what is a risk analyst?
As a risk analyst, your job involves identifying and monitoring risks associated with business decisions. You analyse the risks to the assets, capital, and investments of a company and use statistical analysis and models to evaluate financial data. Your goal is to recommend ways to reduce and control risks in the company while ensuring compliance with regulatory frameworks.
In addition to assessing the company's current situation and anticipating the impact of decisions, you also develop contingency plans. These plans are designed to minimise the negative impact of unfavourable economic conditions, such as changes in government policy or market crashes. Risk analysts work in various business sectors, including banking, finance, mining, and manufacturing.
view vacanciesaverage risk analyst salary
As a risk analyst in New Zealand, you can expect to earn a median salary of $95,000 per year. However, the starting salary for this role can be as low as $85,000 annually and increases with experience. If you become a highly experienced risk analyst, you could earn over $105,000 per year. Your salary as a risk analyst depends on several factors, such as your level of experience, area of specialisation, and the size of the company you work for.
how to boost your salary as a risk analyst
The salary of a risk analyst depends on their experience and qualifications. To earn more, it's essential to have more certifications and qualifications. Additionally, having several years of experience in the industry can lead to a higher salary as it demonstrates expertise.
The size of the company you work for can also impact your earnings. If you work for a big financial institution or company, you're likely to be paid more due to the complexity of tasks and the team you oversee. Smaller companies may not have the resources to offer competitive salaries.
Location also plays a role in determining your earnings. Working in metropolitan areas can lead to better earning prospects compared to smaller cities due to the higher demand for risk analysts. In general, the remuneration package for risk analysts is driven by the demand for their skills.
types of risk analysts
The types of risk analysts depend on the area of specialisation. These include:
- credit risk analysts: as a credit risk analyst, you determine the ability of a client to pay a loan. You work in an investment bank, mortgage firm or insurance company to determine the risk of giving out a loan to a client. You analyse financial data and credit worthiness of clients.
- regulatory risk analyst: as a regulatory risk analyst, you analyse policy or legislation changes and their impact on the company. For instance, you determine the impact that disciplinary actions and fines on loans have on the financial institution's reputation.
- market risk analysts: as a risk analyst, you analyse and review the stock market to check your company's share price. You check the economic trends and financial data to identify the risks to the company's assets and investments.
working as a risk analyst
Working as a risk analyst is an exciting career that involves reviewing markets and stocks. Let’s explore the duties, work environments and schedules of the role.
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risk analyst job description
Some of the daily activities of a risk analyst include:
- evaluating the potential risk to a business: as a risk analyst, you analyse the company data to identify the potential risks. If you work in a financial institution with investment, you identify risks associated with running the business, such as market crashes or inflation. You also quantify the uncertainty to measure its magnitude and impact on financial decisions.
- determining the impact of risks identified: when analysing risks, you determine the departments they could affect. For instance, you analyse specific hazards and potential consequences to understand the predictive results. When determining the impact of the risks, you devise a framework to compute the outcomes for various values.
- recommending how to handle the risks: as a risk analyst, you make recommendations to the decision-makers on whether to accept or decline a risk. For instance, you determine if a lender should approve or deny a loan to a borrower. If operational vulnerabilities are associated with a decision, you explain the risks to the relevant stakeholders.
- finding risk mitigation strategies: as a risk analyst, you help the company mitigate risks in its operations. For example, you recommend ways to reduce cost risks and the business’s ability to stay within the project deadline.
- monitoring projects for risks: as a risk analyst, you monitor projects and investments in the company. Your project review plan involves reassessing risks and analysing performance. You also set aside a reserve budget as a buffer in case predicted risks happen.
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work environment
As a risk analyst, you work in financial institutions or investment companies. That means you spend most of the day in an office environment. You work on a computer, analysing the risks that a company faces. You rarely meet with clients, but you sometimes make presentations to stakeholders. Unless you are attending workshops or conferences, travelling is minimal. Work-from-home opportunities are also available.
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who are your colleagues?
