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.
Risk Analyst 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 Risk Analysts 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
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.
Risk Analyst 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.
Risk Analyst 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 Risk Analyst Education
National Risk Analyst 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.
- Most Reported
Risk Analyst 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.
Top 20 National Risk Analyst 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|
|Employment Staffing||New York||$250,000|
|Robert Walters Associates Inc||New York||$160,479|
|Brown Brothers Harriman||Massachusetts||$150,616|
|EPatriotcrm Inc||New York||$150,000|
|Palm Mason||New York||$129,933|
|The Lewis Group||Mississippi||$125,000|
|Accounting Career Network||New York||$122,573|
|Commodity Futures Trading Commission||Illinois||$120,942|
|Gilbert Consulting Services Inc.||Michigan||$119,585|
|Bill Me Later, Inc.||California||$119,581|
|Smith Hanley Associates, LLC||New Jersey||$115,000|
|Drum Associates||New York||$114,390|
|Huxley Banking & Financial Services||Massachusetts||$113,118|
Risk Analyst Learn More
- Certified Risk Analyst – Wikipedia
- Risk analysis – Wikipedia
- 100+ Best Online Masters Degree Programs
- Salary Outlook with a Risk Management Degree
- Best MBA in Risk Management Degree
- Risk Analyst, Employment | CAIA
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