How do you become a risk manager?

Before assuming any time-tested certifications, dirty your hands in doing real-time transactions, in whatever field you work. In banking parlance, we say that a good banker should know the end to end journey of a voucher. Once you understand the finer nuances of your business, only then you should try to validate your understanding by obtaining internationally accepted skill sets, like FRM/ PRM in the area of banking & Finance, or any other recognized certifications. The reverse order may not yield desired benefits, especially in the shortrun, as that may be akin to getting a Pilot license based on performance on a simulator, without knowing what it takes to actually fly. I am sure some would disagree, but that's my two cents on this topic.

To start in Risk Management you need to Familiarize yourself with the specific risks relevant to the industry you're interested in. Different sectors have unique risk landscapes.Connect with professionals in the field, attend industry events, and join online forums to build a network and gain insights. Seek opportunities for hands-on experience through internships or entry-level positions to apply theoretical knowledge in practical scenarios. The last but most important one is staying up to date.

There is no set way to become a risk manager. I was working as a market analyst in my very first job in commodities and when a risk opportunity appeared in my company, I just put up my hand and got chosen. Some ways to get into a risk management career are as follows 1) Express your interest and apply for the role. It is as simple as that. Most likely, you will get trained. 2) Possess good numeracy, coding and analytical skills. Market risk roles, for example need you to be comfortable with numbers and software. So train yourselves in those areas. 3) Have an interest in financial/commodity markets and have an appreciation of how markets work. 4) Develop your confidence by talking to people. Communication is a key skill.

To excel as a risk manager, one must master the intricate skills of risk assessment and adept management. Proficiency in advanced management and leadership is crucial for successfully overseeing departmental functions across diverse industries. A robust education in risk management, coupled with extensive experience in navigating risks within various companies, is essential for making well-informed decisions aligned with established policies and procedures.

Every organization is exposed to risk. Many don’t have a risk function. A practical way to get into risk is to develop an interest in reducing risk. Maybe you’re the contrarian thinker in your group or you’re one that leads exploring the results of different options. My interest in risk began as a way to challenge group-think and to influence project outcomes. Once your eyes are open to risk you can’t unsee it. Be the person who waves a flag, before there’s need for an alarm. Learn how to communicate for influence and to inspire action. Formalizing your risk skillset is important however, a keen interest in risk: identification, evaluation, communication and organizational influence is a good practical start.

Genuine expertise in risk management is cultivated through meticulous, hands-on experience, with a comprehensive understanding of departmental workflows. Beyond focusing solely on the risk department, gaining insights from procedures across interconnected departments enhances comprehension and provides a macro-level perspective. Attendance at risk management seminars, staying updated on international regulations, and seeking advice from specialists contribute to building a comprehensive and enduring risk management experience.

é importante desenvolver habilidades analíticas fortes, especialmente em análise quantitativa e estatística. Também é útil ter habilidades interpessoais fortes, já que os gerentes de risco muitas vezes precisam colaborar com diferentes departamentos e comunicar efetivamente com partes interessadas em todos os níveis da organiza??o. Geralmente, os gerentes de risco come?am suas carreiras em fun??es relacionadas, como analista financeiro, analista de risco, analista quantitativo, trader ou em outros papéis dentro do setor financeiro. A experiência prática nessas fun??es ajuda a desenvolver uma compreens?o mais profunda dos mercados financeiros e dos diferentes tipos de risco.

Simple way of describing a good risk manager is by considering it as if it's your personal asset, investment or action. The care and judgement we put to make a calculated decision should be applied in professional life as well. One need to own the risk, manage it and mitigate it where possible. Risk may be eliminated completely in all cases but understanding the risk and managing will ensure there is less negative impact of such risk.

