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Posted On: January 8, 2018 by Henry R. Steele

The following article discusses the career path of Risk Analyst. Learn about how to become one, education requirements, job duties, traits and qualities, national salary outlook as well as top national employers of Risk Analysts.

Job Duties

Risk analysts usually work for insurance companies or banks. They are responsible for looking over the applications of new clients, requesting for supporting and missing data and information, and liaising with other agencies to collect even more data. This includes credit bureaus. They also verify that any information submitted is correct. It is very important that risk analysts understand merchants’ and corporate financial data, as well as personal credit reports, as these are used to determine risk. They must also ensure they have good professional relations with company staff and processors. Ultimately, they advise on whether or not the risk associated with a prospective client is acceptable or not.

Other job duties of a risk analyst include:

  • Reviewing all available data to determine risk and possible outcomes
  • Transforming and aggregating data from a range of different sources in order to create consistent results
  • Developing quality control measures, including strategies to properly audit data.
  • Creating summaries and reports, as well as processes, policies, and procedures for documentation.

Where We Work

According to the U.S. Bureau of Labor Statistics, there were 296,100 financial analysts in 2016, of which risk analysts form part. The largest employers of these professionals were:

  • Securities, commodity contracts, and other financial investments and related activities: 24%
  • Professional, scientific, and technical services: 14%
  • Credit intermediation and related activities: 13%
  • Management of companies and enterprises: 12%
  • Insurance carriers and related activities: 7%

How to Become

A risk analyst is expected to hold a bachelor’s degree in finance or related field, such as business, as a minimum. However, many also complete further education. Furthermore, work experience and proven success is of key importance.

Education Requirements

A bachelor’s degree is generally the minimum requirement. While a bachelor’s in finance is recommended, fields such as mathematics, statistics, economics, and accounting are also suitable. Licenses and certifications are also available and sometimes required by employers.

The main licensing body for the securities industry is the Financial Industry Regulatory Authority (FINRA). If they wish to sell financial products, they will need to be licensed. To receive this license, employer sponsorship is required. This means that risks analysts are not expected to be already licensed when they start a job.

Certification is usually recommended depending on the position. The Chartered Financial Analyst (CFA), offered by the CFA Institute, is very popular. To obtain CFA certification, a risk analyst must hold a bachelor’s degree, have four years of relevant professional experience, and pass three different examinations. They can also obtain further certification in specialty fields. Doing so will also greatly improve their advancement prospects.

Traits & Qualities

The most effective risk analysts have the following traits to some degree or other:

  • Excellent analytical skills
  • Great communication skills, both verbal and written, particularly in relation to report writing and holding presentations
  • Computer skills, focusing also on financial analysis software
  • Strong decision making skills
  • Detail oriented
  • Excellent mathematical skills

Minimum Education

Bachelor’s Degree

National Salary

The national average salary estimate for Risk Analyst was $84,024. This number is estimated from over 577,024 employees, users past and present job advertisements from Indeed.com. This equates to an hourly salary of $43.76 and monthly of $7,002.

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$20,000

$190,000

Salary Distribution

Salary by State

The following section lists Risk Analyst salaries in each state around the country. The figures are based on the total number of job postings through Indeed.com. For example, Arkansas had the largest quoted salary of $104,189 while Idaho had the smallest quoted salary of $33,158.

Alabama Idaho Nevada
Arkansas Illinois New York
Arizona Massachusetts Ohio
California Maryland Oklahoma
Colorado Michigan Oregon
Connecticut Minnesota Pennsylvania
DC Missouri South Carolina
Delaware Mississippi Tennessee
Florida North Carolina Texas
Georgia Nebraska Utah
Iowa New Jersey Virginia
Alabama$95,029 Rank: 6th
The average salary ranks 6th among states in the country. There were also job openings from employers like Selby Jennings.

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$24,000

$211,000

Salary Distribution
Arkansas$104,189 Rank: 1st
The average salary ranks 1st among states in the country. There were also job openings from employers like Walmart and Accounting Career Network.

