Who is a risk manager?

The risk manager is a young profession, but already quite promising. The risk manager finds all kinds of risks in the activities of companies, as well as assesses the degree of their risk to the company and the estimated amount of damage. Based on this information, the risk manager develops recommendations that should help the company reduce the negative consequences of risk.

The scope of risk management (risk management) includes about one hundred kinds of risks. The most common of these areinvestment, credit, market, operational, insurance, legal, transport, exchange, competitive, personnel uncertainties and the risk of loss of business reputation. Is it worth buying these or other shares or securities? Which candidate to choose for a key position in the company? These questions will answer the risk manager.

Risk management services are in demand in various business areas, but most in risk managers need insurance and investment banking. Given the instability of our economy,companies constantly face uncertainty in their activities, and uncertainty is a risk. In small firms risk assessment is usually handled by management, but large companies often need a professional look, then a risk manager comes to the rescue.

Since the risk manager is a young profession,You can get it only in a couple of leading financial and economic universities. Therefore, people with a different education, usually economic and technical, often go to risk managers. Why is that? Because this profession usually requires high demands. The risk manager should understand not only risk management as such, but also in the economy (micro and macro), banking, securities market, accounting.

In addition, do not interfere knowledge in the field of law, international standards of financial reporting, higher mathematics and mathematical modeling. Plus English (spoken and written) forhigh level - without it now anywhere. Also, the risk manager should be an experienced PC user, have analytical capabilities and be ready to work in a sufficiently intensive mode.

Besides, the risk manager must be able to defend his opinion. There is no guarantee that the management of the companywill follow his advice: all decisions must be coordinated with the higher authorities. Therefore, the risk manager often has to not only assess the risk and develop recommendations, but also to defend his point of view and make sure that his recommendations really follow.

Often, future risk managers begin their activities in the related specialty, and then, gaining knowledge and experience, switch to risk management. For example, insurance risk managersoften begin their careers in an insurance company. 2-3 years of practicing in assessing the various risks of customers, you can try your hand at risk management. And many risk managers in investment and commercial banks began their careers as credit analysts.

The main problem of this profession is her youth. In many business sectors there is generally no clear understanding of what risk management is all about. Therefore, to evaluate the professionalism of a candidate for the position of a risk manager is very difficult: everything will be visible only in the process of work. And the hiring of a risk manager himselfin itself is a risk: there is no guarantee that this person can be relied upon. Therefore, usually one of the requirements for a risk manager is the experience in related areas, which we have already mentioned: risk assessment of corporate clients (2 years or more) or work as a credit analyst for corporate clients (3 years or more).

The risk manager is quite a promising profession, despite her youth. Just become a risk manager is not easy, because this profession involves not only extensive knowledge, but also a significant responsibility.