Risk Manager — an individual responsible for managing an organization’s risks and minimizing the adverse impact of losses on the achievement of the organization’s objectives.
What Does a Risk Manager Do?
As a risk manager, your responsibilities will include overseeing operations within a company and recommending ways of minimizing risks that may come up because of financial transactions or other business dealings. You can do this by gathering data from sources within the company, as well as consulting outside sources.
What does a risk manager do in a bank?
Risk management specialists are financial managers that use specific training, skills, and experience to identify possible risks that could result in lower cash flow and higher insurance rates for the business. These specialists assess risks and implement plans and strategies to minimize business losses.
What is a risk management course?
Risk can be hard to spot. This course explains the key issues and concepts involved in effective risk management. The course defines and examines types of risk, with a focus on understanding the process of risk identification, assessment, prevention, insurance, mitigation, and recovery.
Can you avoid business risk?
Taking a proactive approach, identifying potential hazards and taking steps to reduce risks before they occur are common rules for reducing risk in a business. They will help you spot and avoid problems that can devastate your business.
Career Requirements
Degree Level | Bachelor’s degree; master’s often preferred |
Degree Field | Business administration, finance, accounting, or another related major |
Certification and Licensure | Healthcare-related positions may require healthcare risk manager licensure; voluntary certification available |
Experience | 5+ years of business or finance experience |
Key Skills | Analytical, organizational and communication skills; detail-oriented; proficiency in math, accounting; use of financial analysis and credit management, enterprise resource planning, and spreadsheet software |
Salary | R 1890939.522018 median annual wage for financial managers) |
The Role Of A Risk Manager
Due to the recent global economic downturn and the much publicized fall of one of the world’s leading investment banks risk management has become a very high profile topic. As a result Risk Managers are in increased demand. Here we take a look at what it takes to become a Risk Manager.
Taking risk is an integral part of the banking business. No institution can function without assessing risks as its profitability is based on the ability to take and manage these risks. Even though the front office might drive revenue production, all businesses must be approved by risk.
Risk exists and banks must accept risk if they are to thrive and meet an economy’s needs. But they must manage the risks and recognise them as real. Risk matters. Whether or not it is temporarily ignored, it will eventually come out.
Risk management has tended to be most active in international capital markets and derivative activities, where given the complexity of the transaction and products, a requirement exists for resources that are able to develop sophisticated systems for measuring and evaluating risks. They needed to identify the key factors driving market volatility and to quantify the underlying risks in order to manage their positions and product lines.
Taking risk is an integral part of the banking business. No institution can function without assessing risks as its profitability is based on the ability to take and manage these risks.
Is there demand for qualified risk managers South Africa?
Yes, plenty. A critical concern in developing a basic risk management process involves developing or attracting personnel with the skills necessary to apply risk management tools in meaningful ways.
Risk managers can expect to quickly climb up the corporate ladder to management level as they can become specialists within a certain area. For those risk managers who want to keep their experience base broad across a range of risk functions, risk is still a growth area and at the forefront of financial services recruitment.
Market Risk – are easily transferred, often through swaps and other derivative products.
Operating Risk – can be reduced through insurance, diversification and internal controls.
Credit Risk – credit risk, is fundamentally the business of banking and is the activity which most banks see as their principal competitive advantage.
Typically, financial market participants have far less information than banks do about the credit quality of individual borrowers, and the terms and conditions of the borrowing arrangements are often complex and structured case-by-case.
Leading institutions around the world have made substantial progress in measuring risk in recent years. Going forward we anticipate continued focus with Basel 3 / Solvency 3 and the requirement for increased capital adequacy.
Below are steps to Become A Risk Manager In South Africa
Step 1: Earn a Bachelor’s Degree
The minimum requirement for becoming a risk manager is generally a bachelor’s degree in a field related to finance or accounting. A 4-year degree in economics or business administration may also be suitable.
Some colleges and universities offer degrees in financial services and risk management specifically geared for entrance to this career. Classes in these programs cover topics like financial markets, taxation, derivatives, risk management, portfolio management and investment analysis.
To get the most out of your education, complete an internship. Experience is essential to becoming a risk manager, so students may benefit from gaining some practical experience through internships at the undergraduate level.
Along with learning from seasoned risk management professionals, interns might use these opportunities to get their foot in the door of a financial company or business.
Step 2: Consider Earning a Graduate Degree
Many employers prefer candidates who have graduate degrees in fields relevant to risk management, particularly in business administration or a similar major, like finance or economics. Some Master of Business Administration programs allow students to focus their studies specifically in risk management.
Such programs might include coursework in healthcare finance, business operations, enterprise risk management and corporate finance. Students can also expect to complete capstone courses in risk management.
