How to become A Risk Management Specialist

Risk is inherent in all fields of life, but being prepared to tackle it can help mitigate and leverage it for gain. Risk Management Specialists are financial experts who help in establishing and protecting businesses.They guide enterprises towards optimal operating efficiency and higher profits by identifying and controlling potential risks and losses and meeting strategic goals. 

• Risk Management Expert
• Risk Managers
• Risk Officers
• Risk Specialist
• Credit Risk Management Specialist
• Global Risk Management Specialist
• Risk and Insurance Specialist
• Financial Risk Management Specialist
• Risk Management Professional
• Financial Manager

What do Risk Management Specialists do?

A Risk Management Specialist would typically need to:

• Develop or select and implement risk assessment models and an overall risk management process to analyse and minimise current and potential risks to an organisation, particularly the financial impact when risks occur
• Collect and organise risk-related data from internal and external resources, including financial data and information about business operations; pinpoint potential risks through data analysis, process observation, and interaction with staff
• Determine the organisation’s risk appetite or the level of risk it is ready to take or accept
• Perform risk assessment; evaluate how a company previously tackled risks; assess current organisational risks; identify, describe and estimate potential risks; compare risks against company criteria such as costs, legalities, and environmental aspects
• Perform audits of policy and compliance to standards; collaborate with internal and external auditors
• Draft and deliver reports that present findings, explain risks and suggest solutions; draft and assess risk disclosures and other relevant documentation
• Adapt risk reports to different audiences by delivering appropriate information that highlights each stakeholder’s role in responding to the relevant risk
• Raise risk awareness amongst staff by providing education and training
• Purchase insurance; implement health & safety measures such as the use of prescribed safety gear; formulate and enact business continuity and contingency plans to limit risks, manage business interruptions, emergencies and volatile market events
• Provide suggestions regarding safe designs and layouts of the workplace; have contingency plans for machinery breakdowns; ensure uninterrupted supplies of raw materials by reviewing vendor contracts 
• Prepare budgets for risk management and insurance; keep records of insurance policies and claims; evaluate new contracts or internal business proposals
• Stay current with existing and developing laws and regulations relevant to the industry; assess and explain their potential impact on organisational risk exposure

Risk Management Specialists typically work in a designated office. Those working in consultancy may occasionally need to visit clients.

Travel may be needed to attend conferences or when working for an internationally operating company. Risk Management Specialists are usually required to visit job sites, especially when working in the construction or energy sectors, to assess risks and report information.

Risk Management Specialists typically work  full time from 9 a.m to 5 p.m.  On certain occasions, work beyond 40 hours a week may be necessary to meet deadlines.  Larger organisations may facilitate part-time jobs or career breaks.

Finding a new job might seem challenging. Risk Management Specialists can boost their job search by asking their network for referrals, contacting companies directly, using job search platforms, going to job fairs, leveraging social media, and inquiring at staffing agencies.

Risk Management Specialists are generally employed by: 

• Banks
• Financial Companies
• Central & Local Government
• Charities
• Commercial Businesses
• Energy & Utilities Companies
• Engineering & Construction Companies
• Insurance Companies
• Universities
• Professional, Scientific & Technical Services

Professional associations and organisations, such as the Institute of Risk Management (IRM) and the Professional Risk Managers’ International Association (PRMIA), are crucial for a Risk Management Specialist interested in pursuing professional development or connecting with like-minded professionals in their industry or occupation.

Membership in one or more adds value to your resume while bolstering your credentials and qualifications.

• Identifying appropriate risk metrics required to measure aspects of an observed risk; simultaneously monitoring and managing several risks
• Accurately assessing the size or probability of losses for clients
• Appropriately communicating risks to the senior management
• Burnouts that may be caused by working long hours; maintaining a healthy work-life balance
• Working with poorly trained colleagues may lead to frustration

Work experience, particularly in departments related to finance, is essential for Risk Management Specialists to demonstrate skills and knowledge in the field.

Apprenticeships at various levels, including college, are a valuable method of gathering experience and can be combined with part-time study. You may also complete a year in industry or seek out summer internships to gain practical experience and build your network.

Employers often require between five to seven years of relevant work experience. Finding opportunities as an accountant, financial analyst, securities sales agent, loan officer, or in insurance or legal offices, provides aspiring Risk Management Specialists with important skills and a competitive edge in the job market.

Reading as much as possible about the profession and interviewing those working in risk management will offer proof of your commitment to course providers and prospective employers.

Risk Management Specialists typically require a minimum of a bachelor’s degree in business, risk management, finance, accounting, management, economics, or a related field such as social science, law & legal studies, mathematics or statistics.

You may also major in the sciences, IT, or engineering. Some employers may prefer candidates with a master’s degree in business administration, risk management, economics, or another similar field.

High school courses in math, statistics, and accounting are recommended for gaining admission into relevant bachelor’s degree programs and understanding the course content. 

Certification demonstrates a Risk Management Specialist’s competence in a skill set, typically through work experience, training, and passing an examination. 

Certification from an objective and reputed organisation can help you stand out in a competitive job market, carry a significant salary premium, increase your chances of advancement and allow you to become an independent consultant. 

