Risk manager crunching the numbers

7 Things You Should Know About Risk Managers

It’s not always enough to be a good business manager. There are many outside forces that threaten the security of businesses and it’s important to have an effective risk management program in place. At the head of this process is the effectiveness and quality of a risk manager. Here are 7 things you should know about a risk manager.

  1. Risk managers must be skillful in data analysis, risk consulting, financial analysis, statistical analysis systems and security risk management. To be familiar with the various type of risk management and be qualified to implement effective risk management programs, you must be knowledgeable of all areas of the business.
  2. Risk management careers are not limited to just a few industries. They may find jobs in many sectors and may specialize in the following areas.
    • Technology risk
    • Enterprise risk
    • Business continuity
    • Corporate governance
    • Operational risk
    • Regulatory risk
    • Credit and market risk
  3. Risk managers are generally individuals who work internally and therefore earn wages consistent with the specific industry they’re working in. However, according to Payscale.com, the average annual risk manager salary is around $82,000. Like most positions, the salary can vary based on education, training, and location.
  4. Risk managers have a job that entails high responsibility. As a risk manager, you’re responsible for identifying and managing the risks that businesses may face. It will also be your responsibility to ensure the employees, customers and even the reputation of the business is also safe from the various types of risks and threats. You’ll need to have excellent communication skills so you can get the staff to work with you towards the same common company objective.
  5. Risk managers must have training and education in several fields and must know a lot about business and industry in which they’re employed. Although educational requirements may vary from one industry to the next, you typically must have at least a bachelor’s degree and a few years of experience working in the industry to be hired as a risk manager. Certain industries, such as the healthcare industry, may also require certification or other form of licensure.
  6. Risk managers spend most of their job analyzing information. A great portion of the job involves performing detailed and documented risk assessments. In addition, you’ll spend time going through market reports, statistics and analyzing documents. It’s a “facts and figures” type of job. 
  7. This is a satisfying and rewarding career. Risk managers believe that an ounce of prevention is better than a pound of cure, and they use that philosophy to help protect their company.