Description of a Risk Manager Position
All businesses are vulnerable to some form of risk. Businesses face risk in financial transactions or when they hire new employees. They also face risk when doing business with other organizations. Risk managers exist to control the amount of risk an organization is exposed to.
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Function
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Risk managers minimize the risk in financial and business transactions. Managers control risk by developing techniques and loss-prevention programs to reduce the liability of their organization. They supervise risk analyst staff and serve as a liaison between industry loss professionals and key members of management.
Risk managers work in a variety of industries. They are employed by insurance companies, brokerage houses and management firms. Managers are also found in financial investment companies as well as local governments.
Salary
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Risk manager wages vary depending on their individual job duties and the industry in which they work. According to the Bureau of Labor Statistics, risk managers earned an annual median wage of $99,330, as of May 2008. Managers on the low end of the salary range earned less than $72,030 while managers who earned the most made more than $135,070. Managers employed in the securities and commodities brokerage industry earned the highest wages, averaging $134,940 per year, as of May 2008.
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Education
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Entry into the risk-management field typically requires at least a bachelor's degree in business administration. Degrees in accounting, finance and economics are preferred by most employers. Many employers require graduate level degrees for more analytical risk management positions such as with credit and financial analysis companies.
Professional experience, in some cases, outweighs formalized education. Risk managers who are educated in unrelated fields often start their careers in entry-level management positions to gain the knowledge and experience necessary to take on more responsibilities.
Advancement
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Professional certification is available for managers who would like to advance their careers and broaden their skills. For example, the Association for Financial Professionals offers a Certified Treasury Professional credential to professionals with extensive training and experience in cash resources and risk management. Advancement opportunities open to risk managers include promotions to top management and executive positions as well as potential for entrepreneurship.
Similar Occupations
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Risk managers are sometimes called financial managers, credit or risk analysts, treasury officers and insurance managers. Most of these occupations have similar functions but reflect different titles depending on the industry. Professionals in these occupations manage financial risk, insurance risk, credit risk as well as the internal risks associated with the organization.
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References
Resources
- Photo Credit Young manager image by NiDerLander from Fotolia.com
