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

Various risks accompany any business. If they are mishandled, there will be no profit. A risk manager knows how to analyze data, prevent risks and deal with them correctly. With the right approach, business profits increase significantly.

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

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

• Financial. This category includes situations that can prevent a business from fulfilling its obligations to counterparties. Thus, the manager must monitor market factors that may cause a decline in the value of assets. Credit risks fall into the same category. Anything that can lead to significant financial losses.
• Operating rooms. We are talking about failures in business processes that can be associated with scammers, software malfunctions. This also includes problematic personnel policy, violation of safety rules. Risk managers handle legal situations that are related to the operational activities of the enterprise.
• Risks arising from mismanagement. The specialist must work on choosing a strategy so that it corresponds to the company's goals, to maintain a reputation in the market in the event of its deterioration. And also the risk manager monitors the market value of the enterprise.
• Other types. Critical situations depend on the activities of the company.

Risk managers' salaries are quite high, depending on experience and region. However, this is not the only factor that should be considered before choosing such a profession. There are many advantages of the position.

• The profession itself appeared recently, it is promising and young.
• Risk managers are in demand in business and finance, in 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 position.

• A high degree of responsibility.
• If a serious risk arises, the working day may be irregular. The main task of a professional is to fix the problem in a short time.
• To get a high salary, you need successful work experience and recommendations from past jobs.
• After receiving an education, you will have to spend about 2-3 years to study the features of the profession in non-prestigious positions.

It should be noted that the ratio of the pros and cons of working as a risk manager should be assessed independently by each candidate. Lack of physical activity and a lot of mental work makes the profession quite specific. Not every person will be ready to take full responsibility for their activities, and in such a position this is especially important.

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

Job responsibilities:

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

At the very beginning of the journey, the risk manager analyzes the activities of the company and identifies possible threats. Then it is necessary to assess their consequences and calculate the possible loss. If a threat is found, then the professional must select tools or methods to manage the situation.

The risk manager must be closely related to finance. Having a college degree is essential for a career in this field. The following knowledge and skills are expected from a specialist:

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

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