How to Become a Risk Manager

A Risk Manager, also referred to as a Risk Analyst, is a financial professional who is experienced in managing a firm’s investment portfolios and operational costs.

These professionals may work at mortgage firms, consulting firms, insurance firms or banking companies.

Individuals who want to become a Risk Manager will need a combination of innate skills and education in order to succeed in this profession.

A comprehensive background is preferable in order to understand and analyze the global marketplace used to invest their client’s assets.

Education Requirements to Become Risk Manager

The minimum educational requirement for individuals who want to become a Risk Manager is a bachelor’s degree.

Some employers may also seek candidates with a graduate degree; individuals who would like better job opportunities will benefit from a graduate degree.

Individuals beginning their undergraduate career to become a Risk Manager will need to focus on finance or a closely related field such as: economics, statistics, mathematics or business.

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An undergraduate degree typically takes approximately 4 years to complete.

Individuals pursuing a graduate degree to become a Risk Manager will need to pursue a master’s in business administration (MBA) which takes an additional 2 years to complete.

To be successful as a Risk Manager, individuals will need to have strong skills in finance, comprehension in risk systems for investments and an understanding in portfolio management.

Individuals can gain this experience with on the job training and their educational background.

The majority of employers also seek individuals with at least 5 years of experience working as Risk Managers.

Individuals can gain this experience by working an entry level position in the business or finance sectors.

Individuals must also secure a license and certification in order to become a Risk Manager.

Individuals can start with a series 7 license, the General Securities license, when first beginning their career and then move on to taking more advanced licenses.

Individuals can learn more information by visiting the Financial Industry Regulatory Authority’s website at FINRA.

Risk Manager Job Description

Risk Managers are professionals that work on behalf of their clients, typically large companies and organizations, to manage and provide advice on the firm’s investments and financial portfolios.

Risk Managers also use their analytical skills to make recommendations on the best way to invest client assets.

These professionals are also experienced in recognizing any potential losses and recommending actions to prevent losses.

A Risk Manager might work for a bank, private businesses, or healthcare facilities.

These professionals will handle the firm’s investment portfolios which can include stocks, overseas investments and foreign currencies.

In addition, Risk Managers will also assess other risk factors that can be present in operations.

Common risk factors may include the potential for robberies, physical location of a business, and potential injuries that can be caused to employees.

Risk Managers will provide feedback and suggest financial products such as insurance to help protect the firms from any financial loss.

Risk Manager Salary and Career Path

In 2012, the median annual salary for Financial Analysts, which includes the Risk Manager profession, was approximately $76,950.

Exact wages will depend on a variety of things including the type of business they work for, experience and years in the trade.

For example, individuals who work for insurance companies earn a median annual wage of $72,270 while individuals who work financial investment companies can earn up to $90,560 per year.

Wages will also depend on an employer’s policy revolving commissions.

The job outlook for all Financial Analysts, including the Risk Manager profession is expected to increase the number of job by 16 percent.

This growth is considered a faster than average growth and is attributed to the complexity of managing investment portfolios that comes from the global market.

In addition, Risk Managers must also have an in depth understanding of the geographical regions to determine the best global investments for their clients.

Individuals who would like to pursue a career as a Risk Manager have plenty of things to look forward to when entering this profession.

In addition to a healthy job outlook, Risk Managers can also look forward to a challenging career because of the changes that occur frequently in the financial market and the analytical skills needed to invest assets.

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