In a marketplace where most small businesses fail, it’s accurate to say entrepreneurship is a risky adventure.
Right from when you’re developing your product, there’s a risk that it won’t have any market demand. And even if there’s market demand, completion can be too strong.
The good news? Most business risks can be managed.
This is where risk managers come in. They help businesses identify and mitigate various risks.
If you’ve got an analytical mind and excellent problem-solving skills, this could be an ideal career for you. Continue reading to learn how to become a risk manager.
What Does a Risk Manager Do?
You already know risk managers identify and mitigate business risks, but that’s a broad overview of their job. In detail, their day to day roles and responsibilities include:
- Evaluating the processes and systems of an organization to identify risks
- Establishing the dangers the identified risks pose to the organization
- Evaluating the organization’s ability to face and withstand risks
- Designing and implementing effective risk management strategies
- Developing risk management policies for organizations
- Supervising risk analysts and other staffers in the risk management department
- Preparing reports and making presentations
- Holding negotiations with insurance adjusters and other professionals.
Risk managers typically spend their time in an office environment. The job might involve some travel, especially when the managers have to attend industry seminars and events.
This is a regular 9 to 5 job. Don’t expect to work late or during the weekends, unless you have such an arrangement with your employer.
Now that you know the job description of a risk manager, are you still interested in pursuing this career?
If you’re ready for what the job has to offer, here’s what you need to do next.
Get the Right Education
The first step to becoming a risk manager is to go to college and pursue a bachelor’s degree in risk management. This is a specialized course, so not many institutions are offering it.
If you’re unable to enroll in a risk management program, you can also get started with a business, economics or finance degree, as long as it allows students to major in risk management later on.
That said, it’s a specialized degree in risk management that will give you the best preparation for this career.
You’ll take introductory classes in areas such as financial accounting, business law, and principles management. However, the focus will be on subjects such as principles or risk management, business insurance, risk analysis, and risk management strategies.
As part of the program requirements, you will complete an internship during your last year of study. This is an opportunity to gain some real-world experience. Try to find a position in a company with an established risk management department.
Nurture Occupational Skills
Having the right education is a good start, but it isn’t the only thing you need to become a risk manager. You also need to possess the right occupational skills.
For instance, you need excellent analytical skills. The job largely involves digging into lots of information, assessing situations, and evaluating processes. With well-developed analytical skills, you’ll be able to make sense of data.
Strong problem-solving skills are a must-have. It’s the responsibility of a risk manager to find solutions to the various risks an organization faces.
You also need strong attention to detail. You must be able to work through your analysis with thoroughness and accuracy. If you miss a crucial detail, you might not be able to identify all the risks an organization faces.
A risk manager occupies a management role. As such, they’re usually in charge of departments. This means you need excellent leadership and supervisory skills to effectively lead and manage the people who work under you.
Other useful skills include communication, report writing, and organizing.
Secure a Risk Management Certification
With a bachelor’s degree, you’re ready to start looking for employment.
However, because of increasing competition for jobs, employers are usually looking for professionals with more than a bachelor’s degree. They want certified professionals.
Therefore, it’s important to pursue professional certification before entering the job market.
There are lots of risk management certifications, offered by different organizations. You need to choose the one that best suits your interests.
For example, if you want to take the project risk management path, the PMI Risk Management Professional certification would suit you.
If you want to focus on financial risk management, you should go for the Financial Risk Manager (FRM) credential. Get FRM Books and prepare yourself accordingly.
Armed with a degree, the right skills, and professional certification, you’re good to join the practice.
Insurance companies, financial institutions like banks, and risk management consulting firms are the primary employers of risk managers. But you can also find employment in any organization with a risk management department.
However, keep in mind that as a beginner, you might not be hired as a manager right away. You could start out as a risk analyst, from where you’ll work your way up.
After gaining vast experience, you can venture into self-employment and start your own consulting firm.
Now You Know How to Become a Risk Manager!
Risk management is a rewarding career. You have the potential to earn a six-figure salary and the job outlook is strong.
What’s left is for you to start your journey toward this career. With this guide on how to become a risk manager, you now know every step that awaits you.
All the best and keep reading our blog for more tips.