The Basics of Risk Management
If you’re considering a career in risk management, but are short on details, let’s break down the basics of what’s involved and how you can get started.
What is Risk Management?
Every organisation must navigate uncertainty in order to achieve its goals. And while the future is impossible to predict with total accuracy, potential risks can be identified, assessed, prioritised, and mitigated to ensure objectives are met and projects are completed successfully. This work is carried out by risk management teams who systematically analyse and address any potential threats that might be coming down the track.
Risk management follows a clearly defined process comprising the following elements:
- Risk identification: Identifying all possible risks.
- Risk assessment: Identified risks are assessed for potential impact and likelihood of occurrence.
- Risk Analysis: In-depth analysis is conducted to understand the nature of each risk, its potential consequences, and the factors contributing to its occurrence.
- Risk Mitigation: Developing and implementing strategies to reduce the impact or likelihood of identified risks.
- Risk Monitoring: Ongoing monitoring is essential to track the effectiveness of mitigation strategies and identify any new risks that may arise.
- Risk Communication: Make stakeholders aware of potential threats and opportunities.
- Risk Reporting: Keep management and stakeholders informed and make necessary adjustments.
Risk Management Roles
Risk management is an essential process in many different fields including business, finance, project management, healthcare, and engineering, which means roles are plentiful and varied. At first glance risk management jobs might seem restricted to senior staff with extensive experience and leadership skills. However, there are also abundant opportunities at a more junior level if you know what kind of positions to look for.
Entry Level Risk Management Jobs
If you’re searching for a starting point in risk management, consider these entry-level roles to kick-start your career in this field:
- Risk Analyst: Coming in at a junior level, you’ll be assisting in identifying and evaluating potential risks, analysing data to assess their impact, and helping develop risk mitigation strategies.
- Underwriting Assistant: Working to assess the risk associated with insurance applications, the job involves collecting and reviewing applicant information and providing recommendations to underwriters.
- Compliance Assistant: Here you’ll work with compliance officers to ensure that an organization meets its legal obligations and adheres to industry standards.
- Operations Analyst: If you choose this risk management career path, you’ll be monitoring operational processes to identify potential risks and areas for improvement.
- Credit Analyst: Working in financial institutions, credit analysts help assess borrowers’ creditworthiness.
- Internal Audit Associate: Internal audit is concerned with managing an organisation’s internal controls, financial processes, and compliance with policies. As an associate, you’ll be required to help identify areas of risk and provide recommendations for improvement.
- Junior Risk Consultant: If you land one of these roles, you’ll find yourself working with more experienced colleagues to provide risk management services to clients.
Junior positions are readily available and these entry-level jobs provide a solid foundation for understanding the basics of risk management. As you gain knowledge and skills, you should find plenty of opportunities to specialise and progress your career