Risk Management Analyst Salary
Job Description for Risk Management Analyst
Depending on the field and employer, a risk management analyst may have a variety of responsibilities. Generally speaking, this employee is a person who studies the ways large companies avoid financial risks and potential pitfalls, and makes suggestions to improve these systems and maintain their efficiency.Read More...
Almost all large corporations have risk-management teams. A risk management analyst at a non-financial company will focus mainly on assessing how well the company's insurance works and how related costs can be contained. Typically, this involves examining liability insurance as it relates to customers and auditing the ways that customer claims are collected and filed. The analyst examines these processes and looks for trends in how claims may be paid by the liability insurers for the company, and works to determine if procedures can be adjusted to reduce settlements and payouts that affect premiums paid. Additionally, the analyst constantly examines the marketplace for the most cost-effective insurance solutions possible for his/her employer.
Risk management analysts also perform similar duties related to employee claims regarding injury, wrongful terminations, and other areas that may lead to insurance claims or litigation. This analyst is less interested in specific case strategies and more interested in overall procedures, reporting methods, and claims processes. He/she also makes recommendations to help ensure the best practices which reduce overall costs for the employer.
In financial institutions, risk management analysts may have an entirely different set of responsibilities. Banks and investment groups typically use these analysts to assess investment strategies and financial products to determine worst-case scenarios and financial exposure for the company. These analysts will generate reports to balance against expected return on investment reports from financial product and investment teams. They also make recommendations regarding the expected risks and dangers that specific strategies or products may bring to the institution.
Most risk management analysts have at least a four-year degree from a college or university. Most also specialize in business and finance, while some may find it useful to continue into studying business or insurance and liability law. Generally, these analysts work regular business hours in an office environment.
Risk Management Analyst Tasks
- Assist in preventing, identifying, analyzing, handling, tracking, reducing and controlling risks to customer or company.
- Monitor for fraud, accounts that are nearing their credit limit, and past due accounts.
- Maintain and implement the risk management plan.
- Analyze portfolio trends, score cut offs, loss trends, and portfolio dynamics.
Common Career Paths for Risk Management Analyst
Risk Management Analysts who go on to become Risk Managers may see their salaries climb quite a bit. Median pay for Risk Managers is $86K annually. Typical career progression for a Risk Management Analyst involves becoming a Risk Management Manager or a Risk Management Consultant, roles that pay $23K more and $13K more on average.
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Popular Employer Salaries for Risk Management Analyst
Popular Skills for Risk Management Analyst
Survey results suggest that Risk Management Analysts put a wide range of professional skills to use. Most notably, skills in Risk Management / Risk Control, Financial Analysis, Microsoft Excel, and Data Analysis are correlated to pay that is above average. Those listing Microsoft Office as a skill should be prepared for drastically lower pay. Insurance and Claim Handling also typically command lower compensation. It is often found that people who know Microsoft Excel are also skilled in Financial Analysis.
Pay by Experience Level for Risk Management Analyst
Median of all compensation (including tips, bonus, and overtime) by years of experience.
Salaries of relatively inexperienced workers fall in the neighborhood of $59K, but folks who have racked up five to 10 years see a notably higher median of $70K. On average, Risk Management Analysts make $67K following one to two decades on the job. Survey participants who have worked for more than two decades report bringing in $73K on average.
Pay Difference by Location
For Risk Management Analysts, working in the bustling city of San Francisco has its advantages, including an above-average pay rate. Risk Management Analysts will also find cushy salaries in New York (+27 percent), Chicago (+6 percent), Boston (+6 percent), and Los Angeles (+5 percent). Risk Management Analysts in St. Louis report much lower salaries than the rest of the country — 30 percent below the national average — proving that residence is a major factor in overall pay. Philadelphia and Dallas are a couple other places where companies are known to pay below the median — salaries are 16 percent lower and 10 percent lower, respectively.
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