How to Become a Risk Manager
Recognizing, evaluating, and managing the possible risk to which the organization may be exposed, is one of the essential parts of running a profitable business. Failure to understand and plan for risk can lead to the extinction of a business. The business risk profile (risk to which an organization is exposed) is highly correlated to cybersecurity and information security for companies that deal mainly with data and information.
There are four types of risks that all organizations must confront, irrespective of the industry. Following are the categories of risks:
1. Market Risk
- Rates of interest and currency exchange
- Regulations on compliance
- Modifying trade regulations
- The varying cost of materials
2. Operational Risk
- Property and data protection
- Fraud
- Employment and business process
- Employment safety and security
3. Reputational Risk
- Data breach
- Brand perception
4. Credit Risk
- Vendor relationships
- Customer defaults
What is a Risk Manager?
An organizational Risk Manager is involved in a wide variety of a company’s activities. The position of a Risk Manager should always be an executive position in the organization. Risk management is elevated to the C Suite in some organizations, with the Chief Risk Officer (CRO) role. The Risk Manager’s role in the enterprise’s hierarchy is frequently an indication of the organization’s appetite for risk or ability to admit specific risks.
In simple words, a Risk Manager’s job is to figure out what could go wrong and the ramifications or impact on the organization if it did.
How to Become a Risk Manager?
You can achieve a rewarding career as a Risk Manager by taking the following steps:
1. Know the Skills of Risk Manager
Here are some of the essential skills of Risk Managers:
Data Analysis: Risk Managers utilize analytical abilities to forecast possible results and pinpoint the sources of a company’s total assets.
Critical Thinking: Professionals in this field must have critical thinking skills to identify risk factors and strategies for mitigating liabilities.
Cybersecurity: Professionals must have the ability to execute tried-and-true IT strategies that protect a company’s sensitive data from potential threats.
Communication: To understand risks and present mitigation techniques, a Risk Manager must communicate with all departments within an organization.
Adaptability: Because risk management focuses on anticipating and responding to the unpredicted, Risk Managers must be able to adapt to changing circumstances quickly.
Proficiency in Technology: The Risk Manager must have the ability to operate all devices, online platforms, databases, and cloud services.
2. Obtain the Required Level of Education
Risk Managers have a wide range of educational backgrounds; however, operating in risk management usually necessitates at least a bachelor’s degree. Business-related significant fields, such as financial services, business management, or economics, can help you understand the specific issues of this role.
- A bachelor’s degree in management or business administration
- An MBA degree
- A law degree
- A bachelor’s degree in finance or economic
- It is preferable to have a Financial Risk Manager (FRM)
3. Gain Experience in a Related Field
To work as an entry-level employee in the field of risk management, you don’t need to be certified. Because some certifications necessitate experience in the industry, it’s a good idea to start by working in a risk management-related field and learning from seasoned professionals. Since a Risk Manager works with finances, it is advantageous for them to have a prior business or financial experience.
- A Risk Manager should have at least 5+ years of experience in risk evaluation in the fields of business administration, finance, or accounting.
- It is advantageous for a Risk Manager to have project management and supervisory experience during their Risk Manager career to understand how to work with people and manage risk assessment teams for risk assessment and reduction.
4. Choose the Appropriate Certification for Your Career Path
Obtaining a Risk Manager certification is an essential step in any risk management profession. Certification is a way of demonstrating your expertise to potential clients and employees. Certifications can also help you get a better job. Popular certifications for Risk Managers include CRISC and CISSP. Combining these two certifications can give a good grasp for your Risk Manager career.
- Certified in Risk and Information Systems Control: CRISC is the most up-to-date and demanding risk management assessment available for IT professionals and other employees within a company or financial institution. CRISC holders assist businesses in understanding business risks and possessing the technical knowledge necessary to implement relevant IS regulations.
- Certified Information Systems Security Professional: The CISSP is the most well-known certification in information security. The CISSP was the first information security credential to meet the stringent requirements of ISO/IEC Standard 17024. It is regarded as a high-level standard of achievement and an objective measure of excellence.
5. Know-How Much a Risk Manager Makes on Average
When you are ready to make your career as a Risk Manager, know how much a Risk Manager makes on average. As of December 27, 2021, the average Risk Manager salary is $116,607, but the range typically falls between $101,087 and $133,467. Salary ranges depend on various factors, including education, certifications, additional skills, and the number of years you’ve worked in your field.
About InfosecTrian
The role of Risk Manager can be an exciting one. If you have decided to take your career to the next level by becoming one, InfosecTrain is here to help you with CRISC and CISSP certification training courses. InfosecTrain is a leading security and technology training and consulting firm that specializes in a wide range of IT security training. Customers all over the world benefit from InfosecTrain’s comprehensive training and consulting services. Whether the needs are for technical assistance, certification, or customized training, InfosecTrain has continuously provided the highest value and progress rates in the market.
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