Director of Risk Management does at another company. Functions are different across different companies.

[15:17] A Quick Break! RIMS is once again supporting the FERMA Global Risk Manager Survey 2026.

[15:30] Now in its second consecutive global edition, the survey, led by FERMA, brings together insights from Europe, the U.S., Latin America, Asia Pacific, and Africa, offering an international perspective on how the risk management perspective is evolving.

[15:46] Surveys are anonymous, and the final report is free. The deadline to participate is March 31st. A link is in this episode's show notes.

[15:56] RISKWORLD 2026 will be held from May 3rd through the 6th in Philadelphia, Pennsylvania. RISKWORLD attracts more than 10,000 risk professionals across the globe. It's time to Connect, Cultivate, and Collaborate with them.

[16:12] Booth sales are open now. General registration and speaker registration are also open right now. Marketplace and hospitality badges will be available starting on March 3rd. Links are in this episode's show notes, and be sure to check out RIMS.org for more information.

[16:31] The Second Annual RIMS Texas Regional Conference will be held in San Antonio from August 10th through August 12th.

[16:38] The call for submissions for educational sessions is open through March 18th. Check out the link in this episode's show notes and make a pitch! Hopefully, you get selected, and we see you in San Antonio!

[16:51] The RIMS Western Regional Conference will be held from October 4th through the 7th in Seattle, Washington. Registration is open, and you can also submit a session. Visit RIMSWesternRegional.com and the link in this episode's show notes for more information.

[17:09] Let's Return to Our Interview with John Kline and Kristen Peed!

[17:31] We're talking about the RIMS 2025 Compensation Survey. There is so much great information in it. It is available through RIMS.org and the link in this episode's show notes.

[17:45] Nearly all compensation survey respondents, 97% in the U.S. and 90% in Canada, perform functions beyond risk management, including insurance, claims, business continuity, compliance, and even ESG.

[17:58] Justin asks if compensation is keeping pace with the expanding scope and complexity of the role.

[18:06] John says he feels he is fairly compensated. He enjoys getting involved in multiple areas. Procuring insurance is a large part of his role, but he brings a lot of other value to the organization.

[18:43] John says he enjoys assisting in other areas of risk. It helps his professional development. It brings variety to his job. He works very closely with business continuity to help them quantify and understand it. He needs to know that for his insurance renewals.

[19:08] Years ago, John was responsible for the ergonomics program of Bank of America, one of the largest employers in California. He had a wonderful team and really enjoyed the job. It led to his accomplishment of driving down workers' compensation claims.

[19:58] John says you ought to change your job every two years. If you're doing your job two years from now, the same job, exactly the way you're doing it today, you're not growing. You're not developing your job.

[20:20] John says he was in the same job, at one point, for almost 17 years. Every year, what he did was entirely different. He had the same title for 17 years. Every two years, he remade what he did.

[20:40] John says growing your job shows your recognition of the increase in compensation and increased responsibility.

[20:50] Kristen has a unique position at Sequoia. She's not sure that what she does exists at any other company. She has the opportunity to work in underwriting and risk management for her company and brokerage. She was brought on as the internal risk manager.

[21:10] Kristen also has the opportunity to oversee a team of underwriters and claims professionals who work on workers' compensation and employment practices liability that go into the PEO captive. Learning about all that was fun.

[21:28] About a year ago, Kristen had the opportunity to take over the leadership of the property and casualty brokerage team. She gets to see all three facets of this industry, sitting in one role.

[21:49] Because of these experiences Kristen has had, now she sits in on strategic decisions about opening new companies. Sequoia is getting ready to open up another company.

[22:02] Kristen is part of the leadership team, looking at how to scale this. It's more than insurance decisions. It's about how to do this business, how to scale it, compliance, and governance.

[22:22] Kristen says to look for opportunities to raise your hand. Expanding your skillset will help support your position with your leadership when you're going through the merit cycle.

[22:46] Justin says the top industry impacts in the survey include attracting new candidates, cyber exposure, adoption of new technologies, AI, and hybrid workshifts. The median age of U.S. risk professionals is 51. Justin asks Kristen and John if we are facing a succession challenge.

[23:11] Kristen says a big yes on that. John says succession planning and talent retention within this industry are the number one challenge. It is estimated that over the next five years, 350,000 people will retire. Over 50% of the industry is over 55. This is huge.

[23:52] With those retirements, the industry will lose a tremendous amount of intellectual capital and experience. At the same time, this large group of professionals retiring in the next five or 10 years provides types of opportunities that never existed before for people in their 30s and 40s.