Depending on your employer and the industry you work in, your colleagues might include financial advisors, credit officers and financial planners. You might also be working in close proximity to operations managers and data analysts, as well as other specialists that could include, but not be limited to, information analysts, consultants and financial analysts.
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work schedule
The typical work schedule of a risk analyst is between 35 and 40 hours a week. In a full-time position, you work the regular 9 am to 5 pm work schedule. You also work a few evenings or occasional weekends when you have additional work. Additionally, risk analysts may work part-time or in contract positions.
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job outlook
As a risk analyst, you start in an entry-level support position associated with learning company-specific risk mitigation procedures. When you start as a junior risk analyst, you work your way up to a senior risk analyst position. As you gain experience, you earn a promotion to become a risk manager or a chief risk officer.
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advantages of finding a risk analyst job through randstad
Finding your risk analyst 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 a risk analyst 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
You require educational qualifications and experience to succeed as a risk analyst. Some of the academic requirements include:
- bachelor’s degree: you can become an entry-level risk analyst by pursuing a bachelor’s degree. Complete an undergraduate in commerce or financial management. Other related fields include computer science, statistics and mathematics. The courses equip you with analytical, statistical modelling and data analysis skills. Alternatively, complete a graduate degree in an analytical discipline or a technical field. For instance, complete a master's in financial markets and risk management.
- work experience: to work as a risk analyst requires extensive experience. Some companies require a minimum of five years of work experience in a relevant field. You can start with entry-level jobs in financial services, insurance companies or junior risk analysis roles.
risk analyst skills and competencies
Some of the skills and qualities of a risk analyst include:
- analytical skills: as a risk analyst, you spend considerable time analysing large data collections. For instance, you review market trends and investment portfolios. You also research financial data to determine creditworthiness and evaluate other risks. Your analytical skills help you analyse large volumes of data using statistical models to make the right conclusions.
- decision-making skills: as a risk analyst, you help financial advisors and financial planners make business and financial decisions on behalf of their clients. You require good decision-making skills to quickly analyse the data from your clients and make a decision.
- communication skills: as a risk analyst, communication skills are valuable. You possess strong written and verbal communication skills, enabling you to communicate clearly with clients. Your ability to explain technical terms in simple language is useful when explaining the risk analysis process to clients or stakeholders.
- project management skills: as a risk analyst, you work on multiple projects and handle various aspects of finance operations. You require project management skills, such as organisation and time management, to ensure that all projects are completed on time.
FAQs about working as a risk analyst
Here, you will find the answers to the most frequently asked questions about the profession of a risk analyst.
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what is the role of a risk analyst?
As a risk analyst, you identify and review the risks facing an organisation that could affect the value of its assets or capital. The data you analyse depends on your area of expertise. For instance, if you conduct a credit risk analysis, you check the borrower's ability to repay the loan, the history of debt repayment and sources of income. You also provide strategies for managing corporate risks.
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how much does a risk analyst earn in New Zealand?
As a risk analyst in New Zealand, your median salary is $95,000 annually. When you are starting, you are likely to earn a lower salary due to your minimal experience and qualifications. The lowest-earning risk analysts earn below $85,000 per year. As your experience increases, your earnings rise to over $105,000 yearly.
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how do I become a risk analyst?
You require a minimum of a bachelor’s degree in a related field like mathematics, computer science, statistics or finance to become a risk analyst. A graduate degree is an added advantage, especially if you complete a technical or master’s degree in financial markets and risk management.
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is risk analyst a good career?
Risk analysis and management is a rewarding career with promising earning potential. Working as a risk analyst involves making difficult decisions by analysing risk-related data and may involve more complex solutions. You require great analytical and problem-solving skills to improve your decisions.
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what skills do risk analysts need?
As a risk analyst, you require strong numeracy and analytical skills. Your statistical skills help you analyse data and make better decisions. You need the ability to explain complex issues clearly. You also require good research skills to find the correct financial data for making decisions.
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how do I apply for a risk analyst vacancy?
Applying for a risk analyst 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.
