How to Become a Risk Analyst? Part II

Articles From: QuantInsti
Website: QuantInsti

Learn about the Responsibilities/Job Description of a Risk Analyst with Part I in this series.

Educational Background and Essential Traits to Become a Risk Analyst

To become a risk analyst, there are some degrees and courses which should help you with the right set of knowledge.

Entry-level positions typically require:

  • College diploma or
  • Undergraduate university degree

Senior positions may require:

  • Graduate degree
  • PhD/doctoral candidates

Academic Background/Fields:

  • Mathematics
  • Engineering
  • Finance
  • Actuarial Science
  • Risk Management
  • Mathematical Finance
  • Information Systems
  • Statistics
  • Business Administration
  • Mathematical Finance
  • Basic sciences

Employers may prefer candidates to possess one or more of the following certifications:

  • Associate in Risk Management (ARM)
  • Chartered Financial Analyst (CFA®)
  • Financial Risk Manager (FRM®)
  • Professional Risk Manager (PRM™)

After understanding what educational background is required to become a risk analyst, next we will put the focus on what are the essential characteristics that help you become a risk analyst.

The following characteristics/traits are highly appreciated for becoming a risk analyst:

  • Analytical mind and a good hold in mathematics
  • Knowledge of data analysis
  • Strategic mindset for mitigating risk
  • A go-getter attitude
  • Coordination skills to understand the requirements of different departments with regard to risk
  • Highly ethical

Apart from the characteristics of the risk analyst mentioned above, one must make sure that the work is enjoyed thoroughly and with dedication as well as perseverance. Such a determined attitude makes the individual enjoy a long-lasting and successful career.

Risk analysts are usually hired on a full-time basis but can also be hired on a contract basis by some firms. Their role is quite crucial in making sure that the firm maximises its gain by controlling the common risks.

Let us see which are such firms who require risk analyst to work actively and they are:

  • Commercial banks
  • Trading firms
  • Investment banks
  • Financial services institutions
  • Risk management consulting firms
  • Insurance companies

Also, the risk analysts are not restricted to one sector, which implies that they are hired in different companies belonging to both the public and private sector.

Stay tuned for the next installment in which Chainika will discuss the salary of a risk analyst.

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