Job profile

Risk Manager

Risk Manager Job Profile

What is a Risk Manager?

A Risk Manager is someone who is in charge of detecting, controlling, and eventually decreasing the risks that a company confronts.

Risk Management is a vital and crucial component of overall company management, having far-reaching ramifications. Financial performance, efficiency, production, health and safety, competitiveness, stability, and overall success are all directly affected by the Risk Managers actions.

Risk Management, in terms of its unique tasks, is a profession with many intertwined responsibilities and disciplines. Rather than identifying and managing hazards (which remains equally crucial), Risk Management is increasingly viewed as a tool to help firms accomplish their goals. Risk Management is no more a single, restricted discipline, but an interdisciplinary one that necessitates a holistic, integrated approach.

Identifying, evaluating, and managing the many risks to which a company may be exposed is one of the most critical components of running a successful organisation. Failure to recognise and plan for risk can lead to a company’s demise.

As new legislation emerges, Risk Managers must research, understand, adapt, and execute them as quickly as possible. Risk Management is all about being proactive. A reactionary approach entails dealing with an issue after it has developed into one. Risk managers must always be one step ahead of the game.

An investment in good Risk Management offers an effective and beneficial secondary insurance policy for any company.

Responsibilities

The size, nature, and purpose of the organisation for which the Risk Manager works will influence their responsibilities on a daily basis.

However, their principal tasks will often comprise any mix of the following:

 

  • In collaboration with top management, develop company-wide risk management strategies.
  • Production of reports and other important business documents for managers, stakeholders, and employees.
  • Identification, analysis and recording of all relevant risks and threats, in order to keep as critical evidence of risk management activities.
  • Continuous assessment of current risk management procedures in order to uncover possible flaws and possibilities for improvement.
  • Developing and implementing policies and procedures to reduce and control risks.
  • Liaising with management, stakeholders, and employees to gain an overall understanding of the company’s operations and the most pressing threats.
  • Provision of training and mentoring to workers across the organisation in order to promote a risk-awareness and avoidance culture.
  • Assisting project managers in assessing and gauging the risks associated with business initiatives at all levels in order to determine their viability.
  • Direct oversight of workplace health and safety standards in compliance with official legal and regulatory requirements.
  • Audit processes and procedures
  • Create contingency plans to manage crises

Salary

In 2022, the average Risk Manager's salary in the United Kingdom is £55,468 ranging from £32,000 to £97,000, depending on the individual's skill set, location of work, and experience.

There is a considerable wage gap across geographic and job role areas.

London offers an average annual income of  £62,584 ranging from £36,000 to 110,000, while the average additional cash compensation amounts to £9,435, with a range from £2,392 to £37,215. Making it the city with the highest pay scale for Risk Managers in the UK.

Working hours and work location 

Risk Management professionals work for a wide range of companies and organisations, while many are now concentrated in the banking and financial industries.

Risk Management experts are usually assigned to a certain location or office within a company’s network of offices.

Working hours are normally 9 a.m. to 5 p.m., Monday through Friday. At higher levels, you may anticipate working longer hours.

Part-time employment and career interruptions are more prevalent in larger organisations.

Qualifications

Although any graduate can work in this field, a degree in one of the following areas may improve your chances:

  • Risk management
  • Accounting
  • Finance
  • Statistics
  • Economics
  • Insurance
  • Business administration
  • Engineering
  • Mathematics
  • Law
  • Statistics.
  • Or a similar discipline at the very least.

A Master’s degree in Business and Administration with Banking and Finance (MBA with banking and finance) is beneficial and will put you in a better position to start earning the highest salary straight away.

By being certified as a qualified Risk Manager, you can ensure that you continue to grow your talents and increase your income. This entails earning internationally recognised qualifications.

There is a number of Risk Management certifications available, some of them are:

 

  • Chartered Enterprise Risk Analyst (CERA)

The Chartered Enterprise Risk Analyst (CERA) is a new, internationally recognized credential that covers the most extensive and rigorous demonstration of enterprise risk management (ERM) currently available.

 

  • Certified Risk Manager (CRM)

The CRM designation is one of the most essential qualifications for risk managers in the financial, insurance, accounting, and legal professions.

 

  • Financial Risk Manager (FRM) 

The FRM certification is widely regarded as the gold standard for financial risk professionals who work in financial markets. Candidates must pass two tough tests and spend two years in the field of risk management to get the FRM certification.

 

  • Professional Risk Manager (PRM)

The Professional Risk Managers’ International Association confers the title of PRM. Financial risk managers who pass four tests covering financial theory, financial instruments and markets, mathematical foundations of risk assessment, risk management methods, case studies, best practices, conduct, ethics, and bylaws are awarded this credential.

 

  •  Risk and Insurance Management Society Fellow (RIMS Fellow)

The RIMS Fellow (RF) Designation is a mark of professional distinction that acknowledges your mastery of risk management knowledge and dedication to quality.

It indicates the profession’s expected level of education, devotion, and ethics.

Skills

In order to become a Risk Manager you should possess or acquire the following skills:

must have skills:
  • Analytical skills

Risk Managers require analytical abilities to collect data and make crucial choices based on that data. They must also look for flaws and weaknesses in the systems, infrastructure, and other places that others may have overlooked.

  • People management and leadership skills

If managers can’t manage and lead their employees, all their problem-solving abilities are meaningless. To inspire and motivate personnel, Risk Managers require strong people and leadership skills. Risk Management may necessitate “rocking the boat” but managers must maintain their team’s respect in the face of adversity.

