Risk analyst

Alternative job titles for this role

• Investment or Financial risk manager
• Risk technician
• Risk surveyor
• Credit analyst

Introduction

Financial institutions are required by law to constantly manage market and credit risks. Risk analysts identify and analyse the areas of potential risk threatening the success of organisations such as investment and commercial banks. They are responsible for predicting change and future trends, as well as forecasting costs. There are high degrees of specialisation within the profession. Risk analysts may work in sales, origination, trading, marketing, financial services or private banking, specialising in credit, market, operational and regulatory divisions.

What the job involves

• Analyse and anticipate market trends
• Conduct research to assess risks
• Calculate risks involved in transactions and business proposals
• Use statistical computer programmes
• Formulate contingency plans
• Recommend precautionary or improvement measures

How your career can develop

Specialisation is common for risk analysts. Credit risk specialists are in demand among banks as banking oversight regulations become more and more stringent. Regulatory risk analysts are also much sought after.

Why risk analysis matters

Risk analysts have recently been warning of the knock-on global effect on growing insecurity and decline in the Chinese economy.

Skills

• Excellent maths skills
• IT skills
• Communication skills
• Analytical skills
• Interpersonal skills
• Teamworking skills
• Expertise in finance and the markets
• Ability to communicate ideas via reports and presentations, outlining findings and making recommendations
• Ability to use complex modelling techniques

Typical employers

• Financial houses
• Investment banks
• Exchanges such as Irish Stock Exchange
• Treasury departments of major companies
• Hedge funds
• Treasury departments of large companies

Typical qualifications

Potentially open to all degree disciplines, though employers tend to prefer numerate and business-related subjects. Postgraduate degrees may aid career development