In order to become a strong risk manager following Steps are essentials: 1- Planning, developing and timely implementation of risk Strategies. 2-Reviewing documents and practices to identify those risks which can be harmful for business. 3-? Have a strong grip on Risk rating models, valuation tools and strong analytical data skills techniques. 4-? Creating risk management plans and proposals for management in order to mitigate business risks. 5-? Monitoring corporate compliance risk with all applicable legislation. 6-Analyzing key industry and market risk trends. 7- Liaising with other risk officers and team members 8-Presenting key recommendations for risk reduction or control measures for business.

Acquiring practical experience is paramount in complementing theoretical knowledge. Seek opportunities to apply risk management concepts in real-world scenarios, either within your current role or through relevant projects. Collaborate with colleagues on risk-related initiatives or seek out specialized tasks that align with your career aspirations. Additionally, consider internships, volunteer work, or part-time roles in risk-focused organizations to further enhance your practical skills and broaden your exposure to diverse risk management contexts.

Given the dynamic and unpredictable nature of risk management, reliance on fixed lessons can lead to managerial shortcomings. Continuous learning through idea development, leveraging artificial intelligence, and reviewing past decisions fosters adaptability. This approach ensures that risk managers remain well-versed in emerging challenges within this rapidly evolving world and environment.

I agree, on needs to start with getting the technical skills and soft skills in place and get relevant market experience to develop local knowledge, understand precedence’s and work on avoiding on those mistakes

Building strong relationships with regulatory bodies and industry peers has proven essential for proactive risk management and smoother compliance processes. However, viewing risk management solely as a defensive function can be limiting, as it should actively shape strategic decisions, turning compliance into a competitive advantage.

To excel in risk management, hone a blend of technical and soft skills essential for effective task execution. Strengthen your technical prowess by mastering data analysis, statistical modeling, and relevant software applications. Additionally, cultivate industry-specific knowledge to understand unique risk factors and mitigation strategies. Equally important are soft skills such as communication, critical thinking, and problem-solving, which facilitate effective collaboration and decision-making in risk management scenarios. Continuously seek opportunities to develop and refine these skills through practical experience, training programs, and professional development initiatives.

Risk Management is a quantitative field but it is a mix of science and art. Analytics, coding, probabilistic thinking is necessary but at the end of the day if you want to be successful you have to be passionate about communicating with other stakeholders. If you couldn't direct the decision makers in the right time in the right direction, all the complex models or predictions become superfluous.

Acquiring specific certifications in risk management is a multifaceted accomplishment. First, rigorous studies are essential for understanding complex risk management concepts not covered in traditional education or job experience. Second, the certification serves as recognition, boosting the manager's self-confidence and facilitating prompt, confident decision-making. Third, the certification enhances the company's image, instilling confidence in stakeholders about having a certified manager overseeing the department.

Earning certifications from reputable institutions enhances your credibility and visibility within the risk management field. Consider pursuing certifications tailored to your experience level, education, and specialization. Popular options include the Certified Risk Manager (CRM), Certified in Risk and Information Systems Control (CRISC), and Certified Professional in Healthcare Risk Management (CPHRM). These certifications validate your expertise and demonstrate your commitment to professional development, opening doors to advanced career opportunities and industry recognition.

The FRM certification offered by GARP , Global Association of Risk Professionals, is an extensive risk management program covers all the financial risk management curriculum. The FRM Certification is comparable to a Master's degree. From my experience a Financial Engineering M.S. degree provides a solid background to the quantitative topics covered in the exam.

Aspiring risk managers in financial services can excel by obtaining certifications tailored to their field. The Financial Risk Manager (FRM) from GARP and the Professional Risk Manager (PRM) from PRIMA are key choices. FRM delves into risk fundamentals and complexities, while PRM covers quantitative analysis and risk governance. Meeting eligibility criteria and passing exams demonstrate proficiency. However,Practical experience is crucial, providing nuanced insights. Staying updated on industry trends and tech advancements is imperative for addressing evolving challenges. The strategic pursuit of FRM or PRM, combined with practical experience and ongoing development, establishes a robust foundation for success in financial risk management.

