What does a risk manager do?
Risk managers help to assess potential risks and advise on how to avoid or reduce those risks. They can be involved in identifying, evaluating and reporting risks to various parties, including underwriters, loss adjusters and business heads, to ensure they’re aware of risks relevant to their function.
Risk managers ensure that effective frameworks are put in place to deal with risk and ensure compliance with legal requirements.
Where can risk managers work?
Due to the nature of their role of managing the risk to an organisation, risk managers can work in various sectors and specialise in many different areas which can include, technology risk, market and credit risk, corporate governance, business continuity, regulatory and operational risk as well as information and security risk.
Risk managers can earn from £46,000 to £74,000 depending on their level of expertise. Because being a risk manager is not an entry level role, salaries can vary between £21,000 as a risk technician up to £44,000 as a risk analyst depending on your level of experience. Salaries can vary depending on the company you work for, the sector you work in or even if specialise in a specific area.
Degrees in risk management, economics, business, law, insurance or management can be helpful, but no specific degree is required.
It is possible to enter the profession as a trainee risk analyst at a brokerage, but risk management most often attracts mature entrants, as those with commercial and/or insurance sector experience are preferred. Some companies ask for as much as five years of underwriting experience.