[24:26] John says talent is the number one challenge for the industry. People coming into it are going to learn the skillsets. There's a lot this industry has to offer. There's a wide range of roles and a huge opportunity for growth. It touches so many different areas of the organization.

[25:02] John says people are going to need a risk professional. The uncertainty in this world is increasing. The speed of change is getting faster. They will need someone like us. Make sure your organization knows you're the person they want, and so they don't look for someone else.

[25:42] Kristen says she doesn't think risk has a talent shortage. She says Spencer Educational Foundation is doing a great job of recruiting into our industry. What we need to keep our eye on is the knowledge transfer and making sure that we're training the next generation.

[26:05] Kristen believes the solution isn't just recruiting, it's the development. Make sure you're bringing that next generation to the RISKWORLD Conference so they understand how business is done, and they're developing those relationships.

[26:18] Kristen says we shouldn't be focused on people late in their careers, like John and I. Risk isn't a back-office role anymore. It's out there on the front lines. Treat the next generation that will step into our shoes as the front lines.

[26:50] Budget to bring the next generation to conferences. Include them in meetings and opportunities to be strategic. Teach them. If we don't transfer that knowledge, we risk losing that judgment. It's not a headcount issue but a knowledge transfer issue.

[27:12] Another Quick Break! The Spencer Educational Foundation's Risk Manager on Campus application period will open on April 1st, 2026, and it will close on June 30th. Grant awardees, colleges, and universities are typically notified in September.

[27:38] The Course Development Grant application deadline for Interval Number 2 will be on June 15th, 2026. Award notifications will be sent out in late July.

[27:52] General Grant applications will open on May 1st, 2026, and the application deadline is July 30th. Internship Grant applications open on August 15th and close on October 15th.

[28:05] Links to each of these grants are in this episode's show notes. Visit SpencerEd.org for more information.

[28:13] Let's Conclude Our Interview with John Kline and Kristen Peed.

[28:23] Justin cites the survey, saying 79% of U.S. professionals were eligible for additional cash compensation, with performance, especially organizational performance, driving the most payouts. Justin asks if this is an appropriate incentive program.

[28:45] Kristen says linking compensation to organizational performance makes sense. But risk doesn't exist in a vacuum. We have to make sure we're not rewarding only short-term results.

[28:57] Kristen is eligible for incentives for both short-term organizational performance of a year and long-term incentives for multi-year organizational performance. That gives her time to put into play strategically things that will impact the organization in the long term.

[29:20] Kristen doesn't know that a lot of organizations have evolved to where they're doing both short-term and long-term incentives and bonuses.

[29:28] Kristen says that is a way we could incentivise risk professionals to make an organizational impact that permeates throughout the enterprise. It rewards something that's more overarching than one year's performance.

[29:58] John agrees with Kristen. This is part of the evolution of the profession. John has base compensation, short-term incentives, and long-term incentives that he's had for years. It helps you get alignment with management for the long-term success of the organization.

[30:19] John says most of us could save money in any given year, but we've got to look at stability for our programs. Management does not like wide fluctuations.

[30:42] It forces us to think strategically, like an owner or the C-suite. It helps develop stability, not only on the corporate side, but also on the broking side and the carrier side.

[31:02] For years, carriers in the reinsurance industry have had five- and ten-year incentives. It takes that long to see if a reinsurance contract is profitable. This is the evolution of the industry to align us better with the long-term objectives of the C-suites.

[31:51] John says, if I have wild fluctuations year to year, and I haven't kept the C-suite apprised of it for three years, management's not going to like that. I'm not doing my job.

[32:26] Justin points out that on paper, John is a department of one, but he works with several others. Kristen says in her last job, she was a department of one. What strategies can John and Kristen provide for risk professionals with very limited resources to use to transfer knowledge?

[32:47] Kristen thinks recognizing what your resources are is the place to start. You may have more resources at your fingertips than you realize. Your brokers can help you with the tools they may have. Your carrier partners may have other tools.

[33:11] Kristen stresses RIMS and RIMS.org for all the tools and information at your fingertips there, as well as the RIMS Engage social media platform, where you can reach out to other risk professionals to get their advice.

[33:28] Kristen thinks our industry is one of the greatest when it comes to collaboration and knowledge-sharing. She can call on her network for advice. You may be a department of one, but you are not alone. You have an entire community behind you to support you.

[33:58] Justin explains that RIMS Engage is exclusively for RIMS members, one of the many benefits of RIMS membership.

[34:11] John endorses everything Kristen said. He adds that you need to understand who your key stakeholders are. Those are the people who will support you. You have to set realistic expectations. As a team of one, sometimes things fall through the cracks.