  •  Relationship-building skills

This skill complements the preceding one. Risk Managers must be able to form bonds with others, not only their direct subordinates. They should be able to work well with colleagues and supervisors from various departments.

  • Problem-solving skills

Problem-solving skills are also required of risk managers. While certain hazards may necessitate informing someone higher up the chain of command, others will be solved by the manager.

  • Financial knowledge

Risk Managers need to know how much network failures and security breaches cost on average. Everyone’s attention will be drawn to the financial danger. Managers must be aware of the consequences of lost productivity, lost money, and financial penalties, which may be catastrophic.

 

  • Strategic thinking

If a Risk Manager considers how various factors influence the firm as a whole, they may be able to devise a more effective strategy. Their duty is to look at the larger picture, and they may see something that others overlook.

  • Mathematics

Risk Management necessitates a great deal of maths and analysis. This requires a basic understanding of numbers and maths. Many analytical tools are available to assist with cost estimations.

  • Adaptability

Risk Management entails ongoing education and knowledge of current events. Ten years ago, no one had heard of ransomware. It’s becoming one of the most serious risks to businesses. News sites and trade periodicals should be read on a regular basis.

  • Regulation knowledge

Regulation is one thing that the government excels at. Regulation is ever-changing and continual. Risk Managers must devote effort to staying informed about and comprehending all new developments.

  • Business understanding

Risk Managers must have a thorough understanding of how a company operates in order to identify and evaluate risks. A thorough grasp of the business is required for this position.

  • Ability to quantify risks

After compiling a list of possible hazards, Risk Managers must be able to assess the likelihood and severity of each risk on a scale of their choice. They should have a comprehensive list that ranks the risks from most likely to least likely, and from most severe to least severe. The Risk Manager’s focus will be determined by this.

Work experience

The following are the five fundamental aspects of professional Risk Management strategies that define the work experience for any Risk Manager:

Risk Identification – First and foremost, the risk manager must do a thorough analysis of the business from both an internal and external standpoint.

This enables them to detect each and every relevant risk that constitutes a hazard in some way.

To be adequately prioritised, each risk must be assessed in terms of its severity and chance of occurrence.

 

Ownership Allocation – After identifying the risk, Risk Managers must concentrate on risk ownership, or who is in charge of overseeing or controlling the risk. Furthermore, they must consider the repercussions of each risk as well as the actions that must be taken in the event that it occurs.

This basically entails devising a strategy to address any and all threats to the company.

 

Planning Control Measures – Ownership allocation is followed by a thorough examination of each identified danger in order to establish the best technique for controlling, diminishing, or eliminating it entirely. Others risks can be shifted to others, some can have their possibility of recurrence reduced to near-zero, while some must simply be accepted and closely watched as they are.

 

Strategy Implementation –After you’ve completed the first three stages to build an all-encompassing risk management plan, it’s time to put it into action.

This is a process that frequently necessitates site-wide adjustments to operational processes as well as the participation of all employees.

Throughout the process, risk managers collaborate closely with top management.

 

Assessment and Enhancement – Effective risk management must be viewed as a continuous and dynamic process, not as a one-time administrative checkbox. The risk manager must continue the assessment and evaluation process forever in order to discover areas for improvement, key flaws in the present approach, and where it has shown to be most successful.

Career prospects

Because of the high level of standardisation in the financial services industry, Risk Managers with regulatory knowledge and expertise are in high demand. Companies are looking for applicants with excellent analytical abilities, as well as those who can think commercially and apply business acumen to their roles.

You are probably asking yourself what can I do with an MBA in Finance? The answer is, you have numerous profitable options to choose from.

Most Risk Managers work on a range of risk management projects, although others specialise in one or more specific areas, such as:

  • Market Risk
  • General Responsibilities
  • Corporate Governance
  • Regulatory and Operational Risk
  • Cyber andTechnology Risk
  • Business Continuity
  • Information and Security Risk
  • Market and Credit Risk
 

Various Risk Management jobs exist in various areas of an organisation. Here are some career opportunities to explore if you’re interested in identifying and analysing risks:

  • Risk Analyst
  • Insurance Analyst
  • Loss Control Representative
  • Risk Consultant
  • Risk Control Consultant
  • Risk Management Consultant
  • Risk and compliance investigator
  • Risk Manager
  • Financial Modeller
  • Business Risk Manager
  • Corporate Risk Manager

Risk Managers may be assigned to a bigger team or given complete responsibility for the company's Risk Management. From the position of Risk Manager, you’d be aiming to progress to General Risk Manager and ultimately, Chief Risk Officer (CRO).

Related Courses

Here are some MSc recommendations: 

This one-year full-time program, delivered by the University of the West of Scotland, will provide you with the executive training you need to kick-start your Risk Management career. The London Campus is located in the heart of London’s financial sector providing you with a close insight into the very heart of UK business.

Other related courses

FAQ Summary

A Risk Manager is someone who is in charge of detecting, controlling, and eventually decreasing the risks that a company confronts.

Risk Manager’s salary in the United Kingdom is £55,468 ranging from £32,000 to £97,000, depending on the individual’s skill set, location of work, and experience.

Although any graduate can work in this field, a degree in one of the following areas may improve your chances: Risk management, Accounting, Finance, Statistics, Economics, Insurance, Business administration, Engineering, Mathematics, Law & Statistics.

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