The future is extremely prominent for the risk professionals, this is because organizations across the board have (now) fully understood the importance of implementing enterprise-wide risk management practices and are investing to protect their business organizations.
This career trajectory for the risk experts can help them lead to the C-Suite, as Chief Risk Officers responsible for helping CEOs and Boards of Directors to guide through the growth strategy and direction of business organizations.
Benefits of Successful Risk Management Program-
It helps an organization consider the full range of risks it faces. Risk management also examines the relationship between risks and the probable impact they could have on an organization's strategic goals.
A career in Risk Management - Degrees and Certifications, Skills Needed, Salary
A career in Risk Management is in very high demand in today’s date, thanks to the problems faced by various industries due to COVID-19. Following is the information about the degrees and certifications, skills required, career options and salaries in this field.
Why a Risk Management Career Is in Very High Demand Today?
Earlier, risk management was limited in scope in the fields of finance and insurance. However, events like the financial crisis, the beginning of the Covid-19 pandemic and multiple corporate failures, have brought the need and importance of enterprise risk management to the forefront.
Before the Pandemic Hit
Not many companies and businesses would have considered a pandemic or an endemic as a serious risk, but the result that we all know, and the worldwide lockdown severely crippled most industries and business organizations causing the loss of millions of livelihoods, people and industries altogether were devastated.
Covid-19 has however served as a wake-up call, highlighting the importance of possessing strong risk management processes that help identify and evaluate the potential/foreseen risks across the enterprise, rather than just considering and focusing on just finance-related aspects.
Hence, it automatically generated a huge demand for Risk Intelligent Professionals. The incoming of these problems altogether has raised the demand for qualified risk professionals as more and more companies seek to shore up their defences against future crises.
No Limit to Risk
The risk perspective is not only restricted to the risk function. It is rather inherent across all the departments as well as functions. However, some threats are limited in scope while others can have an impact across the entire business.
There is a once in a lifetime chance for the students-
young professionals, and even senior company leaders too, to add value to organisations, by indulging risk awareness and expertise to their respective job roles and positions, by bringing whether as part of a specialized risk team or as risk champions in other departments such- as HR, sales, supply chain, finance, marketing, IT and customer services.
Insurance-related Risk Management diploma/certification sounds tough but honestly, there is nothing in this world wherein there is no competition. Many institutes offer risk management specialisations in the insurance field, google it, you will find many.
Students can either opt for certification from one such institute or go for a post-graduate diploma in insurance and risk management, or even pursue Actuarial Science (it is a discipline that assesses financial risks in the insurance and finance fields, using statistical and mathematical methods) as part of their interest in risk.
Skills Required
Being a Risk management professional demands possessing excellent analytical skills, and you should be comfortable with understanding and interpreting data and taking risk-based ‘balanced’ decisions across the entity.
A good grasp of business, and understanding the specific sector they work in, are also important.
Soft skills such as communication, diplomacy and negotiation are also highly valued, as risk professionals are often required to engage with different stakeholders who have distinct requirements and constraints that need to be addressed.
In terms of eligibility, IRM qualifications require no prior skills but basic logic and business skills as the curriculum focus more on qualitative risk management.
Note-
To qualify for studying FRM, demands basic mathematical and quantitative skills, while a Masters in Risk Management will require quantitative, analytical as well as business proficiencies, plus a good GMAT score and work experience.
A career in Risk Management- Salaries
The pay scale for risk professionals relies upon experience and designation they're properly compensated because of the vital nature of the risk management role.
Salaries for risk analysts can range from INR 51,000 to INR 10,00,000 per annum, while remuneration for risk managers ranges between INR 10-20 lakh per annum.
Depending upon their breadth of experience and skills, Chief Risk Officers (CROs) can command up to INR 14 lakh to INR 1 crore per annum.
Growth prospects and career options
You can become a risk analyst, risk specialist, risk advisor, safety consultant, and loss control, specialist.
The future is extremely promising and outshining for risk professionals, as organizations across the board have now fully understood the need for implementing enterprise-wide risk management practices and are investing to protect their businesses.
The career trajectory for risk experts can lead them to the C-Suite, as The Chief Risk Officers responsible for helping out CEOs and Boards of Directors in guiding the growth strategy and direction of organizations.
Written by – Riya Gupta
Edited by- Harshdeep Kaur
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