A risk analyst is an expert who can analyse possible risks and challenges that a business might face in its operations. In the financial world, risk is something that might negatively impact your business growth.
These professionals have expertise in deeply analysing various parameters and factors in a business and provide a detailed analysis report to help businesses adjust their plans accordingly. In this article, we will uncover a detailed report on the risk analyst career position.
Who is a Risk Analyst?
A risk analyst is a professional expert who thoroughly oversees all the possible risks of a business and prepares a feedback report to help businesses make informative decisions for continuous growth. Risk analysts prepare thorough insights to handle events like operational risks, natural disasters, financial risks, interest rate risks, etc.
Businesses nowadays hire these professionals aimed at reducing the likelihood of negative effects from unforeseen and unpredicted events in a business.
Risk Analyst: Key Takeaways
- A financial risk analyst oversees financial threats in a business and prepares a detailed report to help businesses make informative decisions.
- In finance, risk analysts are employed in investment, and insurance companies to manage large sums of money and prevent financial losses.
- Interpret risk-related data, and effects of insights found in the process, compile reports, and present them to identify the best possible method of mitigating these risk factors.
Why is Risk Analysis Important in Today’s Businesses?
In the digital world, the majority of businesses are building their presence online. It is high time that even small businesses must take risk analysis as a major step in their development strategy.
“There is a lot we still need to know and there are a lot of things that someone else knows that might pose a threat to our business.”
The Internet is itself a huge world in itself and to make our business secure on this global platform, there are many factors we still need to consider to be able to achieve our business goals. Many cases of online phishing, hacker attacks, unauthorized access, denial of service, and more are possible if we do not take risk management seriously.
While we are growing our business on a digital platform, we must focus on managing risks in the financial world to stay on a productive path and mitigate losses. There are experts who can handle various risk factors and can prepare a detailed report on potential threats. Let us know how to become one in this article.
Also, check How to measure financial performance of a business?
Qualifications Required for Risk Analyst Job
To start a career as a risk analyst you must have certain skills and qualifications to get a good opportunity at this role. Let us know more about the qualifications and eligibility criteria for a Risk analyst job.
Qualifications for the Risk Analyst Role
- Completed Bachelor’s degree program from a reputed institution with at least 50% aggregate marks overall.
- Preference to students with bachelor’s degrees in Bachelor of Commerce (BCom), Bachelor of Business Administration (BBA), and more related degrees.
- Choose a specialization course in finance, banking, insurance, risk management, or economics.
- Certifications can help risk analysts climb up the ladder in the corporate world.
- Many top companies like Amazon, Deloitte, and Wipro demand work experience in the range of 0 to 7 years for the role of risk analyst in finance.
Skills Required for Risk Analyst Role
A Risk analyst must have certain skills to handle the work pressure and prepare a detailed overview of the steps that might be necessary to help businesses mitigate threats to their path of growth.
- Risk analysts must have strong analytical skill which allows them to evaluate the current financial health of a business. Working on real world projects and internships can help you build this skill.
- A risk management job is full of unforeseen threats and losses, which requires sound problem solving skills. Risk analysts must be proficient enough to quickly analyse a case and provide a detailed report in order for higher customer satisfaction.
- They must be familiar with the basics of finance, investment, and more. Knowledge of industries such as Finance, retail, insurance or more can help them produce an informative report and carry out a proper analysis of the competitors.
- Must have good communication and presentation skills
- Also, can work closely with other teams in the organisation to contribute positively in the organization’s success.
Also, Check the Top Financial Skills Recruiters Prefer in 2024
Is Risk Analyst Role a Good Career Option for Freshers?
Freshers or young graduates can get wide exposure, especially working in the BFSI industry. Many freshers start by working at a junior risk analyst position after completing their graduation. They get industry exposure and learn from the senior analyst.
With several years of experience, junior risk analysts get promoted to senior level positions. In bigger firms, senior analysts oversee a team of experts handling risk analysis for many sectors, regions, or industries. With good performance and breakthrough seniors can also get promoted to financial management positions in organisations managing finance and account related tasks.
Best Tools to Master for Risk Analyst
Risk analysis is a challenging position in the finance industry which requires experts to be well aware of the analysis tools and frameworks that might help them boost their productivity and produce faster results. Some of the major tools and frameworks that might be helpful in your career as a risk analyst are mentioned below.
- Excel
- Python
- R
- SAS
- Decision Trees
- Risk matrices
- Sensitivity analysis
- Monte Carlo Simulation
These are some of the basics and most important tools for your career as a risk analyst. However, some of the major risk analysis tools that you might require to master at every step of the way.
- Risk data quality assessment
- Impact Matrix
- Risk Data quality assessment
- Risk identification
- SWOT analysis
- Root Cause Analysis
- Risk acceptance
- Risk Reassessment
- Risk monitoring
- Delphi techniques
Risk Analyst Job Descriptions
The major role of risk analyst professionals is to minimise overall risk factors across various categories in finance and reduce negative impacts on the company’s growth. A risk analyst’s job role is full of challenges and unforeseen experiences. However there are certain job responsibilities for risk analyst positions, check them below.
- Collect financial report data and monitor it thoroughly.
- Manipulating and interpreting risk related data using the insights available through Risk analysis softwares.
- Review legal documents from various sources.
- Develop Quality Control Measures to mitigate risk causing factors.
- Develop threat measuring metrics to mark the level of losses and frame precautionary measures accordingly.
- Conduct a detailed analysis of various risk factors and methods to mitigate the increased risks.
- Compile reports, presentations, and summaries related to the finance and accounting of a business.
Risk Analyst Salary in India
Many top companies hire for risk analyst roles in India, such as Amazon, Ernst & Young, HDB Financial Services, Wipro, Deloitte, etc. The average salary for a risk analyst role in India is 7 Lakhs per annum.
For a junior analyst role, a risk analyst may get job offers with packages in the range of 3 to 7 Lakh per annum. However, with experience, the range may rise to 3 to 18 Lakh per annum. Some of the top paying industries for the role of Risk analysts in India are
- Banking
- Management consulting
- Financial Services
- IT Services
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Risk Analyst FAQs
Q1. Who is a risk analyst?
Ans: A risk analyst is a professional who mitigates various risk factors in business. They evaluate various techniques to mitigate risks associated with businesses and help organisations make informative decisions.
Q2. Can a fresher get a role as a risk analyst?
Ans: Freshers can get opportunities as junior risk analysts in various finance industries.
Q3. What are the eligibility criteria for a risk analyst role?
Ans: Candidates must have a bachelor degree and over 6 years of experience to get a risk analyst role in finance.
Q4. Is a risk analyst an IT Job?
Ans: Risk analyst is a job where financial experts undertake in-depth analysis of finance data to help organisations in their success. They find various risks in organisation and take measures to mitigate risks.
