Risk manager

Your key priority as a risk manager will be to identify and assess threats to an organisation. You'll spend time planning how to avoid, reduce or transfer risk and create contingency plans as preparation in case things go wrong.

Areas of risk management

You may work in a variety of sectors and specialise in areas such as:

• business continuity and crisis management
• commodity (buying and selling) risk
• corporate governance
• cybersecurity and IT risk
• enterprise risk
• environmental and climate risk
• financial risk
• fraud and financial crime risk
• legal, contractual and insurance risk
• regulatory, compliance and operational risk
• reputational risk
• supply chain and third-party risk.

What does a risk manager do?

As a risk manager, you'll typically need to:

• plan, design and implement an overall risk management process for the organisation
• evaluate risk and make risk assessments - analysing risks, as well as identifying, describing and estimating the risks that affect the business and comparing estimated risks with established criteria
• help to establish and quantify the organisation's 'risk appetite', i.e. the level of risk they are prepared to accept
• report risk appropriately according to the audience, for example, to the board of directors so they understand the most significant risks, to business heads to ensure they are aware of risks relevant to their division and to individuals who need to understand their individual risk accountability
• undertake corporate governance, involving external risk reporting to stakeholders
• review risk policies regularly to ensure compliance with legislation and conduct policy and compliance audits, liaising with internal and external auditors
• carry out process tasks - for example, purchasing insurance, implementing health and safety measures or creating business continuity plans to limit risks and prepare for the event that a risk materialises
• provide support, education and training to staff to build risk awareness within the organisation.

What salary can I expect as a risk manager?

• A common entry point is as a risk analyst, where you would support risk managers. Salaries for risk analysts usually start at £28,000 to £33,000, rising to £35,000 to £45,000 for risk managers.
• Experienced risk managers typically earn £50,000 to £75,000, depending on their area of risk, sector, experience and level of responsibility.
• Senior risk managers can earn in the region of £75,000 to £100,000. Heads of risk, directors and other senior leaders can earn well over £100,000, particularly in financial services and London-based roles.

Salaries vary considerably depending on factors such as the type of risk you specialise in, sector, employer size and type, level of responsibility, location, qualifications, experience and track record. Specialist expertise in high-demand areas can also command higher salaries.

London salaries, particularly in banking, investment management and other financial services, are often substantially higher than those elsewhere in the UK and can distort national averages. Bonuses and other benefits can also form a significant part of total remuneration in some sectors.

Income figures are intended as a guide only.

Typical hours worked by a risk manager

Working hours are typically 9am to 5pm, Monday to Friday. You can expect to work additional hours at more senior levels.

Part-time work and career breaks are possible and are more likely in larger organisations.

How do you become a risk manager?

Although this area of work is open to all graduates, a degree in one of the following subjects may increase your chances:

• accounting
• engineering
• finance or economics
• IT
• law
• management or business studies
• mathematics
• risk management
• science
• statistics.

Some large companies offer risk management graduate training schemes in areas such as financial, operational, technological and enterprise risk.

Postgraduate qualifications are not essential but may be useful, particularly if your degree is in an unrelated subject. Masters degrees in risk management are available at several universities. Courses cover risk management as a whole or focus on areas such as corporate and financial risk management, health and safety risk management, and risk, crisis, disaster and resilience management.

Search for postgraduate courses in risk management.

If your degree is in a less relevant subject, you could consider taking the Institute of Risk Management (IRM) Level 5 International Certificate in Enterprise Risk Management, which provides an introduction to risk management and might help increase your chances of gaining an entry-level position.

The IRM offers free student membership to anyone studying a risk management degree or postgraduate course. See the IRM website for details of the different levels of membership available.

It's also possible to get into a career in risk by taking an apprenticeship, such as:

• Level 3 Compliance and risk officer apprenticeship
• Level 7 Risk and safety management professional (degree) apprenticeship. Government funding for Level 7 apprenticeships is subject to age and eligibility criteria.

You could also start in an administrative role before working your way up to a risk assistant position and then progressing on to a risk manager role. Employers expect A-levels or equivalent qualifications for entry through this route.

What skills does a risk manager need?

You'll need to have:

• analytical and problem-solving skills - to assess complex information, identify risks and evaluate their potential impact
• commercial awareness and business acumen - to understand how risk affects business objectives, costs, performance and opportunities
• leadership, decision-making skills and sound judgement - to make balanced risk decisions, provide direction and persuasively recommend proportionate actions
• stakeholder management skills - to build strong relationships, coordinate risk activity across teams and engage effectively with senior leaders and specialists
• communication and influencing skills - to explain complex risks clearly, challenge decisions constructively and influence decisions and actions with support from senior stakeholders
• technical and numerical skills - to interpret risk data, assess financial impacts and use relevant risk management tools and systems
• resilience and adaptability - to respond effectively to changing priorities, emerging risks and high-pressure situations.

Risk manager work experience

Employers look for experience or knowledge of risk management. To start building up your experience, consider doing a year's industrial placement as part of your course or look for summer work placements or internships with organisations such as:

• banks
• professional services companies
• large companies in sectors such as manufacturing, pharmaceuticals and transport.

Doing a placement provides you with practical experience and helps you develop a network of contacts that may be useful for future job opportunities.

Experience in a particular industry, such as the financial sector, could also be helpful if it relates to the sector you want to specialise in.

Find out more about the different kinds of work experience and internships that are available.

Who employs risk managers?

Risk management is a fast-growing profession with large graduate employers that are increasingly offering opportunities to train and specialise in this function at graduate-entry level. This is especially true in the banking and capital market sectors, which are employing more people in their risk teams.

Risk managers are employed in the public sector, charities and in private organisations. Some small organisations carry out risk management duties in the finance or operations departments.

Employers of risk managers include:

• central and local government, emergency services and other public sector organisations
• energy and utilities companies
• engineering and construction companies
• financial, auditing and consulting companies that specialise in risk management
• transport, infrastructure and logistics companies.

Look for job vacancies at:

• Airmic
• ALARM (members also receive vacancies via their e-newsletter).
• eFinancialCareers
• FutureMe Insurance Jobs
• Government Risk Profession (Civil Service Careers)

Individual companies may advertise opportunities on their websites. Recruitment agencies such as Barclay Simpson advertise vacancies and you can also search for risk jobs on LinkedIn.

What are the career prospects and opportunities for professional development in risk management?

You're likely to start a career in risk management through a graduate training programme or in a risk technician or analyst role. With experience, you can become a risk manager, with the possibility of further progression into senior roles such as risk director or chief risk officer (CRO). Experienced professionals may move into consultancy or freelance work.

Cybersecurity is a growing area of risk management as organisations become increasingly dependent on technology and online systems. Moving between sectors can broaden your experience and may improve your salary, career prospects and access to employer-supported qualifications.

IRM membership provides access to continuing professional development (CPD) through courses and training events. With sufficient experience and technical competence, you can work towards becoming a Certified Member of the IRM (CMIRM) and use the title Certified Risk Professional. You can also study postgraduate courses in risk management, including distance-learning options, which may be supported by your employer.

Other professional bodies offer sector-specific training and qualifications. For example, completing the Chartered Insurance Institute (CII) Advanced Diploma in Insurance may enable you to apply for Chartered Insurance Risk Manager status, subject to the relevant experience requirements.