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Home > Blogs > Road to being a Successful Risk Manager
Risk is an inherent characteristic of human activities. Organisations are not out of the risk purview. Unexpected COVID-19 pandemic outbreak boldened the risks, that bolster the role of risk managers.
Investopedia defines risk management as a process of assessing, managing and mitigating losses. These risks, could stem from a wide variety of sources, including financial uncertainty, legal liabilities, strategic management errors, accidents and natural disasters, explains TechTarget. Simply put, a risk manager’s role is detecting, identifying and resolving a potential threat or risk (internal/external).
According to a report by Allied Market Research, the global risk management market size was valued at $6,258.40 million in 2018, and market forecast is projected to reach $18,504.22 million by 2026, growing at a CAGR of 14.6% from 2019 to 2026. Hence, the demand for risk managers is going to be manifold.
Becoming a risk manager
First thing first, as a risk manager you are expected to deal with various functions in the company as the risk may vary time-to-time. Hence, the companies look for different technical and non-technical traits among the risk managers.
On the front of eligibility, a risk manager should complete at least a bachelor’s degree in risk management, finance, statistics, computer applications and related subjects. A certificate provided by various institutions and agencies such as RIMS-Certified Risk Management Professional, Certified Fraud Examiner (CFE), Certified Risk Analyst (CRA), Certification in Risk Management Assurance (CRMA), Financial Risk Manager (FRM), Professional Risk Manager (PRM) and/or Certified in Risk and Information Systems Control (CRISC) will give you an edge.
Industry experience or internship at a top organisation will be a value addition for your resume.
Job responsibilities vary time-to-time, companies to companies and role-to-role. A host of job roles include risk analyst, risk manager, risk management consultant, risk control supervisor, director of corporate risk management and chief risk officer. Even though general responsibilities are listed below:
- Finding risk areas and implement them in the company to resolve the risks
- Checking and analysing the organisation’s transactions, internal reports and financial information for potential risks
- Keeping reports of significant risks and best practices
- Drafting policies, actions and control measures to address identified risks
- Assessing the readiness of the internal control framework of the organisation in dealing with risks
- Training support workforce on risk management strategies and programs
To perform these responsibilities, you need to have competencies ranging from risk assessment, internal control, corporate governance, IT security and soft skills such as communication, problem solving, leadership, interpersonal, organisational and many other transactional skills.
Salary and career growth
According to Compensation Guide for Anti-Fraud Professionals, the salary of risk managers who holds CFE is 95000-135000 USD while for non-CFE it is 72000 to 115000 USD. In India, the salary of a freshly graduated risk manager is 5-7 lakhs per annum and experienced professionals can earn anything between 13-17 lakhs per year. As per indeed.com, the average salary is 9,45,778.
Since it is a hot job, the career prospects are high for risk management professionals. They can step up the career ladder in a few years and earn a lucrative payout.
The demand for risk managers has seen a momentum after the COVID-19 outbreak as many organisations grappled under serious financial and organisational risks to run their operations by complying the health safety guidelines. However, skilled risk managers are less to fill the demand.
Manipal-RIMS Certified Risk Management Professional (CRMP) Prep course offers intensive training for working professionals and freshers to excel in the risk management profession.
The next batch commences January 2021. Enrol now!