It is one thing to know what you want from your career, but it’s a whole other problem figuring out how to get there.
This article will help you understand risk management careers in terms of educational requirements, traits and qualities of certified risk managers, their job duties, the general process that is needed to become a certified risk manager and the overall national salary of certified risk managers.
How Risk Management Careers Start
What is a risk manager?
A risk manager is responsible for analyzing and measuring financial uncertainties that an organization may get exposed to. They come up with possible ways of reducing and controlling financial risks. For instance, when there are changes in commodity prices.
A certified risk manager is a professional who works either in private businesses or banks and manages finances.
- To identify areas with trouble. Once the area is identified, they investigate further.
- They constantly review the safety policies in an organization. They update these policies and make sure they adhere to standardized laws.
- Risk managers are responsible for the coordination of all activities required for risk management in an organization. They isolate any possible risks and prevent the occurrence of liabilities.
- Risk managers create, organize, plan, and manage risks in an organization.
How To Become A Risk Manager
Becoming a risk manager entails a series of career requirements. Educational requirements are not enough unless one possesses the qualities and traits for effective risk management. Here is an overview of what you need to become a certified risk manager:
Step 1: Earn a Bachelor’s Degree
A bachelor’s degree in a field dealing with accounting or finance is required. Apart from those, an additional degree in business administration or economics is recommended. You can earn an entry level in risk management jobs with these qualifications.
Some educational institutions, however, offer degrees in risk management and financial services. These classes focus on topics such as risk management, financial markets, investment analysis, taxation, etc. Learn more here.
You are recommended to complete an internship after your degree. Internships allow you to network with a professional risk manager. This creates numerous opportunities for you in future financial businesses.
Step 2: Earning a Graduate Degree
Many employers in risk management have favored a graduate degree. A degree in economics, business administration, and finance, for instance, are preferred.
There are educational institutions that allow students to focus on risk management in their programs. These programs include enterprise risk management, corporate finance, etc.
Step 3: Acquiring Experience
Entry level risk management jobs are easy to acquire if you have at least five years of experience. It is important to start your career by embracing entry-level jobs such as auditors, loan officers, financial analysts, etc.
The more experienced you are, the higher the chances of becoming a certified risk manager. Experience in this field is important as it reflects devotion and expertise.
Step 4: State Licensure Requirements
To become a certified risk manager in some fields require the possession of relevant licenses. For instance, working in a medical field will require a license in health care risk management. When you lack the relevant licenses; however, you can take pertinent exams.
Step 5: Acquiring Advanced Experience
The more you are exposed to the field of risk management, the more experienced you become. Risk manager degree is not as important to employers compared to experience. Many highly experienced risk managers open their own consulting firms.
Entry Level Risk Management Jobs
There are several jobs and career within the risk management field. Here are a couple of entry level risk management jobs:
- Operational risk- this refers to managing risks that may be caused by internal factors such as miscalculation in the finance department.
- Anti-money laundering- a risk manager, prevent money laundering in financial institutions.
- Market risk- this is managing risks caused by outside factors such as terrorist attacks.
- Sales and trading compliance- these are risk managers who work alongside sales people in banks. They make sure the activities of the bank are aligned with the local regulator.
- Monitoring and surveillance- these are risk managers that scrutinize suspicious activities such as fraud.
- Credit risk- this is a risk that occurs when an individual or a company refuses to pay their debts.
- Control room compliance- it manages risks caused by staff in a bank. This is when the staff gives out confidential information.
Traits and Qualities of Risk Manager
The most preferred qualities and traits include:
- You should be well organized
- You should possess strong analytical skills
- You should be able to work best, whether on your own or as part of a team.
- You should be very excellent in communication skills and building social relationships. This means that you should be able to utilize both written and unwritten skills. This quality is important, especially during writing reports.
- You should be able to focus keenly on details
- You should be great in mathematical skills. You should possess the ability to use mathematics in real life situations.
The salary of certified risk managers depends on the state they are in. Each state compensates its risk managers, depending on how many job postings are available. The average national salary of certified risk managers in America is estimated to be $103,743.
This number is based on information received from jobs advertised from indeed.com. It has been retrieved from both present and past advertisements. In terms of hourly compensation, certified risk managers receive $54.33. Monthly estimations have been estimated at $8,645.
Where to Work
There are 580,400 certified risk managers in the United States, according to the U.S. Bureau of Labor Statistics. In the United States, you can find work in the following institutions as a professional:
- Finance and insurance employs 29%
- Professional, scientific, and technical services employ 12%
- Management of companies and enterprises employ 11%
- Government employs 7%
- Manufacturing employs the other 7%
Risk Management Careers
Risk management careers hold a lot of potential for anyone interested. It is vital to make sure you have the requisite skills in order to get certified.
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