Risk Manager

Risk Manager Definition

A risk manager takes care of financial risk management of an organization by proactively identifying and analyzing potential risks along with the development of preventive measures to either entirely remove or minimise these risks. Risk Management is a vital role in banks, non-banking financial institutions and other corporate houses. A risk manager is a qualified finance professional who specialises in dealing with credit, investment, market, and operational risks that organisations may face during their business.

Risk Manager

You are free to use this image on your website, templates etc, Please provide us with an attribution linkHow to Provide Attribution?Article Link to be Hyperlinked
For eg:
Source: Risk Manager (wallstreetmojo.com)

Job Responsibility of Risk Manager

How to Become a Risk Manager?

The candidates who are willing to start a career in risk management must have a college degree, relevant certifications, and related experience, as briefly discussed below:

#1 – Education

The minimum educational requirement to become a risk manager is a bachelor’s degree. However, advanced or master’s degrees, such as MBA, go the extra mile as recruiters typically prefer postgraduates to graduates, if available. There are various courses offered for risk management at both undergraduate and graduate levels, and some even provide risk management degrees.

#2 – Certification

There are several risk management certifications available that are pursued by aspiring candidates to stay ahead of the competition. Certifications can either act as a launching pad for the new entrants or catapult the career of the existing professionals in the field of risk management. However, some companies don’t seek such certifications.

#3 – Experience

Typically, companies prefer candidates with a background in management science or the development of predictive models. For instance, a securities firm looks for candidates who have experience in tracking market losses on securities held by the trading desks. As such, prior experience in the relevant field is always invaluable for a risk manager role.

Qualifications & Skills of Risk Manager

#1 – Qualifications

Some of the undergraduate courses available in the field of risk management are as follows:

  • Business Administration in Risk Management and Insurance
  • (Hons) in Finance, Investment, and Risk
  • Risk Management and Insurance
  • Bachelor in Finance and Credit

Some of the postgraduate courses available in the field of risk management are as follows:

  • Risk Management and Insurance
  • MBA in Risk Management
  • Master’s Degree in Systemic Risk
  • Cyber Risk Strategy and Governance
  • Cyber Risk Management

Some of the recommended certification courses in the field of risk management include:

#2 – Skills

A risk manager should possess the following essential skills to succeed in their career:

  1. Math Skills: They should have exceptional quantitative skills as risk management roles involve lots and lots of number crunching in a fast pace work environment.
  2. Organisational Skills: The ability to sort and organise things is vital as risk managers deal with a massive volume of information, documents, and data in a short period.
  3. Communication Skills: They are required to explain various concepts to individuals from varying backgrounds, and hence good communication skill is a must for risk managers.
  4. Writing Skills: Risk managers prepare reports day-in-day-out and so excellent writing skill is crucial for this role.

Job Outlook

Typically, the risk managers always stay in demand as and when the economy grows as it increases the risk of identity theft and data breaches in all the industries. In the US, employment opportunities for risk managers are expected to grow from 697,900 in 2019 to 806,000 in 2029, at a significantly higher CAGR of 15%.

Salary of Risk Manager

Typically, the salary of a risk manager depends on various factors, such as educational qualification, relevant certification, and length of industry experience. As per the U.S. Bureau of Labor Statistics, the median salary of risk managers in the US was $129,890 in May 2019, with the bottom 10% earning less than $68,370 while the top 10% was earning more than $208,000. Additionally, the salary of risk managers varies across industries, and the ones that offer salary more than the overall median include professional, scientific, and technical services ($152,810), management of companies and enterprises ($145,280), and manufacturing ($130,900).

Recommended Articles

This article has been a guide to What is Risk Manager & its Definition. Here we discuss how to become a risk manager along with their job responsibilities, qualifications, skills & salary. You can learn more about from the following articles –