what is an operational risk manager?
As an operational risk manager, your job is to analyse a business's day-to-day operations and identify risks that may arise from internal challenges, mismanagement, and breakdowns. You assess risks across various departments of the company and evaluate the consequences of their occurrence. Once you identify issues, you create new company policies and structures to reduce the chances of risks occurring. Additionally, you continuously monitor the company's operations to identify new threats and assess the impact of any changes in legislation. This role is crucial in various industries, including mining, manufacturing, and engineering, as well as consulting firms where you manage human resources or identify risks in the company structure.
view vacanciesaverage operational risk manager salary
As someone in the role of an operational risk manager, your yearly salary typically averages around $117,000. Starting out in an entry-level position, you can expect a yearly compensation package of $83,000. However, as you progress to a senior position, your earnings can increase to over $150,000 annually. Your remuneration package is influenced by a range of factors, such as your level of work experience and educational qualifications.
what factors influence the salary of an operational risk manager?
As you embark on your career journey, it's important to recognise that starting out may mean lower pay due to limited experience and qualifications. However, don't let this discourage you. As you continue to learn and grow in your field, your earning potential will also increase. Remember, some companies may require specific certifications or qualifications which can give you an advantage. Your industry can also play a role in your salary prospects, with higher risks often resulting in higher pay. And while larger organisations may offer greater resources and higher salaries, don't underestimate the potential for growth and opportunity in smaller businesses. Stay motivated and keep pushing yourself to reach your full potential.
types of operational risk managers
As an operational risk manager, you are responsible for managing a variety of operational risks. Some areas of focus may include:
- internal and external fraud: your role involves mitigating risks related to theft, bribery, and non-compliance with company regulations. You also deal with operational risks stemming from external fraud such as computer hacks, forgery, or theft.
- technological failures: as an operational risk manager, you evaluate the likelihood of exposure to risk due to technological failures. For example, you may find ways to minimise loss of information and impact on the business in computer systems or hardware and software.
- labour relations and workplace safety: as an operational risk manager, it is your responsibility to ensure that the company's actions comply with labour laws and promote workplace safety. You must pay attention to claims made in the company, such as discrimination and personal injury.
- business practices: as an operations manager, you pay attention to risks arising from operational risks. Examples include customer injuries, unfair competition and misleading product information.
working as an operational risk manager
Working as an operational risk manager requires industry-specific knowledge to understand the standards. Here are the daily work activities of an operational risk manager:
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operational risk manager job description
Some of the daily duties of an operational risk manager include:
- analysing operational risks in the company: as an operational risk manager, you identify all potential risks from business operations. You check every department in the company, from human resources to accounting and other operations, to review the risks.
- monitoring changes in legislation and company policies: as an operational risk manager, you check for changes in legislation or regulations that could affect business operations. Your job is to ensure the company maintains the best business practices that could impact operational risk management.
- monitoring client exposure: as an operational risk manager, you check client portfolios and company investments. You look out for signs of risk exposure or financial loss. It is also important to review customer accounts occasionally to ensure compliance with company policies.
- participating in strategic planning: as an operational risk manager, you plan activities in the company and find ways to minimise risks. For instance, you assess potential threats and identify new business opportunities.
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work environment
As an operational risk manager, you may work in various settings and industries. In an office setting, you could be reviewing business risks for insurance companies, banks, or financial institutions. However, if you work in industries such as manufacturing or mining, your job may involve inspecting projects and operations, which could require wearing protective equipment. You could also be required to travel to meet clients, attend conferences, or workshops.
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who are your colleagues?
Depending on your employer and the industry you work in, your colleagues might include operations managers, data analysts and finance managers. You might also be working in close proximity to finance analysts, HR administrators and HR managers. Other specialists you work with may include, but not be limited to, office managers, auditors and information systems analysts.
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work schedule
As an operational risk manager, you generally work regular business hours for up to 40 hours a week in a full-time position. Occasionally, you may need to work overtime to fulfil your responsibilities on time and respond to emergencies, which may require working evenings or weekends. Additionally, there are part-time or short-term contract opportunities available.
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job outlook
If you're an operational risk manager, you can progress your career by assuming additional responsibilities within the company. You might consider becoming a risk manager and overseeing risks throughout the entire organisation. With increased experience and expertise, you could eventually transition to a role as an operations manager or finance manager, depending on your personal interests.
