How to Become a Risk Management Consultant

 

Organisations face many different types of risk, that without proper identification and contingency planning, can seriously impact their performance, which is why risk management is so important. By anticipating problems that could be coming down the line, organisations are better placed to navigate uncertainty and remain on track to achieve their goals and objectives. 

The types of risk that businesses need to plan for include: data breaches, fraud, continuity, safety and security, and law changes. In serious instances, failure to plan could destroy an organisation entirely, which is why so much responsibility rests with the risk management team. 

If you’ve ever considered a career as a Risk Management Consultant, then you need to have good analytical skills and be able to see the big picture, making sense of complex information to determine future trends. Communication skills are also important and so is the ability to react to a changing environment because events can move quickly.

Working as part of the risk management team means having a handle on everything that could possibly go wrong and understanding what the consequences would be to the organisation should any of these scenarios play out. As well as understanding potential threats, it’s imperative to calculate the probability of each situation occurring. An organisation’s appetite for risk will depend on this analysis along with the culture of the business.

Risk management professionals are employed to help protect businesses from this kind of fallout. They carry out discovery, planning, implementation and evaluation exercises to assess and minimise exposure to risk. Driving for continual improvement, this process is evaluated on a regular basis moving forward, because as situations change, no business can afford to get left behind. 

If you’re wanting to become a Risk Management Consultant, then specific industry knowledge will stand you in good stead. And if you’ve completed a degree in an area such as law, finance or economics, this is also advantageous. Relevant experience in a risk management role is a big help, and there are also a number of certifications that are highly valued by prospective employers.
 

These include:

Chartered Enterprise Risk Analyst (CERA)

CERA qualified professionals offer a complete 360-degree view of risk. They use both qualitative and quantitative aptitudes to assess risk and implement action plans. The certification can be achieved through a mix of classroom training and self-study.

Certified Risk Management (CRM)

Qualified individuals are awarded CRM status by the National Alliance for Insurance Education and Research. This programme ensures that those who complete it are fully aware of  all operational, political, reputational and legal risks, equipping them with the skills to handle these exposures. 

Financial Risk Manager (FRM)

A specialist qualification offered by the Global Association of Risk Professionals (GARP) for those working in financial risk management, this certification enables professionals to deal with liquidity and credit risks, as well as those caused by external events. 

Professional Risk Manager (PRM)

Granted by the Professional Risk Managers’ International Association, this certification is very similar to FRM. Around 90% of the syllabus is the same.

Risk and Insurance Management Society Fellow (RIMS Fellow)

This certification route via the Risk Management Society is considered a huge advantage and prepares participants for leadership positions. Professionals who complete this qualification can use the letters RF next to their name.

If you’ve developed the right soft skills, have a relevant degree, possess specific industry knowledge, and have completed an appropriate certification, then you have all of the fundamentals in place to pursue a career as a Risk Management Consultant.