Different Types of Risk Jobs
If you are a graduate looking to get into risk or a professional hoping to make a career change or make a side step, you will want to know what types of risk jobs you can expect to come across.
Traditionally when you think of risk professionals, you either think of a risk manager or a risk analyst, who will advise companies and businesses to help them make important business decisions. However, there are many more sides to working in risk such as Market Risk, Credit Risk, Operational Risk, Legal Risk, Financial Risk and Cyber Risk and Technology Risk.
Those looking to enter the Market Risk function should have a solid background in regulatory compliance and knowledge regulations such as the Basel III Accord, the Capital Requirements Regulation and Directive (CRDIV) and the proposals set by the FRTB. Within this type of risk job, you will be looking at stock prices and potential loss due to movement in interest rates and outside factors, this is also known as asset-liability management.
In a Credit Risk job, you will look at the ‘creditworthiness’ of a business or organisation. Ultimately, your focus would be to assess the applicant’s (whether that is a business or an individual) risk factor when applying for a loan. This is a role well suited to those who enjoy analysing numbers.
As an Operational Risk professional, you will be partly responsible for the controls implemented in a financial organisation. Your role will be to assess and mitigate any risks so the organisation can avoid potential financial losses. Being an analytical and logical thinker, as well as a natural leader will greatly benefit you in this type of risk position.
Similar to Operational Risk, in a legal risk job you will be tasked with making sure the company complies to regulatory obligations such as policies, standards and laws. Many companies require professionals in legal risk to have a background in law or legal studies.
As a generalist risk job, Financial Risk incorporates many aspects of credit risk, market risk and operational risk. Within this type of role, your main responsibility will be to identify and analyse potential financial risks such as assets and earning potentials. Being a good communicator and commercially aware will help you in a Financial Risk job.
Cyber and Technology risk
A fairly new edition to the range of risk jobs, Cyber and Technology Risk is fast becoming a vital part of any business. As with other risk roles, the main task is to detect and to mitigate risk, however whilst working as part of the IT department, you will be looking for risk of financial loss, disruption or damage from information technology systems.