The Qualifications You Need to Make It in Risk Management
January 17, 2018
Never received any training as a risk management or insurance specialist? Don’t worry, all is not lost — in many cases, employees have come to risk management from such areas as finance or accounting, among others. This area of specialization is now on the rise, and opportunities are plenty. So, let’s first go through the skills you need and take it from there.
Proficiency in maths
Risks are calculated in numbers, so you have to really be good with them. Analysis of costs, delays and many other parameters will need to be accounted for and used as the basis for important strategic decisions.
Use of financial analysis
Analytical thinking rooted in understanding your data will play a key role, so finance-related qualifications like a CPA or CFA are always a plus. Use of financial modelling can also give a clearer picture of your forecast and help you communicate your vision to others.
Understanding risks does not make sense without understanding the business to which they are attributed. So, risk managers must be fully engaged with business activities to be able to highlight risks that may be heating up. Understanding strategy and what the business’s actions account for in a wider strategy context will help one take better risk-averse decisions.
Staying calm and organized
Working under conditions that are often volatile, and at times even hostile, you have to stay calm and be organized. You simply need to adopt that focused and collected state of mind — it’s as simple as that! Then you will be able to foresee changes and possible risky situations and respond to them on a timely basis. Organizing your paperwork and making detailed plans are all traits of a well-organized risk manager.
Communication and presentation skills
Soft skills in risk management are just as important. It may sometimes be the case that you‘ll have to communicate hard facts. At these moments you shouldn’t be nervous about being the only voice in the room, because you are the person whose independent analysis the business relies upon. You have to constantly challenge the assumptions any business hypothesis is built upon, in order to make sure everything is considered carefully before any important and costly decisions are made.
Knowledge of relevant software
IT proficiency is a must nowadays, and it’s even more the case when it comes to risk management. Proper use and data entry with attention to the tiniest detail is extremely important, so learn some industry-specific applications before a job interview. As well as that, make sure you have decent proficiency with standard software like Microsoft Excel and Access.