Having a certification does not necessarily means you know a lot about Risk Management. There are a lot of Risk environments (Health, IT, legal, economic...) It may help, but it is not a protection. You must continue learning and being aware of your environment and business related situations.

The diverse knowledge and experiences mentioned earlier empower risk managers to acknowledge the continuous need for self-development. Recognizing that more knowledge leads to a deeper understanding prompts ongoing learning and adaptation. Exploring other industries provides unique insights and valuable lessons, enriching the manager's perspective and contributing to effective decision-making within their current industry.

Continuous learning is essential in the ever-evolving landscape of risk management. Stay updated on industry trends, emerging developments, and evolving challenges relevant to your sector and organization. Actively seek out learning opportunities to enhance your skills and knowledge, whether through professional development courses, industry conferences, or networking events. Additionally, foster a culture of knowledge-sharing within your organization to leverage insights from colleagues and subject matter experts. By staying informed and adaptable, you'll be better equipped to navigate dynamic risk environments and meet the evolving needs of stakeholders effectively.

Enhance your communication and leadership skills, crucial for conveying risk information to project teams and stakeholders. Stay updated on project management methodologies and tools, and consider specializing in industries or project types that align with your interests. Continuous learning and professional development are key to succeeding as a Project Risk Manager.

In addition to the basics of risk management in training and studies, it is important to keep your finger on the pulse of the times. On the one hand, this involves industry-specific trends, new tools and instruments and, above all, increasingly the interaction with digitalisation and AI in risk management. Constantly monitoring the industry in terms of lessons learnt, risk management approaches, statistics, studies, etc. requires continuous lifelong learning as a risk manager. The idea that I'll do a course and that's it distinguishes the passionate risk manager at manager level from the wannabe amateur.

Continuous learning is essential for staying abreast of the latest developments and best practices in risk management. Engage in professional development opportunities such as workshops, seminars, webinars, and industry conferences to expand your knowledge and skills. Additionally, pursue advanced education through graduate programs, online courses, or specialized training in areas such as risk analysis, financial modeling, data analytics, or emerging technologies relevant to risk management. By staying curious and committed to lifelong learning, you'll remain well-equipped to navigate evolving risk landscapes and excel in your role as a risk manager.

Remember that risk management isn't just about putting controls in place - it's also about knowing which risks (with the appropriate weighing and balancing of pros/cons) to take. Be the person who can actually say "there is a risk if we do this then this could happen, but the benefit is xxxx". Risk management isn't just risk registers - true risk management inserts itself into the thinking of all decision making in an organisation over time so decisions are made with eyes wide open

While acquiring skills and experience is pivotal for a successful risk management career, it is advisable to have critical decisions reviewed by an independent committee. Seeking input from individuals outside the realm of risk specialists ensures diverse perspectives, and the endorsement of a risk consultant, coupled with management approval, adds an additional layer of thorough decision-making.

With over 8 years of experience as a risk manager in banking and finance and being an associate member of the Chartered Institute of Risk Management Professionals in Nigeria, transitioning into a formal role as a risk manager involves several strategic steps. I obtained relevant educational qualifications in risk management, finance, business administration, or a related field. Many risk managers hold at least a bachelor's degree, while some pursue advanced degrees such as a Master's in Risk Management or an MBA with a focus on risk.

Becoming an effective risk manager is a continuous journey, and learning from failures is an integral part of that journey. Each failure is an opportunity to refine your skills, improve decision-making, and contribute to the overall resilience of the organizations you serve.

Be truly open to consultation and feedback. The best Risk Managers are those who do not simply impose risk management controls in a closed and abrupt way but who educate and inspire others to be thinking of the risks themselves. Building a culture is, I believe, our primary purpose as risk management professionals. Building confidence and capability into the workforce, the systems or the board, to be considering risk, to be suggesting mitigating factors and to be proactive and transparent creates a sustainable approach to risk management. Personally, I think this is the primary role of risk managers and so focus on consultation, inspiring and motivating others and building a sustainable approach to risk.