To become a risk analyst, candidates typically need a combination of specialized training, certification, and experience in the field. People interested in pursuing a career in this field should expect to start at the bottom, as an assistant or trainee. A bachelor’s degree is usually the first step. Some universities offer risk management degrees, usually at the graduate level, but degrees in finance, business, computer science, and law can be substituted depending on the circumstances. You’ll need to work on building your professional network and honing your expertise once you’ve graduated. Analysts can work in a variety of fields, including finance, corporate finance, and insurance companies, to name a few. Though the work is similar in each, it necessitates slightly different skills, which can usually only be acquired through practical experience. It’s critical to be willing to work your way up to higher levels of responsibility.
Getting a General Understanding of the Field
A risk analyst, also known as a risk manager, uses actuarial tables and other information to identify risk or risk behaviors. He or she will predict possible outcomes and make suggestions to improve those outcomes using this information and analytical skills.
These professionals are extremely useful in a variety of settings, and as a result, you’ll typically have a wide range of specialization and work areas to choose from. Different branches, however, require different levels of training and expertise. As a result, experience in the insurance industry determining risk associated with homeownership policies will not necessarily prepare you to work for a multinational corporation assessing fraud risk. Knowing what you want to do, or at the very least having a general idea of where you want your career to take you, can help you get started on the right track.
Education is required.
While the requirements for becoming a risk analyst vary depending on the companies that hire analysts and the governments or regulatory bodies that regulate risk analysts, in most cases, you’ll need a bachelor’s degree and certification in the field. While a risk analyst’s bachelor’s degree can be in any field, degrees in business, finance, or law are usually preferred. If equivalent job-related experience can be demonstrated, some job descriptions may waive this requirement. Furthermore, some degrees can assist in reducing the typical certification requirements.
Training and Certification
Most businesses in the United States that employ risk analysts only hire certified risk analysts in addition to those with a degree. The American Academy of Financial Management awards this certification in the United States. In addition to the United Kingdom, the AAFM has providers in Asia and the Middle East. If you want to work as a risk analyst, you should look into the certification requirements for the region and profession you want to work in. Financial risk manager certification and chartered financial analyst certification are two other risk analyst certifications available.
Various Job Possibilities
Risk analysts come in a variety of shapes and sizes. The distinction is usually based on the analyst’s field of expertise. For example, a financial risk analyst would be well-versed in financial regulations and would analyze investment losses as well as the market in general. He or she would be better able to offer an educated opinion on investment decisions if he or she had this knowledge and information. An insurance risk analyst, also known as an underwriter, works for insurance companies to evaluate the collective risk of their insured members in order to protect the company from financial loss.
A specialized risk analyst may benefit from joining a professional organization that focuses on his or her field. A member of the Risk Management Association, for example, may benefit someone who evaluates credit, market, and operational risks. In exchange for the educational, research, career, and networking opportunities that these professional associations provide, they may charge a fee. The organization may also assist members in passing certification exams, and most offer a variety of networking opportunities to help you meet people in your field.