How to Become a Risk Manager?

Finished with a Bachelor’s degree in Commerce? Are you a struggling fresher puzzled what to do next? After graduating with a commerce degree there is an array of options available to specialize into. Human Resources, Marketing, Accountancy, Banking and Finance are popular ones. Apart from these, the booming viable career option of a Risk Manager is currently high in trend. Wondering how to become one? You need to skillfully plan and structure your goals to have the nameplate of a Risk Manager. To ease the process for you here is a comprehensive blog on how to become a Risk Manager!

What is the Meaning of Risk Management?

In simplified words, Risk management is a process performed for an organization wherein it suffers nil or minimal losses and gains maximum profits through its transactions. In an uncertain world of business, every organization is looking to minimize risk. Therefore, a Risk manager is a person who works for an organization focusing on Event risks and also now the newly added areas of study i.e. Operational risks. 

Duties of a Risk Manager

• Identifies risks
• Evaluates risks
• Selects the best techniques for treating identified risks
• Implements the apt risk management technique
• Regularly evaluates and monitors the program

The Risk Manager is also involved in planning, organizing, leading, and controlling activities in a business that deals with varied types of risks. 

Education Qualification

A field, as serious as this requires appropriate education and training.  The minimum requirement for becoming a risk manager is graduation but depending on the job profile you might also be required to have a postgraduate degree. There is a wide variety of courses in risk management at different levels. However, graduates from any stream are eligible to apply for a position of risk manager but it is advisable to have a relevant degree to the job profile.

Level	Courses
Undergraduate	BBA in Risk Management B. Com in Risk Management PGD in Risk Management MBA in Risk Management
Postgraduate	PGD in Insurance Risk Management International PGD in Risk Management
Diploma Courses	Certified Risk and Internal Control Professional- AICP Certificate in Operational Risk Management Certificate courses by Institute of Risk Management

Eligibility Criteria

If you have passed 12th grade, you can pick up a Diploma in Risk Management from any good institute. And if you have completed your graduation in commerce, i.e. B.Com then you can go for an MBA specialized in Risk Management. The following are the requirements:

• Bachelor’s degree or equivalent in the relevant field.
• A valid GMAT or GRE score. 
• A valid score in language proficiency tests like TOEFL, IELTS, or PTE.
• Minimum work experience of 2-5 years. 

Must Read: Career in Financial Management

What Do You Need to Study to Become a Successful Risk Manager?

A course that constitutes of the following broad subjects shall entitle you to leverage yourself as a Risk Manager:

• Corporate finance – It is a division of finance that deals with corporations dealing with capital sourcing, investment decisions, and funding sources.
• Marketing and business environment – It refers to factors or forces that determine the firm’s process to build and maintain customer relationships.
• Corporate risk management – It delves into all the methods a company uses to minimize their losses and add up their gains.
• Financial analysis and investments – It is a process of evaluating businesses, projects, budgets, and other financial transactions. 
• Strategic management and leadership – It relates to a manager’s position to express a strategic vision for an organization in terms of its financial state. 
• Business ethics – It’s a study of appropriate business policies and morals that need to be understood while working for an organization. 

Business Schools Offering Risk Management Courses

Given below are some top universities that offer Risk Management – 

• University of Oxford
• London Business School
• University of Cambridge
• London School of Economics and Political Science
• Imperial College London
• University of Warwick
• University College London
• University of Bristol
• University of Bath
• Lancaster University
• City University London
• Durham University
• University of St Andrews
• University of Leeds
• The University of Edinburgh
• Coventry University
• Cardiff University
• University of Strathclyde
• University of Birmingham
• Loughborough University
• The University of Manchester

Top Indian Universities

• Indian Institute of Management
• Indian School of Business
• Faculty of Management Studies
• National Institute of Securities Markets

Also Read: Scope of Financial Management

Career Scope

The financial sector is growing with leaps and bounds and hence the dire need for risk management arises. The reach of this position has a long trail, wherein one can pick and choose the right role for themselves. Some of the roles are listed below – 

• Risk Manager
• Risk Surveyor
• Risk Management Advisor
• Risk Analyst
• Performance and Risk Manager
• Financial Risk Manager
• Digital Risk Manager
• Supply Chain Risk Manager

Employment Sectors for a Risk Manager

• Financial Institutions
• Manufacturing Companies
• Cyber Security Firms
• Risk Management Consultancy Firms

How to Get a Job in Risk Management?

FAQ’s

What does a Risk Manager do?

A risk manager is a person who assesses the current and possible future risks that can affect company profitability. 

After reviewing third-party contracts and proposals, the risk manager will advise management of the potential risks. He or she will then train staff in risk awareness/avoidance. 

How do you become a Risk Manager?

The risk manager creates and presents a risk-management budget as well as manages insurance policies and claims. The risk manager must have excellent interpersonal skills since he or she interacts with a variety of people. This position requires strong analytical skills since the risk manager must be able to analyze data and recognize patterns. You can become a risk manager by taking up subjects like corporate finance and more.

Learn more about risk management from here

What does a Risk Manager get paid?

The average salary for a risk manager is $82,213 per year(61,02 481 INR) 

The demand for Risk Managers is high, especially after the pandemic and everyone has started realizing the need for a good risk management system. So, if you believe that you possess the necessary skills then this is the right time to dive into this field. Connect with our experts at LeverageEdu and get mentored by the best in the field to get you admission to your dream university in the course of your choice. Sign up for a free session with us now!