Risk Analyst Job Description: Roles, Responsibilities, Key Competencies & More

Risk analysis assesses the risk of any unfavourable event occurring against organisations and the environment. Corporations, construction groups, healthcare providers, governments, and nonprofits often conduct risk analyses. These analyses can help organisations decide whether to take on a project or pass a financial application and what actions they may need to take to protect their interests. A risk analyst manages these activities in an organisation. This article explores the risk analyst job description in detail.

If you are passionate about this subject, consider enhancing your expertise through specialised risk analysis programmes. So, let’s learn what the risk analyst does without further ado.

Who is a Risk Analyst?

A risk analyst is a finance professional who measures the financial risks related to any business decision. They help organisations reduce losses and make sound choices. The job requires analytical sophistication, so it involves data analysis, studying loss history, scrutinising processes, presenting to key stakeholders, and recommending strategies for risk reduction.

Based on a company’s activities, strategy, investments, and even natural calamities, risk analysts analyse data to determine its financial risk and assist in reducing possible losses. Risk analysts can forecast outcomes and consequences that inform a company’s projections and offer suggestions to reduce any risks they anticipate using information from historical occurrences, industry trends, economic situations, and regulatory changes.

You might work as a risk analyst for various companies, associations, or financial institutions that change policies or take new actions, which may need risk analysts.

Roles & Responsibilities of a Risk Analyst

Depending on the area of expertise, the tasks and duties of a risk analyst vary. However, the core tasks that a risk analyst usually perform include:

• To minimise the risk in business and financial decisions
• Markets analysis, financial data, industry trends, and potential threats
• Identification of processes and strategies that result in risk
• Building forecasts and predictions based on analysis data
• Reporting on findings and recommendations
• Presenting solutions to the executive team and stakeholders
• Preparation of strategies to reduce the risk
• Use of data analytics tools and RIMS

Key Competencies for Risk Analysts

Since a risk analyst must communicate with their team, evaluate complex data, and provide reports and recommendations, they must possess various professional and technical abilities. The fundamental abilities of a risk analyst are:

Types of Risk Analysts

There are four main categories of risk analysts exist, each with a slightly different focus on the types of risks that they assess:

• Credit risk analysts: They work at a bank, insurance firm, credit card firm, mortgage firm, or rating agency to evaluate the risks in financing individuals who default on loans or goods and services.

• Operational risk analysts: An operational risk analyst must assess a firm’s operations and procedures to determine the risk involved, develop tactics to reduce risks, and enhance processes that lead to loss.

• Marketing risk analysts: A marketing risk analyst specialises in industry knowledge and scrutinises and advises on investment and company share positions in the stock market. Owing to their specialisation in the risk associated with a company’s stock, marketing risk analysts are usually involved in the investment or finance industries.

• Regulatory risk analysts: It is the responsibility of regulatory risk analysts to look at changes in the regulations and new legislation impacting the stock market and the company investments.

Top Companies for Risk Analysts

Some of the top companies in India for risk management practices and good career opportunities for risk analysts include the following ones:

1. HDFC Bank-One of the largest private banks in India, HDFC Bank has much to offer to risk analysts. They provide plenty of opportunities in risk analysis and financial analysis.

2. ICICI Bank – This bank provides innovative financial services, which is why analysts would like to come and work in a bank with such a dynamic environment.

3. Tata Consultancy Services—One of the leaders in IT services, offers risk management solutions within sectors, making it a perfect place for risk analysts to assess technological and business risks.

4. Ernst & Young (EY): EY provides assurance, consulting, and risk management services and offers various risk-analysis career opportunities.

5. KPMG-Also Among the Big Four accounting companies, KPMG has become a household name in advisory services, especially risk consultancy; the analyst will, therefore, have the opportunity to handle high-profile projects.

6. Deloitte – Deloitte offers a comprehensive risk management service that ranges from financial risk to cybersecurity. This is suitable for analysts who want a diversified career.

7. PricewaterhouseCoopers (PwC) – PricewaterhouseCoopers specialises in auditing, assurance, consulting, and tax services. It hires Risk Analysts to strengthen its consultancy practices.

8. Accenture—They specialise in consulting and outsourcing services. It offers roles in risk management that overlap with technology and business processes.

9. Infosys—As one of the biggest players in the IT industry, Infosys needs risk analysts for business and IT risk. The company provides a tech-forward environment for career development.

How to Become a Risk Analyst?

To become a risk analyst, you must typically follow several steps involving education, relevant experience, and certifications. Here’s a breakdown:

1.   Educational Qualification

• Bachelor’s Degree: A bachelor’s degree is considered the minimum qualification. It could be in finance, economics, statistics, or business administration. This degree provides a student with theoretical knowledge and analytical skills.

• Master’s Degree (optional): Though not always required, a master’s degree in finance, risk management, or business analytics may add to the qualifications and prospects of a candidate for advanced positions.

2.   Relevant Experience

• Internships: Experience gained in risk management, finance, or data analytics departments could be vital for an entry-level position.

• Work Experience: More senior positions usually require experience in risk analysis, financial analysis, or related fields.

3.   Professional Certifications

• FRM: Financial risk management is an internationally recognised certification from the Global Association of Risk Management Professionals, which emphasises risk management within finance.

• Certified Risk Analyst: This certification expresses a specialised commitment to risk analysis.

• Professional Risk Manager: The PRM certification is another acknowledged designation for proficiency in risk management.

4.   Soft Skills

• Problem-solving capabilities: Risk analysts must be creative to solve problems effectively.

• Communication Skills: A risk analyst must have good verbal and written communication skills. Additionally, they should be capable of explaining complicated concepts and communicating findings related to risks to stakeholders.

• Attention to Detail: A risk analyst must possess keen attention because data analysis is highly precise, and attention to detail is required to identify and mitigate risks.

5.   Technical and Analytical Skills

• Statistical and Analytical Tools: It is important to know statistical software, such as R, SAS, or Python, and data analysis tools.

• Quantitative Skills: These skills are required to model risks and interpret the data accordingly.

6.   Regulatory Knowledge

• Understanding the rules and laws: It helps to be familiar with the legal and regulatory landscape of the sector where the risk analysis will work.

7.   Sector-specific knowledge

• Industry Experience: Depending on the sector – banking, insurance, healthcare, or energy relevant knowledge about the functioning of the industry and related risks can be beneficial.

Conclusion

Thus, there is ample scope for growth and promotion opportunities for a risk analyst in India. The job of certified risk analyst is in high demand as more companies across the economic continuum integrate themselves to operate on data-based risk management systems. The risk analyst job description prepares you for the best career. It expends competitive wages while making you a valuable asset, holding responsibility for protecting some assets and reputation from poor risk management practices.

To become a trusted expert, this field requires proper education, practical experience, and industry-recognised certifications. Taking Hero Vired’s Certificate Program in Financial Analysis, Valuation, & Risk Management, offered in collaboration with edX and Columbia University, can be an excellent option if you are prepared for the next step. During the course, you will gain the latest skills, industry insights, and hands-on training to become a trusted risk management expert. So, start your journey of becoming a risk analyst with Hero Vired.