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$47,000

$183,000

Salary Distribution
Arizona$60,716 Rank: 29th
The average salary ranks 29th among states in the country. There were also job openings from employers like Spyglass Group Executive Search, Robert Half Finance & Accounting, JPMorgan Chase, and Collabera.

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$20,000

$122,000

Salary Distribution
California$86,111 Rank: 9th
The average salary ranks 9th among states in the country. There were also job openings from employers like MUFG Union Bank, Municipal Pooling Authority, Western Asset Management, and Facebook.

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$30,000

$170,000

Salary Distribution
Colorado$57,620 Rank: 30th
The average salary ranks 30th among states in the country. There were also job openings from employers like Analytic Recruiting, Request Technology, Denver Public Schools, and Credit Union of Colorado.

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$14,000

$154,000

Salary Distribution
Connecticut$77,780 Rank: 14th
The average salary ranks 14th among states in the country. There were also job openings from employers like Robert Half Finance & Accounting, UBS, and Randstad.

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$21,000

$169,000

Salary Distribution
DC$96,754 Rank: 4th
The average salary ranks 4th among states in the country. There were also job openings from employers like Green Key Resources, Selby Jennings, All-In Analytics, and Abs Consulting.

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$36,000

$185,000

Salary Distribution
Delaware$77,876 Rank: 13th
The average salary ranks 13th among states in the country. There were also job openings from employers like Barclays and JPMorgan Chase.

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$27,000

$153,000

Salary Distribution
Florida$51,012 Rank: 32nd
The average salary ranks 32nd among states in the country. There were also job openings from employers like SherlockTech Staffing, Confidential – payment processor, WG Financing, and Xoriant Solutions Pvt Ltd.

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$14,000

$113,000

Salary Distribution
Georgia$64,376 Rank: 28th
The average salary ranks 28th among states in the country. There were also job openings from employers like Principle Solutions Group, Randstad, The Bolton Group, and Synergy Solutions.

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$20,000

$133,000

Salary Distribution
Iowa$78,055 Rank: 12th
The average salary ranks 12th among states in the country. There were also job openings from employers like Selby Jennings and Transamerica Life Insurance Company.

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$28,000

$152,000

Salary Distribution
Idaho$33,158 Rank: 33rd
The average salary ranks 33rd among states in the country. There were also job openings from employers like University of Idaho.

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$8.65

$26.05

Salary Distribution
Illinois$86,686 Rank: 8th
The average salary ranks 8th among states in the country. There were also job openings from employers like Huxley Banking & Financial Services, Smith Hanley Associates, LLC, Request Technology, and Capgemini.

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$28,000

$176,000

Salary Distribution
Massachusetts$96,495 Rank: 5th
The average salary ranks 5th among states in the country. There were also job openings from employers like Robert Half Technology, State Street, Robert Half Finance & Accounting, and Santander.

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$36,000

$185,000

Salary Distribution
Maryland$76,285 Rank: 16th
The average salary ranks 16th among states in the country. There were also job openings from employers like Bill Me Later, Inc., AEGON USA Realty Advisors, LLC, Transamerica Life Insurance Company, and Non Profit Healthcare Company.

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$20,000

$167,000

Salary Distribution
Michigan$101,446 Rank: 3rd
The average salary ranks 3rd among states in the country. There were also job openings from employers like Gilbert Consulting Services Inc. and Selby Jennings.

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$31,000

$212,000

Salary Distribution
Minnesota$84,779 Rank: 10th
The average salary ranks 10th among states in the country. There were also job openings from employers like Robert Half Finance & Accounting, Request Technology, CyberCoders, and U.S. Bank.

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$32,000

$163,000

Salary Distribution
Missouri$71,168 Rank: 21st
The average salary ranks 21st among states in the country. There were also job openings from employers like Department of Homeland Security, Robert Half Finance & Accounting, Mountain, Ltd, and Selby Jennings.

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$25,000

$141,000

Salary Distribution
Mississippi$67,501 Rank: 25th
The average salary ranks 25th among states in the country. There were also job openings from employers like Robert Half Finance & Accounting and The Lewis Group.

