Average Risk Management Analyst Salary by State

A risk management analyst studies the ways that a large company can avoid potential financial risks, and then make suggestions to improve systems and efficiency.

All large companies have risk management teams that they rely on. A risk management analyst at a non-financial organization will focus on assessing how well the organization’s insurance works, and how costs can be reduced.

Usually, this involves looking at the firm’s liability insurance as it relates to the client base and audit ways customer claims are collected and filed. The risk management analyst looks at these processes and studies trends for how claims can be paid by insurers for the company, and try to reduce settlements and payouts that affect premiums. (Payscale.com)

Risk management analysts in other areas also perform important work as it it relates to employee claims as far as the injury, wrongful terminations and other areas that could lead to litigation or claims. This analyst is less focused on case strategies and is more focused on procedures, reporting methods, and the claims process.

In a financial institution, the risk management analyst assesses investment strategies and financial products to determine the worst-case scenarios and the degree of financial exposure for the organization. The analyst creates reports to balance against expected ROI reports from investment and financial investment teams.

A field related to risk management analyst is a financial analyst, which has the following duties: (BLS.gov)

  • Perform risk analysis and recommend certain investments and investment collections
  • Evaluate historical and current financial data to make investment recommendations
  • Study business and economic trends to avoid engaging in risky investment strategies
  • Examine the financial strength of a company to determine the value
  • Prepare written reports of financial strength and investment risk for stakeholders

Risk Management Analyst Salary Outlook

Most risk management professionals have a bachelor’s or master’s degree in business or finance, while others focus on insurance and liability law. Before earning your degree, learn more below about the salary outlook for risk management analysts.

Bureau of Labor Statistics

The Bureau of Labor Statistics collects salary data on financial analysts, which is related to a risk management analyst, as many of these professionals work in financial risk assessment. BLS states the median salary for financial analysts is $85,600, with the lowest 10% earning $52,400 and the top 10% earning more than $167,500 per year. If you have your MBA or a master’s in finance and years of experience, you will be able to earn a higher salary. (BLS.gov)

In May 2018, the median wages for financial analysts in various industries were as follows:

  • Securities, commodity contracts and other financial investments: $101,400
  • Professional, scientific and technical services: $84,500
  • Management of companies and enterprises: $83,600
  • Credit intermediation: $81,400
  • Insurance carriers and related activities; $78,800

A related field is that of budget analyst. BLS reports that the median salary for budget analysts is $76,200 with a range between $49,800 and $116,300. (BLS.gov). Salaries in top-paying industries were:

  • Professional, scientific, and technical services: $83,800
  • Federal government: $82,200
  • Local government: $71,400
  • Educational services: $66,300
  • State government: $65,400

Payscale.com

Payscale.com reports the average risk management analyst salary is $68,500 with a range between $48,000 and $103,000. Some of the reported salaries are: (Payscale.com)

  • PNC Financial Services Group: $56,000
  • JP Morgan Chase: $81,000
  • Dallas Community College District: $48,000
  • Aon Benfield: $56,000
  • Keybank: $62,000

Related, popular skills and salaries are:

  • Risk management and risk control: $69,800
  • Data analysis: $67,600
  • Microsoft Excel: $65,800
  • Financial analysis: $65,300
  • Microsoft Office: $73,500

Your pay as a risk management analyst also will vary by work experience:

  • Less than one year of experience: $57,800
  • One to four years of experience: $65,100
  • Five to nine years of experience: $67,700
  • 10-19 years of experience: $80,200
  • More than 20 years of experience: $80,122

Your salary as a risk management analyst also can change by location:

  • San Francisco: +25%
  • New York City: +20%
  • Houston: +1%
  • Chicago: -3%
  • Boston: -8%
  • Dallas: -9%

Ziprecruiter.com

Ziprecruiter.com reports the average salary for risk management analysts is $74,700 with a range between $41,000 and $118,500. Most in the field earn between $51,500 and $93,000. (Ziprecruiter.com)

Indeed.com

Indeed.com reports average salaries for risk analysts is $82,100. For risk managers, the average salary is $108,300, and for a quantitative analyst, the wage is $144,300. (Indeed.com)

