Risk management involves analyzing and evaluating risk for a wide variety of entities and purposes. Those wishing to begin a career in risk management must be aware of the various fields where risk management comes into play, including law, accounting, and insurance. Companies are often faced with risks involving finances, liabilities, and a variety of additional factors that make hiring qualified risk management professionals a priority. A risk management professional can save a company thousands of dollars a year by carefully evaluating risks and determining the best way to alleviate or avoid their potential consequences. Individuals aspiring to a career in risk management should be curious, inquisitive, and analytical, and they should follow up these natural tendencies with the appropriate education.
First Steps
Those interested in training to work in risk management generally must first work towards a Bachelor’s degree. While there are academic programs in risk management at a variety of universities, those interested in a career in risk management can also pursue degrees in related areas such as mathematics, economics, business administration, or actuarial science.
It can also be wise for those interested in working in risk management to choose a specialty early on in their educations. As in law, medicine, accounting, or a variety of other fields, in risk management there are a variety of specialties to choose from. Such specialties include health, security, law, and more. Your specialty should depend on your unique blend of interests. If you are interested in science, you might go into risk management in a healthcare context, whereas those interested in mathematics might wish to work in finance or investment.
Once a specialty has been chosen, individuals interested in risk management as a career should arrange some on-the-job experience through an internship or through a similar program while still in college. As soon as possible, aspiring risk management professionals should begin compiling experience that will make their resumes competitive.
Advanced Study and Professional Positions
Graduate school can range from being useful to being absolutely necessary for the risk management professional. While risk management Master’s programs are available, there are also MBA programs that focus on risk management available. These MBA degrees are offered through many different business schools, and they tend to be quite marketable on the job market.
Certification can also be an important professional credential for a risk management professional. Several different risk management certifications exist, including two major certifications: the Financial Risk Manager (FRM) certificate and the professional risk manager (PRM) certificate. These certificates involve an exam that tests one’s knowledge of mathematics, finance, business ethics, and more. These exams are quite extensive and typically require a significant amount of study for a successful result. Although these certifications are generally not required of risk management professionals, they can certainly make an applicant to a risk management position more competitive, and they are likely to become increasingly important as the risk management field grows in significance.
Risk management is a lucrative field that can prove to be rewarding for professionals interested in learning the complex factors that combine to create risks for an entity and the various techniques entities utilize to mitigate these risks.
