How to Become a Risk Analyst: Career Path Guide

If you want to become a risk analyst, you first need to determine if this career path is a good fit
for your skills, interests and personality traits. If the following description sounds like you, then
youre probably well suited for a career as a risk analyst:
You enjoy reviewing financial and accounting documents, industry developments and related
resources
You have an interest in risk mitigation and coverage
You enjoy analyzing research data
You have mathematical, analytical and business communication skills
You are interested in a lucrative career
You enjoy working in a corporate environment
Below we've outlined what you'll need to begin a career as a risk analyst. We've also included
helpful information for this career, such as job description, job duties, salary expectations, a list
of possible employers and much more!

Education Needed to Become a Risk Analyst

Undergraduate Degree: Although the educational requirements for becoming a risk analyst vary

by employer, you typically need an undergraduate degree in a field such as finance, economics,
computer science, mathematics, statistics, or any other field that demonstrates your ability to
understand and work with numbers and financial information.
Regardless of the degree you pursue, you should consider taking courses in risk management (if
they are available), as they are very helpful for a career as a risk analyst. A degree in an industryrelated program, may also be considered an asset. For example, a degree in geology or petroleum
engineering is considered an asset for risk analysts working in the oil and gas industry.
Graduate Degree: A graduate degree, such as an M.Sc. in risk management or financial markets,

can also significantly improve your employment prospects, as organizations that employ risk
analysts tend to prefer candidates with graduate degrees. A graduate degree is particularly helpful
for candidates with an undergraduate degree that isnt directly related to risk management.
Getting an entry-level job in risk analysis, such as Risk Analysis Technician, may be possible
without a degree, although experience in finance or insurance is usually required, along with an
assortment of professional qualifications.

Risk Analyst Job Description

Risk analysts are responsible for identifying and analyzing areas of potential risk that threaten
the assets base, earning capacity, and general financial success of the private or public sector

organizations that employ them or contract their services. They must then develop and present
risk mitigation and coverage recommendations based on their analysis.
These recommendations they present may include strategies for minimizing risks and
maximizing rewards, and making sure that their employers operations comply with financial
regulations and other statutory requirements.
There are many operational sectors in which risk analysts may work; they may work in sales,
origination, trading, marketing, financial services or private banking. Risk analysts may also
specialize in one of the four major risk categories:
Credit risk specialists: Analyze the risk to the company of its customers not paying for goods or

services, or defaulting on loans and credit.

Market risk specialists: Analyze the potential negative impact that outside factors could have on

the companys share price, or the market in general. May also make recommendations to limit
company's investment portfolio risk through diversification, currency exchanges and other
investment strategies.
Operational risk specialists: Analyze the likelihood and potential impact of risky operational

events, such as system failures, employee fraud.

Regulatory risk specialists: Analyze the potential impact that newly introduced, or forthcoming

legislation will have on the organization.

Risk Analyst Job Duties

The job duties of a risk analyst can vary on their area of specialty, the specific responsibilities of
their job, and many other factors. In general however, risk analysts are responsible for
performing the following duties:
Review financial and accounting documents, industry developments and other resources
Research current events, and anticipate their possible effect on the economy and the financial
services industry
Study government legislation and advise company on compliance
Work with traders to analyze the risk associated with specific transactions
Use quantitative analysis, statistical models and valuation tools and techniques
Develop contingency plans to deal with emergencies
Monitor and forecast market trends
Present ideas via reports and presentations, and make recommendations for improvements
based on findings
Use of statistical software and other related computer applications
Make recommendations to reduce or control risk, which may involve the development of an
insurance strategy

Who Creates Jobs for Risk Analysts?

Risk analysts are typically hired on a full-time or contractual basis by a wide variety of
organizations. Competition for risk analyst jobs is keen, no matter who the employer is, so
ensure you acquire the proper skill set that employers are looking for.
Organizations that employ Risk Analysts include:

Insurance firms
Financial services firms
Mortgage firms
Commercial and investment banks
Risk management consulting companies
Large private and publicly traded companies in a variety of industries
Federal, provincial/state and municipal government departments

Experience Needed to Become a Risk Analyst

The experience requirements for becoming a risk analyst vary by employer. Some
employers may hire you directly out of school into a risk analysis or management
training program, while others will only hire you if you have years of professional
experience in roles of progressive responsibility.
Success Tip: Gaining real-world experience through internships will give you a

competitive advantage if you want to become a risk analyst. In fact, many employers
offer full-time jobs to competent interns once they have graduated from their program.

Skills Needed to Become a Risk Analyst

In order to become effective in a career as a risk analyst, you need to posses a certain
set of skills. Employers of risk analysts typically seek candidates with analytical and
mathematical skills and abilities, as well as general business skills. You will likely need
to see evidence of them on your resume when applying for risk analyst jobs.
Familiarity with quantitative analysis techniques
Strong knowledge of industry employer operates within
Proficient in analyzing financial statements
Able to work under firm deadlines
Able to prioritize and balance workload
Computer literacy; proficient in MS Office applications (Excel, Word, Outlook,
PowerPoint)
The ability to present complex concepts to a wide audience
Project management skills
A proven ability to identify opportunities to improve performance and reduce
inefficiencies in existing systems

Characteristics Needed to Become a Risk Analyst

In order to enjoy performing the duties of a risk analyst, you need to have certain
personality traits. Taking enjoyment from your duties as a risk analyst is important, as it
helps you maintain a positive attitude towards your work, which usually leads to having
a long and successful career.
A keen interest in mathematics and data analysis
Enjoy developing strategies to mitigate risk
Enjoy consulting with others and presenting recommendations
Enjoy reviewing financial and accounting documents, industry developments and
related resources
Enjoy synthesizing information and taking a methodical approach to work activities
High ethical standards