You may take up the global certification program offered by the Institute of Risk Management (IRM) to acquire the International Certificate in Enterprise Risk Management (IRMCert).

You must pass two examinations, which test your understanding of risk management standards, response, treatment, assurance, and reporting, alongside case studies and the global business environment. You may complete the certification program within five to nine months. 

You may also qualify to become a Certified Risk Management Professional (CRMP) through the Disaster Recovery Institute International (DRI). 

Requirements include taking the Risk Management Continuity Review course, passing the Risk Management Examination, and writing application essays that demonstrate your experience and accomplishments in the field. 

References would confirm any requisite work experience. Recertification mandates continuous participation in industry and further education.

Performance, experience, and the acquisition of professional qualifications drive career progression. Employees with consistently high levels of performance may be eligible for promotion every two to three years. 

Most Risk Management Specialists will begin as risk technicians or analysts. With the relevant qualifications, you may take on roles such as Risk Manager, General Manager, or Independent Consultant. You may also enter into administrative roles and work your way up from risk assistant positions to a Risk Manager role. After at least ten years of experience, you may advance towards becoming a Chief Risk Officer (CRO).

As you acquire more skills and experience, you may oversee the safety of larger operations, leading teams of employees and ensuring they are trained. You would also hold safety and loss prevention workshops and review company contracts.

Organisations often appoint Risk Management Specialists as board members and involve them in strategic planning.

With the necessary academic qualifications, self-employment by opening your own consultancy and becoming a freelance contractor are also options as a Risk Management Specialist.

Given the transferability of skills you build as a Risk Management Specialist, you may diversify across sectors for enhanced salaries, prospects and sponsorship of further qualifications.

Candidates with education, skills and experience have the best job prospects. A bachelor’s degree or higher in risk management, finance, accounting or a related field alongside relevant certification.

Continuing professional development (CPD) will help an active Risk Management Specialist build personal skills and proficiency through work-based learning, a professional activity, formal education, or self-directed learning.

CPD allows you to upskill continually, regardless of your age, job, or level of knowledge. It also keeps you updated with current legislation, which may affect your organisation.

Large employers often provide training and specialisation to newly hired Risk Management Specialists who hold a master’s degree, particularly in the banking and capital market sectors with expanding risk teams. 

You may follow a structured training program and rotate between sections to acquire a holistic view of the business, or you may receive on-the-job training from senior colleagues. Sometimes, you may also be given external training. 

Depending on your career plans and organisational size, you may choose to  specialise in employee-related injuries, employee benefits and workers’ compensation, losses to plant property, automobile losses, insurance coverage, or as a safety & training officer.

You may pursue further qualifications designed for risk management professionals, such as  diplomas or certification from accredited institutes or even master’s degree programs in risk management.  Distance learning options are usually available. 

While not mandatory, higher academic qualifications are useful if you do not hold a degree in a related subject. Further studies may help your career progression and may be supported by your organisation.

Courses typically teach you risk management as a whole or focus on specifics such as corporate & financial or health & safety risk management.

Types of Risk Management Specialists

Throughout your career in risk management, you may choose to specialise in a certain area according to the specific responsibilities and your strengths and weaknesses. 

As a market risk specialist, you would interact with traders to analyse the impact of external factors on stock values or businesses. You would target your findings on the relevant industries towards clients and investors. 

Credit risk specialists assess the necessity and benefits of companies proposing financial loans to customers. They study the actions of loan borrowers and help identify potential issues, simultaneously reviewing credit policies. 

Regulatory risk analysts are responsible for understanding the effect new regulations may have on a business. You would be producing and keeping track of resource estimates and reports on recent regulatory changes while explaining variability, scenario and quality assurance. 

Potential Pros & Cons of Freelancing vs Full-Time Employment

Freelancing Risk Management Specialists have more flexible work schedules and locations. They have full ownership of the business and can select their projects and clients. However, they experience inconsistent work and cash flow, which means more responsibility, effort and risk.

A full-time Risk Management Specialist, on the other hand, has company-sponsored health benefits, insurance, and retirement plans. They have job security with a fixed, reliable source of income and guidance from their bosses. Yet, they may experience boredom due to a lack of flexibility, ownership, and variety.

When deciding between freelancing or being a full-time employee, consider the pros and cons to see what works best for you.

The SWIFT analysis uses the “Structured What If Technique” to evaluate the risks in a project that may arise from different changes made to any part of the project.

A stitch in time saves nine is not just an adage but the cornerstone of risk management. Risk Management Specialists use their knowledge, skills, and experience to reduce the frequency of business losses and lower their severity and ensure that operations remain safe.

You shoulder the immense responsibility and challenge of managing the risks to an enterprise, its human resources, customers, assets, reputation and stakeholders’ interests. You contribute to organisational growth and continuity.

Have information readily available to decide how to avoid, reduce or transfer risk. Reducing risk lowers the number of claims and offers a choice of better insurance rates. Use risk management information systems to reinforce your ability to develop and implement safer procedures, which, in turn, enhance efficiency. 

Improve communication to spot issues well ahead of time. Above all, invest time in seeking out alternative solutions and innovations.