Financial Risk Specialist

Your Fit

Income

$106K

Preparation

Considerable

Growth

8.2%

Definition
Your fit with this career
How much they earn
What they do
Job satisfaction
How to become

What is a Financial Risk Specialist?

A Financial Risk Specialist is a professional responsible for identifying and analyzing potential risks that could affect an organization's financial health. They assess and manage risks related to investments, market movements, and financial operations to minimize potential losses and optimize financial performance.

Your test results

Why this fit score?

The fit report shows your areas of fit and misfit with Financial Risk Specialist.

Fit report

Test scores

The scores report summarizes what we learned about you. It shows your results on everything measured in the career test.

Scores report

How much does a Financial Risk Specialist earn

According to the U.S. Bureau of Labor Statistics, typical income (in USD) is...

Bottom 10%	Bottom 25%	Median (average)	Top 25%	Top 10%
$61K per year	$79K per year	$106K per year	$141K per year	$184K per year

Compared to other careers: Median is $58K above the national average.

See income by country/state/province

What does a Financial Risk Specialist do?

Work environment

Financial Risk Specialists typically work in office environments within financial institutions, such as banks, investment firms, insurance companies, or corporate finance departments. Their role involves significant data analysis, often requiring the use of specialized software. They may work as part of a risk management team and interact frequently with other financial professionals.

Quick task list

Identifies and analyzes potential financial risks.
Develops strategies to manage and mitigate risks.
Monitors financial markets and economic trends for potential risk factors.
Prepares risk management reports and presents findings to management.
Ensures compliance with financial regulations and standards.

See full list of tasks with expert relevance ratings

Areas of specialization

Market Risk Analysis: Assessing risks from market fluctuations in assets, currencies, and commodities.
Credit Risk Analysis: Evaluating the risk of loss due to borrowers failing to make payments.
Operational Risk Management: Identifying and mitigating risks arising from internal processes, systems, and people.
Liquidity Risk Management: Ensuring sufficient liquid assets to meet obligations.
Regulatory Risk Compliance: Ensuring adherence to financial laws and regulations.

Description

Financial Risk Specialists play a vital role in safeguarding an organization's financial health. They use their expertise to identify, assess, and develop strategies to manage financial risks. By analyzing market trends, economic reports, and financial data, they predict potential financial losses and advise on how to avoid or mitigate them. Their work is crucial in creating a stable financial environment for their organization.

The occupation demands strong analytical skills and a deep understanding of financial concepts and markets. These professionals need to be adept at using financial analysis tools and software. Additionally, they must stay updated with the latest financial regulations and market trends, as these can significantly impact risk management strategies.

Communication and problem-solving skills are also key, as Financial Risk Specialists often need to explain complex risk scenarios to management and collaborate with other departments to implement risk management solutions. The role can be challenging and demanding but offers the satisfaction of playing a critical part in an organization's financial decision-making process.

Job Satisfaction

Sources of satisfaction

The intellectual challenge of analyzing and predicting financial risks.
The impact of contributing to an organization's financial stability and success.
Opportunities for continuous learning and professional growth.

You might make a good Financial Risk Specialist if you are...

Analytical and detail-oriented, with a strong ability to understand and interpret financial data.
Interested in financial markets and economic trends.
Adept at problem-solving and critical thinking.
Capable of communicating complex concepts clearly and effectively.
Proactive in keeping up with financial regulations and market changes.

Pros:

High demand in various sectors, including finance, insurance, and corporate businesses.
Intellectual stimulation and continuous learning opportunities.
Potential for high earnings and career advancement.

Cons:

Can be a high-pressure role with significant responsibilities.
Requires constant vigilance and adaptation to changing market conditions.
Often involves complex and challenging decision-making processes.

How to become a Financial Risk Specialist

Typical education

This position usually requires a bachelor's degree in finance, economics, statistics, or a related field, which is generally a 4-year program. Some roles may prefer or require advanced degrees or certifications like the Financial Risk Manager (FRM) certification.

High school preparation

Courses:

Mathematics, especially statistics, for developing analytical skills.
Economics to gain insight into market forces and financial systems.
Computer science for understanding data analysis and software tools.

Extra-Curricular Activities:

Joining economics or finance clubs.
Participating in math or business competitions.
Engaging in activities that require strategic thinking and analysis.

Preparation after high school

Pursuing a bachelor's degree in finance, economics, or a related field.
Seeking internships in risk management or financial analysis.
Considering professional certifications like the Financial Risk Manager (FRM) for specialized knowledge.

More resources

Global Association of Risk Professionals (GARP) - Offers the FRM certification and resources.
Risk Management Association (RMA) - Provides education and networking opportunities for risk professionals.
Investopedia: Risk Management - Offers educational articles on various risk management topics.
Coursera – Financial Risk Management Courses - Online courses covering various aspects of financial risk management.

Similar careers

Similarity is based on what people in the careers do, what they know, and what they are called. The process of establishing similarity lists is described in this white paper.