Risk analyst: Career path and key responsibilities

Risk analysis is an important element in business decision-making processes, as it offers data-based insight into the possible consequences of an action. By identifying liabilities, a risk analyst can predict the likelihood of a positive outcome for firms from a wide range of different sources.

Industries that frequently employ risk analysts include the finance, insurance and technology sectors, where interpreting patterns from past events and new data to decide the best course of action going forward are particularly valued. Candidates with the right skills and qualifications have the potential for substantial career growth in this area.

Key responsibilities of a risk analyst

The daily tasks and responsibilities of a risk analyst contribute to organisational success and risk management within a business. They include:

  • Analyse risks to form the basis of sound business decisions.

  • Help an organisation meet its goals.

  • Develop solutions to help minimise the risks identified.

  • Examine and interpret statistical reports.

  • Predict future trends.

  • Implement suitable strategies to counteract negative predictions.

  • Utilise risk assessment software and tools.

  • Depending on the sector:

    • Conduct credit risk analysis

    • Run regulatory risk analytics

    • Perform operational risk analysis

    • Implement financial risk analytics

Essential skills for a successful risk analyst

Being successful in a risk analyst job means seamlessly combining both hard and soft skills, because the role involves working with everyone from fellow analysts and risk managers to non-technical stakeholders. That means communication skills and report writing abilities are just as important as analytical thinking and knowledge of the relevant tools.

Technical skills

  • An ability to deal with financial data

  • Proficiency at analysing market and credit risks

  • Familiarity with risk management software

  • Knowledge of the regulatory landscape

Soft skills

  • Analytical thinking

  • Attention to detail

  • Communication

  • Teamwork

  • Problem solving

It’s useful to have these skills when applying for risk analyst jobs, but they should also be accrued throughout your career. You can nurture them through continued professional development with certifications and online courses.

Some options to consider include:

  • Professional Risk Manager (PRM) certification, which is overseen by the Professional Risk Managers' International Association (PRMIA).

  • Risk Management Professional (RMP), which is offered by the Project Management Institute (PMI) 

  • International Certificate in Enterprise Risk Management, which is accredited by the Institute of Risk Management (IRM)

Career path and growth opportunities for risk analysts

The typical career path for a risk analyst is to start as a junior analyst, before moving to a senior analyst position, then risk manager or chief risk officer. Of course, everyone’s journey is different and there can be additional steps along the way.

Specialising in a particular area, such as financial services, is an effective way to advance your risk analyst career. Credit, market, operational and regulatory disciplines all have their own knowledge and skill sets, making them a definitive route to choose fairly early on.

How to become a risk analyst

Most risk analysts start their careers with a bachelor’s degree in finance, business, economics, mathematics or statistics. Some then continue their education with a relevant postgraduate degree like financial risk management. This can put you ahead of other candidates at interviews, but many employers favour real-life experience in the field.

Building a CV should include a combination of certifications, like the PRM and RMP, and risk management techniques learnt in the workplace. Demonstrating how your skills have evolved from the junior level through to more senior positions will make you a desirable prospect for financial institutions and other businesses looking for risk analysts.

Take a look at our selection of risk analyst jobs at every level and see where the next step on the career ladder might take you.

Meta description: The key steps to take to become a risk analyst, how to advance your career and the responsibilities you’ll have in the role.