How to Start a Risk Management Career

Are you among those who have considered starting a career in risk management? Join them now and read our article on how to actualize your dream. We have also created a video for you to help visualise and follow these tips.

So without much delay, we would like to define who a risk management officer or risk manager is.

A risk management officer or specialist is someone who interprets factors that are likely to affect the growth and progress of an organisation.

They identify or analyse potential risks and propose solutions to the company to maximise profit and reduce the negative impact on the organisation.

Risk Managers are an integral part of any organization; they assess upcoming risks and strategize how to manage those risks.

Risks can be divided into four categories: market risks, operational risks, credit risks and reputational risks.

The basic formula applied by managers is

Risk = Threat x Probability x Criticality or

Risk = Threat x Vulnerability x Consequence

This job role is not limited to a particular sector or industry. As a risk management specialist, you can work in finance, technology, security, health and so on, in any organisation where there is a threat or uncertainty.

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What Are the Skills of a Risk Manager?

In this section, we look over the top 10 skills of a risk management specialist. These skills mentioned here will come in handy during any job search in this field.

To be a risk manager, you should have

1. Analytical Skills

2. Interpersonal Skills

3. Professionalism

4. Negotiation

5. Detail oriented

6. Problem solving

7. Decision making

8. Communication

9. Adaptability

10. Innovative and critical thinking

The must-have technical skills include

1. Data Analysis

2. Risk modelling

3. Risk Management Software

Recommended: Risk Manager CV Sample

What Are The Certifications/Qualifications Of A Risk Manager?

This is a list of necessary qualifications for a risk management specialist, although requirements for this job role are specific.

Let us look at the top 5 certifications of a Risk Management Specialist in no particular order.

1. Certified Risk Manager (CRM)

2. Certified in Risk Management Assurance (CRMA)

3. Professional Risk Manager (PRM)

4. Chartered Enterprise Risk Analyst (CERA)

5. ISO 31000 Risk Management Certification

What Are The Duties Of A Risk Management Specialist?

The job description of a risk manager is industry-specific. For example, the role of a risk manager in the health sector will be slightly different from the one in the finance industry, the same goes for others.

Despite being industry-specific, they all have some things in common. So their general duties include:

1. Review significant contracts and proposals

2. Identify and assess potential risks

3. Interpret risk policies and strategies for the organisation or company

4. Training other employees on imminent risks and how to control them

5. Designing and implementing a standard risk management process for the organization

How To Start A Risk Management Career:

In addition to the skills mentioned above and certifications, to have a thriving career in this role, here are things you should do

1. Acquire a bachelor’s degree

2. Gain practical experience

3. Build a professional network

4. Compile a befitting portfolio

5. Stay up-to-date on professional practices and trends.

Conclusion

In summary, risk managers assess and quantify risk exposure for companies and organizations. To start a career as a risk manager, you do not necessarily need a certificate; however, having a certificate will be an added advantage over your competitors. Our article has highlighted the skills, responsibilities, certification and how to start a career in risk management. Along with this article is a video made just to walk you through the practical steps of becoming an outstanding risk manager.