A position in risk management is intellectually stimulating. After the market downturn of 2008 risk management has gained prominence in terms of growth as well as financial reward. Career path begins as a risk analyst and can take various routes depending upon the industry type and exposure. Some of the domains that offer risk manager’s positions are insurance companies, banks, asset management companies and corporate finance.
If you wish to work in a risk management role then it is best to take up the certificate program offered by www.garp.org. Although not compulsory, the program offers you an exposure to world-wide community of risk professionals. With the number of MBA graduates increasing every year completion of this program makes you stand apart from the crowd especially if you are a beginner.
Most of the risk management jobs require an Engineering or an MBA degree. Inclination towards number crunching is essential. Depending upon the role, client interaction would also be the part of the job. Firms always look out for candidates with a blend of computational and presentation skills. Like any other challenging job, risk management job requires prioritizing tasks, think on feet and make logical decisions. Risk analyst’s role is dynamic and the need to adapt to changes is integral part of the job.
Apart from a degree and a certified course you have to be good at one of the statistical tools like R, strata, matlab etc with MS Excel being a bare minimum requirement. Knowledge of statistical concepts is presumed since most of your day would be spent in calculating Value at risk, empirical shortfall of the portfolio. Working on various risk models concurrently is implicit. You would be in a challenging role and your ability to multitask is put to test.
A nice post has been written about a day in the life of a market risk has been written in the website https://www.quantnet.com/threads/a-day-in-the-life-of-a-market-risk-analyst.10592/. Though it is not necessary that your lifestyle would be similar, it should give you a fair idea about the role. Jobs in this industry vary from beginner’s level to the vice president’s position. In India, a risk manager earns an average salary of Rs 988,234 per year. As said before roles begin as a risk analyst and can take various paths. Some of the job titles are financial risk analyst, credit risk analyst, associate vice president and strategic account manager. This list is not exhaustive and job roles could be found on different portals.
To summarize jobs in risk management are lucrative and financially rewarding requiring you to have passion towards number crunching and appetite for challenges. Familiarity with any statistical tool pushes your envelope.
For risk management professionals seeking career in Banking industry, BTRM (Bank Treasury Risk Management) is a six-month part-time course designed to empower individuals working in, or intending to work in, every aspect of bank risk management and asset-liability management (ALM). BTRM delivers learning of practical value, developed and taught by highly experienced practitioners.