Salary.com

Salary.com reports the average salary for a risk management analyst is $78,700 with a range between $69,808 and $87,500. (Salary.com)

Job Outlook for Risk Management Analysts

The Bureau of Labor Statistics reports employment for financial analysts will rise by 6% by 2028, about as fast as average compared to other occupations. A larger number of financial products and a higher need for in-depth knowledge of geographic areas will lead to more employment growth. (BLS.gov)

Demand for risk management analysts and financial analysts also will depend on economic growth. Financial analysts are needed to evaluate the risk of investment opportunities when new companies start-up or business expands. Also, emerging markets across the world are offering new investments, and these require risk management analysis and an understanding of that geographic area.

Demand for risk managers also will grow because of the increasing reliance on big data and technology improvements that allow financial analysts to have better access to more data. This type of analysis will help companies to assess risk more effectively and manage their finances better, while also finding better investment vehicles.

Risk Management Analyst Salary by State

StateHourly WageAnnual Salary
New York - Risk Management Analyst$39.74$82,649
Massachusetts - Risk Management Analyst$39.45$82,054
New Hampshire - Risk Management Analyst$38.49$80,063
Maryland - Risk Management Analyst$36.61$76,159
Hawaii - Risk Management Analyst$36.44$75,800
Connecticut - Risk Management Analyst$36.34$75,581
Alaska - Risk Management Analyst$36.33$75,576
Montana - Risk Management Analyst$36.33$75,576
North Dakota - Risk Management Analyst$36.33$75,576
Wyoming - Risk Management Analyst$36.33$75,576
Nevada - Risk Management Analyst$36.33$75,576
Idaho - Risk Management Analyst$36.33$75,576
Vermont - Risk Management Analyst$36.24$75,375
Nebraska - Risk Management Analyst$36.17$75,229
Washington - Risk Management Analyst$36.15$75,185
Rhode Island - Risk Management Analyst$35.77$74,409
California - Risk Management Analyst$35.75$74,366
Virginia - Risk Management Analyst$35.58$73,998
Arizona - Risk Management Analyst$35.20$73,208
New Jersey - Risk Management Analyst$34.97$72,738
Colorado - Risk Management Analyst$34.51$71,779
West Virginia - Risk Management Analyst$34.49$71,738
Minnesota - Risk Management Analyst$34.35$71,458
Pennsylvania - Risk Management Analyst$34.35$71,453
South Dakota - Risk Management Analyst$34.34$71,427
South Carolina - Risk Management Analyst$34.29$71,322
Tennessee - Risk Management Analyst$34.16$71,045
Delaware - Risk Management Analyst$34.14$71,013
Oregon - Risk Management Analyst$34.11$70,946
Utah - Risk Management Analyst$33.87$70,449
Ohio - Risk Management Analyst$33.80$70,313
Kentucky - Risk Management Analyst$33.77$70,234
Indiana - Risk Management Analyst$33.57$69,833
Oklahoma - Risk Management Analyst$33.49$69,661
Louisiana - Risk Management Analyst$33.39$69,458
Wisconsin - Risk Management Analyst$33.34$69,338
Kansas - Risk Management Analyst$33.23$69,123
Maine - Risk Management Analyst$33.20$69,057
Iowa - Risk Management Analyst$33.12$68,900
Texas - Risk Management Analyst$32.57$67,747
Georgia - Risk Management Analyst$32.45$67,505
Arkansas - Risk Management Analyst$32.33$67,249
New Mexico - Risk Management Analyst$32.15$66,868
Alabama - Risk Management Analyst$31.91$66,371
Michigan - Risk Management Analyst$31.87$66,297
Illinois - Risk Management Analyst$31.77$66,088
Mississippi - Risk Management Analyst$31.41$65,342
Missouri - Risk Management Analyst$31.09$64,677
Florida - Risk Management Analyst$30.63$63,707
North Carolina - Risk Management Analyst$27.86$57,939

Source: Ziprecruiter.com, January 2020.

Summary

As the financial markets grow in complexity and regulations get stricter, the demand for risk management professionals especially in finance will only grow in the next 10 years. This is an excellent career path for a financial and risk management professional with a background in business management and finance.