According to Mordor Intelligence, the global risk analytics market is growing at a CAGR of 14% as of 2022. The global value of just this sector is expected to reach Rs. 3,89,902 crores $52.33 billion by 2026. In India, 50% of all asset-intensive organisations will follow risk management best practices while operating such as delegating risk owners and risk officers.
This is amazing news for all the budding risk analysts, credit analysts, and risk managers out there. The increased spending in this sector would result in more job vacancies and career prospects Also, with most organizations now adopting modern risk management solutions and technology, there is a huge demand for risk managers with these specialized skills.
Risk Management has become one of the most valuable sectors in the globe right now. It is one of the most lucrative career options for both freshers and experienced finance professionals. Upskilling with financial risk management courses or certifications is a great way of gaining access to jobs in the domain.
Risk management is a great career and upskilling option to make yourself invaluable to any place you work for. Managing risk is crucial for companies of all sizes. Risk management is involved with reducing, managing, monitoring, controlling, or altogether avoiding the adverse effects of various active and potential organizational risks.
Without a system for handling risk and without the help of skilled professionals to engage and minimize this risk, organizations are posed with hurdles for smooth business operations. Risk managers need to develop immediate strategies to minimise or mitigate risks while also preparing their organizations for anticipated risks in advance.
This is why most professionals who invest their time in a financial risk management certification to learn the necessary and key skills are able to enjoy attractive salaries. Risk managers are very valuable to their organizations and thus are remunerated equally well. As a matter of fact, according to Glassdoor, skilled professionals in Risk Management can earn salaries close to ₹34,71,458 per year in India.
The sources of risks have diversified with the increasing dependency on technology and digital infrastructure. Even a data breach or data loss can cost companies thousands if not millions of rupees. Companies must also consider the increasing volatility of the market and the growing interest in experimental systems, platforms, and services.
Risk management covers strategic risk, operational risk, compliance risk, financial risk, market risk, credit risk, reputational risk and even health risks. Thus, professionals in this sector require a holistic approach towards organizational risks, and hence why companies choose to reward their risk management specialists so well.
Risk management goes hand-in-hand with financial management, thus, fueling an increase in prospects for finance professionals. This will also positively affect the employment of risk managers and risk management professionals.
According to Recruiter.com, there has been an average growth of 1.31% in the employment of risk managers as well. This will result in 50,000 new risk management jobs by 2029. Joining this sector is a great idea for professionals who wish to experience consistent growth in their careers.
Salaries and Responsibilities of Risk Managers
Job Responsibilities of a Risk Manager
Risk managers are tasked with identifying, assessing, and evaluating risks. For instance, there will always be financial and market risks when a company deals with credit transactions or foreign exchange. Risk managers help companies reduce or completely avoid exposure to these risks.
Even if a risk or an active threat cannot be avoided, it is up to the risk manager to minimize, contain or transfer the adverse effect of the risk. Risk managers also come up with disaster relief plans in case the damage cannot be tackled or mitigated. Risk management professionals are masters of implementing safety nets to manage the different risks they identify.
Let us take an example of risks in foreign exchange. A company might be at threat due to fluctuations in the exchange rates of certain currencies that the company deals in. In such a case, it is the risk manager’s responsibility to plan and implement strategies that can help the company minimize any financial damage.
For instance, the risk manager might choose to liquidate the assets in a later period or recommend the company not to engage in business operations during risky periods in the market. Risk managers can also incorporate contingency plans into the business processes of these organizations for these unprecedented situations.
Another example of how necessary risk managers are can be found when looking at money lending organizations or banks. Credit analysts or risk analysts analyze the history and repayment behaviour of customers (borrowers) to identify if they are eligible to be sanctioned the requested loan amount. Similarly, for large investments (startups, corporate loans, or funding), risk managers assess investments and help their companies make suitable investments by identifying risks and bad ventures to avoid losses.
Types of Risk Manager Job Roles
- Enterprise Risk Manager
- Financial Risk Manager
- Operational Risk Manager
- Supply Chain Risk Manager
- Digital Risk Manager
Salaries of a Risk Manager
Risk managers with around one year of experience or even freshers earn an average of ₹6,34,015 per annum (based on 12 risk manager salary packages). Meanwhile, risk managers with 1 to 4 years of experience can earn an average of ₹8,01,764 annually (based on 75 risk manager salary packages).
Experienced risk managers with 5 to 9 years of experience earn ₹11,84,094 on average per annum (based on 69 risk manager salary packages). Veteran risk managers with 10 to 19 years of experience earn ₹14,91,249 (based on 71 risk manager salary packages) annually on average. The sky is the limit for financial risk managers with 20 and more years of experience, and they can earn extremely lucrative pay packages.
The average salary of a risk manager in India is ₹10,05,456 per annum.
Salaries that risk managers are offered also depend on their location as well. Here are the average salaries that the risk managers are offered in different Indian metro cities:
- New Delhi: ₹17,10,641 per annum
- Mumbai: ₹12,48,748 per annum
- Bangalore: ₹11,96,746 per annum
- Hyderabad: ₹18,75,549 per annum
- Pune: ₹11,47,826 per annum
- Chennai: ₹13,34,211 per annum
Here are the average compensations risk analysts earn across top MNCs in India:
- American Express - ₹15,80,823 per annum
- Credit Suisse - ₹12,63,917 per annum
- J.P. Morgan - ₹12,63,917 per annum
- Paypal - ₹6,40,279 per annum
- Amazon - ₹4,11,671 per annum
- E Y - ₹4,53,531 per annum
- KPMG - ₹4,10,915 per annum
- Deloitte - ₹5,25,662 per annum
In India, risk managers will experience an ample amount of growth opportunities and career prospects in the years to come. This is especially due to the increased spending in this sector by companies (9.5%) as well the rapid growth (9.5%) of this sector.
This is the case not just in India, as the U.S. counterparts of Indian risk management professionals are also experiencing this growth. Risk management as a sector in the U.S. has one of the highest CAGR (Compound Annual Growth Rate). This trend can be noticed globally and is great news for risk management professionals who wish to work outside India.
Risk management professionals can get hired in more specific roles as Risk Analysts, Risk Consultants, Risk Managers, Credit Analysts, Investment Consultants, and Risk Strategists. Risk management professionals find valuable job roles in the most sensitive sectors such as IT, finance, and in organizations that carry out large to medium-scale business operations.
With time and experience, skilled risk management professionals find themselves in the position of Risk Heads (of a company or project), Risk Officers, Senior Risk Managers, and Chief Risk Managers. Finance is one of the most lucrative sectors for risk management professionals as risks can directly impact the standing of a company.
Risk management is a sensitive domain and job roles related to organizational risk come with huge responsibilities. Risk management professionals must keep the organization’s assets and employees compliant and safe while also helping the company make good investments and grow. Thus, risk management jobs involve maintaining the perfect balance between investing in opportunities to grow while minimizing risk.
Hero Vired has one of the best integrated risk management programs for individuals who wish to work in this sector. The program covers accounting, regulations, risk management, and many other tools such as Excel and VBA (Visual Basic for Applications). For more info about this financial risk manager course, check Hero Vired’s Certificate Program in Financial Analysis, Valuation & Risk Management.