Risk manager: who is it and what responsibilities does it perform?

Various risks accompany any business. If they are not treated correctly, then there will be no profit. A risk manager can analyze data, prevent risks and deal with them correctly. With a competent approach, business profits increase significantly.

The risk manager must identify, analyze, classify and control factors that may destroy the company. Position is very important in the light of strategic business management. The risk manager should avoid personnel losses, profits, property of the enterprise. In small companies, these functions are assumed by the head.

Risk managers perform many tasks that keep the business afloat. They know all the intricacies of a particular company and monitor the order in it. When determining the threat, a report is prepared on it and a plan to eliminate it with minimal losses. Specialists work with various types of risks.

• Financial. This category includes situations that may prevent a business from fulfilling its obligations to contractors. So, the manager must monitor market factors that may cause a decrease in the value of assets. Credit risks are also in this category. Everything that can lead to significant financial losses.
• Operating We are talking about disruptions in business processes that may be associated with fraudsters, program crashes. This also includes a problematic personnel policy, violation of security rules. Risk managers handle legal situations that are related to the operations of an enterprise.
• Risks arising from improper management. The specialist should work on choosing a strategy so that it matches the company's goal, maintain a reputation in the market in case of its deterioration. And also the risk manager monitors the market value of the enterprise.
• Other species. Critical situations depend on the activities of the company.

Salaries of risk managers are quite high depending on experience and region. However, this is not the only factor that you should pay attention to before choosing such a profession. The advantages of the post are many.

• The profession itself has appeared recently, it is promising and young.
• Risk managers are in demand in the field of business and finance, on the stock market.
• For employment it is enough to have a financial and economic higher education. Moreover, the specialty is practically irrelevant.
• The activity is completely intellectual. Suitable for both men and women.
• High social status.
• Good career prospects.
• Employment is always official, there are bonuses to wages.
• Work experience can be obtained in any company that deals with finance.

There are no ideal professions, each has its own nuances. There are also disadvantages to this post.

• High degree of responsibility.
• If there is a serious risk, the working day may be irregular. The main task of a professional is to fix the problem in a short time.
• To obtain high wages, you need successful work experience and recommendations from past jobs.
• After graduation, you will have to spend about 2-3 years to study the characteristics of the profession in prestigious positions.

It is worth noting that the ratio of the pros and cons of working as a risk manager, each candidate must evaluate independently. The lack of physical activity and a lot of mental work makes the profession quite specific. Not everyone will be ready to bear full responsibility for their activities, and in such a position this is especially important.

To the representatives of the new profession, the authorities have many requirements. Specialists must fully work out their high salaries. In turn, the risk manager affects business income. There is a risk management department at a bank or corporation, it is there that representatives of the profession work.

Job Responsibilities:

• minimization of financial and other losses;
• prevention of threats that may lead to a decrease in profits;
• audit and analysis of decisions made by senior management when working with methodological documentation;
• daily monitoring of the causes of threats, fixing risks, data analysis and organization of management processes that will help to avoid losses;
• calculations and testing of risk management techniques;
• filling out reports and storing them;
• full control over the implementation of tasks to reduce risks;
• professional support of company employees and management.

At the very beginning, the risk manager analyzes the activities of the company and identifies possible threats. Then you need to evaluate their consequences and calculate the possible loss. If a threat is found, then the professional must choose the tools or methods for managing the situation.

The risk manager should be closely linked to finances. Having a higher education is of great importance for a career in this field. The following knowledge and skills are expected from a specialist:

• conducting analytical work - we are talking about statistical and mathematical models of data processing;
• knowledge of information technology and systems;
• understanding of the area in which the company operates;
• knowledge of jurisprudence;
• basics of working with risks;
• knowledge of threat management methods, their monitoring;
• ability to develop risk maps;
• knowledge of corporate intelligence and protection against it;
• ability to work with necessary programs;
• preparation of primary reporting.

Additionally, some companies require proficiency in English. There are equally important personal qualities that a risk manager should have. So, the specialist is different the ability to think strategically, high accuracy, perseverance, attention to detail and accuracy. Of great importance high concentration of attention and responsibility for their work.