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.
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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
| State | Hourly Wage | Annual 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.