What Does a Risk Analyst Do?
Risk Analysts usually work in the financial sector giving companies advice about the major risk factors influencing their financial success. Risk Analysts can help determine if business ideas are viable based on the amount of risk the company shareholders want to take on. They collect data to determine possible losses and gains related to ongoing company operations or new projects. Risk Analysts also make recommendations on how to mitigate risk when business leaders choose to pursue a deal. They monitor fluctuations in key influencing factors to adjust their projections as time goes on.
Risk Analyst Skills and Qualifications
Risk Analysts should have certain skills and qualifications, which include:
- Analytical: Strong analytical skills are a must for a Risk Analyst. They must be able to quickly analyze a large collection of data, then create reports and determine results.
- Decision making: Risk Analysts are often in charge of making business and financial decisions for their clients. The ability to quickly analyze data and make a decision, such as which stock or whether or not to issue credit, is crucial.
- Communication: Written and verbal communication skills are important for Risk Analysts. They must communicate clearly and effectively with clients and team members at all levels.
- Project management: Risk Analysts often work on multiple projects simultaneously. They must be able to organize and manage their time to complete all projects.
Risk Analyst Salary Expectations
The average yearly salary of a Risk Analyst is $76,891. Risk Analyst salaries may range between $19,000 and $171,000 per year, depending on geographical location, level of experience and the industry in which they work. A Risk Analyst who works for a large financial or banking organization can expect to earn more than an entry-level analyst who works for a smaller company. The experience, certifications and level of experience of a Risk Analyst can also affect salary expectations.
Risk Analyst Education and Training Requirements
A minimum of a bachelor’s degree is often a requirement to work as a Risk Analyst. A Risk Analyst with a master’s degree can be a more competitive candidate. Risk Analysts usually come from a background in business, accounting, finance or statistics. Risk Analyst students may complete an internship during their education that allows them to begin developing important skills. They often continue their training while working in an entry-level position under the supervision of a more experienced Risk Analyst.
Risk Analyst Experience Requirements
Some hiring managers may prefer to hire a Risk Analyst with previous experience in their specific industry. Others might choose to hire an entry-level Risk Analyst while training them on the job. Some employers might also require new Risk Analysts to complete additional training through certifications or licenses.
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