Step 3: Gain Relevant Experience
Employers usually seek risk managers who have at least five years of experience working in a field related to risk management. Aspiring risk managers might gain such experience by working entry-level positions in the business or finance sectors.
Many start out as accountants, auditors, financial analysts or loan officers. Select companies will hire risk managers directly out of college and train them for the job, though this is less common.
It can also help your career to get certified. Certification is not mandatory for this career, but it can help risk managers demonstrate proficiency and dedication to the discipline. The CFA Institute, for example, offers the Chartered Financial Analyst credential to candidates with bachelor’s degrees or four years of experience in the field (or an equivalent combination of education and experience).
Candidates must also pass an exam. Other certification options include the Associate in Risk Management credential offered by the South African Institute for Chartered Property Casualty Underwriters as well as the Certified Professional in Healthcare Risk Management credential offered by the American Society for Healthcare Risk Management.
Step 4: Obtain Necessary Licensure
Some risk management positions may require licensure. In some cases, employers looking for risk managers in a healthcare setting may require applicants to hold state licensure as a healthcare risk manager.
In fact, some states, such as Florida, require this licensure for such positions. Depending on the state in which they live, candidates for licensure may be required to complete a training course and pass a state exam.
Step 5: Advance with Experience
After acquiring several years of experience in the business or finance industry, individuals may become eligible for risk management positions. Those who demonstrate a solid grasp of a variety of departmental operations can go on to become supervisors within their companies.
Additionally, highly experienced risk managers sometimes choose to open their own consulting firms.
To recap, with an undergraduate degree and experience, along with voluntary certification and possibly licensure, risk managers can earn about R 1743346.07to analyze and measure organizations’ exposure to financial uncertainties.
Career progression
Risk managers can expect to quickly climb up the corporate ladder to management level as they can become specialists within a certain area. For those risk managers who want to keep their experience base broad across a range of risk functions, risk is still a growth area and at the forefront of financial services recruitment.
What qualifications do you need to be a risk manager In South Africa?
A risk manager will be expected to have a bachelor’s degree in risk management as a minimum. More and more organizations now expect a master’s degree as well. The most acceptable master’s degree is the MBA in Risk Management, although those in MBA in economics, MBA in accounting, or MBA in finance are also acceptable.
Where can I study risk management in South Africa?
University of Cape Town Business Risk Management
University of Cape Town Business Risk Management. GetSmarter.
University of Cape Town Compliance Management. GetSmarter.
Computational Finance. University of the Western Cape.
University of Cape Town Human Resource (HR) Management. GetSmarter.
University of Cape Town Bookkeeping.
Is risk management in demand in South Africa?
Is there demand for qualified risk managers South Africa? Yes, plenty. A critical concern in developing a basic risk management process involves developing or attracting personnel with the skills necessary to apply risk management tools in meaningful ways.
Is risk management a good job In South Africa?
Almost overnight, risk management careers have become one of the most important jobs in the world, and that’s not an understatement or a euphemism on my part. These risk committees are focused on situations such as planning for a crisis and dealing with employees working from home, data security, and financial stress.
What is a risk management course In South Africa?
Risk can be hard to spot. This course explains the key issues and concepts involved in effective risk management. The course defines and examines types of risk, with a focus on understanding the process of risk identification, assessment, prevention, insurance, mitigation, and recovery.
Can you avoid business risk In South Africa?
Taking a proactive approach, identifying potential hazards and taking steps to reduce risks before they occur are common rules for reducing risk in a business. They will help you spot and avoid problems that can devastate your business.
How long does it take to be a risk manager In South Africa?
Typically, risk managers have at least five years of business or finance experience.
Career Requirements.
Degree Level | Bachelor’s degree; master’s often preferred |
---|---|
Experience | 5+ years of business or finance experience |
What is a risk manager salary in South Africa?
R1,108,967 (ZAR)/yr.
Is risk management stressful In South Africa?
Risk management & compliance
Market risk and credit risk management roles are particularly stressful, said Khan. It’s not just the stress. It can also be the feeling of disempowerment. “You’re there to escalate issues, but when you do, nothing is done about them.
How do I become a financial risk manager in South Africa?
A three–year general Bachelor of Commerce degree. A Bachelor of Commerce with a combination of financial, mathematical/ statistical, legal and management subjects. A three-year directed Bachelor of Commerce in Risk Management.
What do risk managers do in banks In South Africa?
As a risk manager you’ll be responsible for managing the risk to an organisation, its employees, customers, reputation, assets and interests of stakeholders. You’ll identify and assess threats to an organisation, put plans in place for if things go wrong and decide how to avoid, reduce or transfer risk.