The Salary Range for a Risk Manager
Risk managers have traditionally enjoyed better salaries and job prospects than other professionals, but those desirable job prospects come paired with long hours in the office and extensive formal and on-the-job training. Risk managers tend to be employed in metropolitan financial centers such as London, Tokyo, New York City and Los Angeles. As with most career paths, a risk manager's base salary is commensurate with her experience and varies from business to business; however, a risk manager is often also compensated based on her job performance.
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25th Percentile
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The lower quarter of risk managers in the United States earned just under $87,000 per year, according to Salary.com. The lower 10 percent of risk managers earned just over $70,000. Compensation at this level often correlates with jobs in local government and depository credit intermediation, such as retail banks and credit unions, according to the U.S. Bureau of Labor Statistics. In the United Kingdom, entry-level risk managers earn between 22,000 and 30,000 Pounds Sterling annually, according to Prospects.
Median Salary
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Median risk managers earned around $97,000 annually in the U.S., according to Salary.com; the Bureau of Labor Statistics estimates that figure ranges between $72,000 and $135,000 per year. At this salary range, risk managers are employed in a variety of industries, ranging from insurance carriers to investment banks and investment corporations, according to the BLS. Nationally, risk managers who earn upwards of $82,000 annually are in senior-level positions, according to Pay Scale.
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75th Percentile
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The highest-earning risk managers in the United States start at around $115,000 annually and, in the 90th percentile, earn more than $135,000 per year, according to Salary.com. However, data from the BLS contradicts Salary.com's estimate, suggesting that an annual salary of $135,000 is only the upper end of a median salary for a risk manager. Senior-level or experienced risk managers in the United Kingdom can earn a base salary between 50,000 and 75,000 Pounds Sterling per year, according to Prospects.
Bonuses, Profit-Sharing and Commissions
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A risk manager's base salary is only the beginning of her compensation. Risk managers can also earn more than $8,000 in annual performance bonuses, according to Pay Scale. Some performance bonuses can be as high as $30,000 per year. Risk managers also qualify for profit-sharing, which can be as little as $1,750 or as much as $8,750 per year. Risk managers may also earn commission as a reward for earning money for their firms.
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References
- Photo Credit pen showing diagram on financial report/magazine image by Anton Gvozdikov from Fotolia.com