[34:51] You have to have a plan. You make a plan, you work the plan. You can't just come in every day and ask yourself what you are going to do that day.d You need a plan for the day, even though something during the day will upset the plan.

[35:09] John says, "Communicate, communicate, communicate." John doesn't want to be a black box. If someone says they don't understand what he does, he sits down with them and tells them.

[35:50] Justin adds a quick plug for the RIMS-CRMP. It's a great way to enhance your knowledge. If you are a department of one, if you pass that RIMS-CRMP exam, you will have the capacity of several risk professionals.

[36:08] Kristen agrees. Credentials don't replace your experience, but they help you compound it fast. The RIMS-CRMP credential is incredibly valuable. It can help accelerate your knowledge. Risk management is a profession where judgment compounds over time.

[36:36] You earn that credibility by seeing market cycles, going through claims scenarios, and by having failures and then recovering from them.

[36:49] John says important credentials like the RIMS-CRMP show right away that you're dedicated to the industry. These are not easy certifications. They provide instant credibility.

[37:16] When you can put RIMS-CRMP on your signature line, you differentiate yourself. You show others you are furthering your education.

[37:38] Justin says we're going to see you both at RISKWORLD 2026 in Philadelphia! John Kline and Kristen Peed are omnipresent at RISKWORLD.

[37:52] RIMScast recently had 2025 Goodell Award Winner Randy Nornes on the show. He said he can't stand the word risk, even though he's made his career on it. He prefers the word uncertainty because risk has a negative connotation.

[38:29] Kristen says Sequoia's Chief Legal Officer has a saying, "Nothing bad happens." We have been prepared for everything. We have a playbook. We have practiced it. We don't talk about risk but about closing the gap and mitigating against those things.

[39:03] John says, this is an opportunity. He understands Randy's position. People understand what a risk is. What is uncertainty? John likes the term risk business rather than the term uncertainty business.

[40:14] John, Kristen, it has been wonderful to reconnect with you! I can't wait to see you again in two months! See you at RISKWORLD! [40:27] The RIMS 2025 Compensation Survey is available now. The links are in this episode's show notes. There are different tiers to access it.

[40:52] Special thanks again to Kristen Peed and John Kline for joining us to discuss the results of the 2025 RIMS Risk Management Compensation Survey! Members have the benefit of receiving the survey results for free. The cost is $500 for nonmembers. A link is in the notes.

[41:14] I've also got links to John Kline and Kristen Peed's prior RIMScast appearances and Kristen's RIMS-CRMP Story. Look for both of them at RISKWORLD 2026 in Philadelphiafrom May 3rd through the 6th.

[41:27] Plug Time! You can sponsor a RIMScast episode for this, our weekly show, or a dedicated episode. Links to sponsored episodes are in the show notes.

[41:55] RIMScast has a global audience of risk and insurance professionals, legal professionals, students, business leaders, C-Suite executives, and more. Let's collaborate and help you reach them! Contact pd@rims.org for more information.

[42:14] Become a RIMS member and get access to the tools, thought leadership, and network you need to succeed. Visit RIMS.org/membership or email membershipdept@RIMS.org for more information.

[42:31] Risk Knowledge is the RIMS searchable content library that provides relevant information for today's risk professionals. Materials include RIMS executive reports, survey findings, contributed articles, industry research, benchmarking data, and more.

[42:48] For the best reporting on the profession of risk management, read Risk Management Magazine at RMMagazine.com. It is written and published by the best minds in risk management.

[43:02] Justin Smulison is the Business Content Manager at RIMS. Please remember to subscribe to RIMScast on your favorite podcasting app. You can email us at Content@RIMS.org.

[43:14] Practice good risk management, stay safe, and thank you again for your continuous support!

Links:

RIMS Legislative Summit — March 18‒19, 2026 on Capitol Hill, Washington, D.C. | Register now!

RISKWORLD 2026 Registration — Open for exhibitors, members, and non-members!

Reserve your booth at RISKWORLD 2026!

Spencer Educational Foundation — Scholarships and Grants | Open Calls and Timelines.

RIMS Texas Regional Conference 2026 Education Content Submission — Deadline March 18, 2026!

RIMS-CRO Certificate Program In Advanced Enterprise Risk Management | April - June 2026 Cohort | Led by James Lam

RIMS Western Regional Conference — Oct. 4‒7, 2026 | Seattle, WA | Register Today and Submit an Educational Session!

RIMS Compensation Survey 2025 — Download Today | Press Announcement Here.

RIMS Risk Management magazine | Contribute

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