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$14,000

$162,000

Salary Distribution
North Carolina$72,480 Rank: 19th
The average salary ranks 19th among states in the country. There were also job openings from employers like Bank Of America, HireNetworks, VF Corporation, and Robert Half Finance & Accounting.

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$9.05

$86.20

Salary Distribution
Nebraska$74,053 Rank: 18th
The average salary ranks 18th among states in the country. There were also job openings from employers like Farm Credit Services of America, ACA.

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$20,000

$162,000

Salary Distribution
New Jersey$82,695 Rank: 11th
The average salary ranks 11th among states in the country. There were also job openings from employers like Intermedia Group, Inc., PHH Mortgage, Experis, and Modis.

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$25,000

$172,000

Salary Distribution
Nevada$67,639 Rank: 24th
The average salary ranks 24th among states in the country. There were also job openings from employers like Analytic Recruiting.

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$33,000

$114,000

Salary Distribution
New York$102,192 Rank: 2nd
The average salary ranks 2nd among states in the country. There were also job openings from employers like Experis, Employment Staffing, Robert Walters Associates Inc, and EPatriotcrm Inc.

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$26,000

$228,000

Salary Distribution
Ohio$69,052 Rank: 23rd
The average salary ranks 23rd among states in the country. There were also job openings from employers like Robert Half Finance & Accounting, Maganti IT Resources LLC, Federal Home Loan Bank of Cincinnati, and Accounting Career Network.

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$14,000

$165,000

Salary Distribution
Oklahoma$54,029 Rank: 31st
The average salary ranks 31st among states in the country. There were also job openings from employers like Inceed.

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$27,000

$83,000

Salary Distribution
Oregon$64,420 Rank: 27th
The average salary ranks 27th among states in the country. There were also job openings from employers like Federal Government Jobs.

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$22,000

$129,000

Salary Distribution
Pennsylvania$77,256 Rank: 15th
The average salary ranks 15th among states in the country. There were also job openings from employers like PORTER & CURTIS, LLC, American Cybersystems, Inc. (ACS Group), Robert Half Management Resources, and Resources for Human Development, Inc..

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$19,000

$175,000

Salary Distribution
South Carolina$64,986 Rank: 26th
The average salary ranks 26th among states in the country. There were also job openings from employers like SC Career Search and American Credit Acceptance.

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$16,000

$146,000

Salary Distribution
Tennessee$71,420 Rank: 20th
The average salary ranks 20th among states in the country. There were also job openings from employers like Selby Jennings, Robert Half Finance & Accounting, and Frink-Hamlett Legal Solutions.

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$17,000

$163,000

Salary Distribution
Texas$69,731 Rank: 22nd
The average salary ranks 22nd among states in the country. There were also job openings from employers like Selby Jennings, Robert Half Finance & Accounting, Staff Perm LLC, and Staff Perm.

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$16,000

$160,000

Salary Distribution
Utah$74,952 Rank: 17th
The average salary ranks 17th among states in the country. There were also job openings from employers like CyberCoders, Access Staffing LLC, and Goldman Sachs.

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$31,000

$137,000

Salary Distribution
Virginia$87,605 Rank: 7th
The average salary ranks 7th among states in the country. There were also job openings from employers like Request Technology, Green Key Resources, National Associates, Inc, and Abs Consulting.

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$25,000

$187,000

Salary Distribution

Top 20 National Employers

According to Indeed.com, the following states had employers looking to hire a Risk Analyst. The quoted salary figure represents the average salary from all job postings by this employer.

Employer Name Location Average Salary

Learn More

Related Careers

Career Name Average Salary
Henry R. Steele
Henry R. Steele
Managing Editor
Henry is Managing Editor of BusinessStudent.com. He is a seasoned business professional who regularly consults with local business's throughout Southern California. Henry pursued his undergrad in Business and Economics at the University of San Diego and gained valuable life changing experience through a unique internship upon graduation.Follow on Twitter.com

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