Risk Manager

Risk Manager Career Overview

A risk manager is responsible for identifying, measuring, and prioritizing risks within a company. Economic theories and resources are utilized to predict and control a fiscal chain of events, compile reports, and to prevent financial hazards. Risk managers are also needed to develop investment strategies and execute cash management plans. By addressing monetary concerns and applying proven tactics, they help the company reach financial goals.

Risk management is crucial in today's business world, as organizations rarely make decisions or embark on new endeavors without heavily assessing the risks involved. Potential employees are likely to face competition in the workforce. To succeed in this field, a professional has to have strong analytical and mathematical skills. They must be able to communicate effectively, as they will be corresponding with clients, reporting to colleagues, and speaking to groups during meetings.

Risk managers typically work long hours, and they may be required to travel to personally handle offsite business matters.

Risk Manager Training and Education

To secure a career in risk management, a bachelor's degree is required in a field pertaining to accounting, finance, or business administration. Many employers are currently hiring corporate apprentices who have a master's degree in a related area of study. Companies are interested in recruiting graduates with knowledge of the latest financial technology and information systems.

In some industries, such as banking, work experience is more critical than formal education, and employees can advance through management training programs.

Risk managers can further prove their credibility by obtaining a professional certification. Some organizations that offer beneficial certification programs are the CFA Institute and the Association for Financial Professionals. Managers who work in the accounting realm can earn the title of a Certified Public Accountant (CPA) or a Certified Management Accountant (CMA).

Professionals engaged in risk management must continue their education through classes and training sessions in order to keep updated on contemporary global trading practices and laws, and to familiarize themselves with the latest financial technology.

Risk Manager Salary and Career Outlook

The employment rate for risk management is expected to increase 13% between 2006-2016, which is considered an average pace in comparison to other occupations. Since the number of applicants exceeds the amount of available jobs, the risk management industry is highly competitive, and professionals who hold a master's degree or a certification are at an advantage.

The need for risk managers will rise in accordance with the economy, and these professionals will be called upon to supervise investments, manage acquisitions, increase capital, and access global operations.

As banks expand, and augment their services, branch managers with insurance and investment knowledge will be needed. Managers who evaluate risks for insurance intentions will also be in demand.

The average salary for a risk manager is $90,970. However, these earnings are dependent upon the industry and location. Many professionals in this field receive financial perks and supplementary compensation, such as bonuses and stock options.

Career Fields/Specializations

Controller Career

Controllers supervise the transactions that occur within the accounting and auditing departments. Their duties include, but are not limited to, developing financial reports, preparing income statements, predicting earnings and expenses, and organizing information required by authoritative services.

Credit Manager Career

Professionals in this field manage affairs pertaining to insurance of credit, and they establish a company's credit limit. Credit managers develop credit rating criterion, and supervise collections for overdue accounts.

Finance Officers and Treasurers Career

Individuals with this focus manage oversee cash and implement budget control to ensure a company is meeting their financial goals. They are also responsible for developing capital funding plans and dealing with acquisition issues.

Cash Managers Career

Cash managers handle investment requirements by monitoring the flow of cash receipts and disbursements.

Insurance Manager Career

Insurance managers examine and monitor transactions in order to diminish potential risks and losses that could occur from business endeavors.

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