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advantages of finding an operational risk manager job through randstad
Finding your operational risk manager job through Randstad provides important advantages such as:
- a wide variety of training and development opportunities
- an experienced contact person to provide help if needed
- a range of opportunities in your area
- get paid weekly or monthly, depending on the job
- temporary and permanent contracts
Want a permanent contract? A temporary job as an operational risk manager is often a stepping stone to an attractive permanent job. Thousands of people earn a permanent contract every year with great employers thanks to a temporary job found through Randstad. What's more, many companies recruit their permanent employees through Randstad too.
education and skills
Some of the educational qualifications of an operational risk manager include:
- educational qualifications: for most companies, the minimum requirement for becoming an operational risk manager is a bachelor's degree in finance and business administration. However, if you don't qualify for a bachelor's degree course, start with a Certificate IV in risk management to learn the basics of managing risks. An advanced diploma in integrated risk management equips you with knowledge in evaluating and reviewing organisational compliance and business continuity.
- work experience: you require extensive experience in risk management and business operations. You can gain experience in entry-level positions like risk analysts and progress to higher roles as you improve your knowledge and expertise.
operational risk manager skills and competencies
Some of the skills of an operational risk manager include:
- knowledge of industry regulations: as an operational risk manager, you uphold the industry standards and regulations. You require extensive knowledge of industry regulations to ensure that the company’s operations comply with industry standards. With your knowledge, you can ensure compliance and reduce the chances of product recalls and fines.
- analytical skills: as an operational risk manager, you require expertise in anticipating and assessing risks. You review the relevant data and draw conclusions from the statistical models you apply. With your analytical skills, you can correctly review and analyse data for decision-making.
- strategic thinking skills: aside from identifying potential risks to the company’s operations, you also work with the upper management to develop strategies for mitigation. Your job is to develop operational strategies to mitigate long-term risks and improve efficiency in operations. Your strategic thinking skills help you identify various opportunities associated with various risks.
- communication skills: as an operational risk manager, you require communication skills to communicate clearly and effectively. Written and verbal communication helps you write effective reports and collaborate with professionals.
- problem-solving skills: as an operational risk manager, you identify risks and find ways to solve the problems. Your problem-solving skills help you find creative strategies to deal with various risks in the company. Problem-solving relies on critical thinking and creativity.
FAQs about working as an operational risk manager
Here, you will find the answers to the most frequently asked questions about the profession of an operational risk manager.
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what are the duties of an operational risk manager?
In your role as an operational risk manager, your main responsibility is to identify and assess potential risks related to the company's operations. To mitigate these risks, you create and implement operational procedures that focus on reducing risks associated with the workforce, as well as the output of services and products. Additionally, you are responsible for creating business continuity plans to manage and address risk areas within the company.
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how much does an operational risk manager earn?
As the operational risk manager, you hold an important position overseeing operational risks for the company. Your yearly salary averages at $117,000. If starting as a junior operations manager, you can expect to earn a yearly salary of $83,000, while experienced operational managers earn over $150,000 annually.
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is operational risk management a good career?
Organisations greatly benefit from incorporating risk management into their planning process, particularly in today's market and economic climate. This has led to an increasing demand for professionals in operational risk management. Pursuing a career as an operational risk manager can be highly rewarding, both financially and in terms of gaining valuable experience. It also provides opportunities for advancement into higher managerial positions within a company.
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how do I become an operational risk manager?
As an operational risk manager, you require business and risk management skills. You can join the profession with a Certificate IV in compliance and risk management. Alternatively, complete an advanced diploma in integrated risk management or work health and safety. This equips you with the right skills to determine risks associated with business operations. Since it is a leadership position, it helps to have a bachelor's degree in business or business management.
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what skills do you need to be an operational risk manager?
As an operational risk manager, it's crucial to possess a thorough understanding of company regulations and analytical skills to identify the risks that come with different operations within the company. Strategic thinking is also essential.
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how do I apply for an operational risk manager vacancy?
Applying for an operational risk manager job is easy: create a Randstad profile and search our job offers for vacancies in your area. Then send us your CV and cover letter. Need help with your application? Check out all our job search tips here.
