How Can I Become a Risk Management Analyst?
February 01, 2023
There are many professional reasons for pursuing a position as a Risk Management Analyst. You may want to think about whether you possess the right skills for this position, and the right interpersonal characteristics. A Risk Management Analyst position can be highly demanding.
Are you detail oriented? Someone who can stay calm and even tempered under stressful circumstances? Maybe you enjoy crunching numbers and doing mathematical cartwheels in your mind. Can you see yourself assessing whether a project will most likely be successful or not, and giving presentations and recommendations on your findings?
If so, then a career as a risk management analyst may just right for you. Risk management analysts have a wide range of responsibilities, including identifying and evaluating risky investments or projects, reducing risks, or assess strategies for investments. As a risk management analyst, you'll help to solve business problems that involve making the best decision and knowing what risks are worth taking. But how do you start a career as a risk management analyst? Read on to discover what it takes to become a risk management analyst.
Risk Management Analyst Skills to Acquire
Some important skills you'll need as a risk management analyst include soft skills, such as problem solving, presentation, verbal communication and negotiation skills. This role also requires professional and computational or analytical skills, such as data analysis, financial analysis, risk control and portfolio management. The exact responsibilities and skills required for this role will depend on your industry and employer.
Risk Management Education & Training Requirements
To become a risk management analyst, there are a number of educational pathways you can explore. One of the most common ways to become a risk management analyst is to go to college and pursue a bachelor's degree in finance or a finance-related degree, such as statistics or risk management. This traditional educational route takes about four years to complete. Most risk management analysts go on to pursue their master's degree as they continue their career path to more senior and executive roles. You can specialize in your field with an MBA, which can take an additional two to three years to complete depending on the program. Some schools offer graduate degree programs that specialize in risk management designed for professionals, such as Florida State's fully online master's degree risk management program.
Other non-traditional paths to pursuing a role in risk management as an analyst include boot camps and online certifications. For example, Coursera provides a career path to becoming a risk management analyst with their Investment Management Specialization online certificate program that professionals can purchase. Other professional development classes include professional organizations, such as the Project Management Institute's, or PMI's, risk management certification or the Risk Management Association's Operational Risk Management (ORM) Fundamentals Certificate.
Are there Risk Management Licensing Requirements to Consider?
Being a risk management analyst comes with a licensing considerations. These licensing requirements are specific to the state you are operating in, the company you work for, the industry you work in and the information you will provide. For example, the state of Florida requires risk managers working in the health industry to be licensed by the Agency for Health Care Administration.
__Who Hires Risk Management Analysts?++
You'll have a wide variety of employers to choose from that require the skills of a risk management analyst. Banks, financial institutions and IT enterprises typically hire risk management analysts to work for them. But you can also get a job with boutique financial firms and companies in other industries that rely on risk management analysis, such as companies in the insurance, manufacturing, aerospace and health industries. Risk management analysts work across the country, but employers are primarily located in major cities, such as New York City, San Francisco and Chicago.
Risk Management Analyst Salary Expectations
The average salary that risk management analysts earn depend on the location and years of experience that you have and source. You can expect to earn a salary that ranges somewhere between $49,000 and $102,000 depending on what city you work in, according to Glassdoor.
The national average annual salary for a risk management analyst across all industries is $73,377, according to Glassdoor. Payscale rates the average annual salary even lower as $62,922. Risk management analysts make between $75,618 to $103,57, according to analysis gathered from 34,300 sources via Indeed.
For example, a risk management analyst with less than one year of experience working in San Francisco makes $69,083 per year, while one with four to six years of experience makes an average of $87,811 per year. In addition to salary, risk management analysts have the opportunity to earn income from bonuses and profit-sharing opportunities. Here are some averages based on location, according to Glassdoor:
- Risk Management Analysts in Austin, Texas. Risk management analysts in Austin are paid an average of $62,514 per year,which is 15 percent below the national average.
- Risk Management Analysts in Boston. Boston-based risk management analyst make just 1 percent below the national average at $72,481 per year.
- Risk Management Analysts in Chicago. Chicago-based risk management analyst make $75,023 average per year in salary, which is 2 percent above the national average.
- Risk Management Analysts in Los Angeles. Risk management analysts in Los Angeles make an average salary of $71,366 per year, which is 3 percent below the national average.
- Risk Management Analysts in New York City. Risk management analysts who are based in New York City make 11 percent above the national average per year at $81,268.
- Risk Management Analysts in San Francisco. San Francisco-based risk management analysts make an average of $90,300 per year, which is 23 percent higher than the national average.
Becoming a risk management analyst requires a variety of skills from negotiation skills to advanced technical skills. The first step you should consider is obtaining an education in risk management. Consider the various options and time commitment required and your needs so you can choose the best route to being a risk management analyst.