A Risk Manager is an individual controlling the worst impact of losses on the accomplishment of the organization’s goals and managing an organization’s risks.
All business faces several types of risks like economic risk, competition risk, operational risk, reputation risk, financial risk, security and fraud Risk, compliance risk.
Their responsibilities include evaluation, identification, and prioritization of risks followed by economical and coordinated application of resources to control, monitor, minimize, and the impact of unfortunate events or to maximize the achievement of opportunities.
|Advantages of Being a Risk Manager||Disadvantages of Being a Risk Manager|
|Risk managers can make decent money||One will have to work with numbers throughout the day|
|Opportunity to travel a lot||A college degree is mandatory for becoming a risk manager|
|One may work for many different companies||This is a competitive environment|
|One may switch to consulting||One will not create any tangible value|
|Risk management professionals have decent job security||Risk managers work in classical office jobs|
|Risk managers work indoor||Working as a risk manager can be stressful|
Advantages of Being a Risk Manager
Risk managers can make decent money
As per available online surveys, risk managers earn handsome income in their profession. Most risk managers are generating six-figure incomes after they reach upper-middle management.
This is comparatively much more than other numerous professions. Consequently if one is sincere and ambitious, they will eventually get into leading roles of the firm they work for and they will be top grosser in the company.
Therefore, there is huge financial opportunity in this profession of risk management and there is no ceiling to income earned by them. A higher salary translates to affording some luxury like a car, fancy furniture, and home sooner in their life.
Opportunity to travel a lot
Several of us love traveling to different destinations. It adds thrills and is an engaging factor in our profession. And as a risk manager, one will have a good opportunity to travel.
One will mostly be supervising the processes inside your company and especially in big corporations which means traveling a lot and exploring what is happening in several different departments and offices in person.
Therefore by becoming a risk manager one will be able to travel to foreign destinations financed by the respective company. This will not be accounted for in their allowances; they will not be taxed.
If one is working with Multinational Corporation having branches and subsidiaries across the world will further better the travel prospects.
One May work for many different companies
Another advantage that risk managers have is that they may work for many different companies.
Moreover, almost every company having a good size requires risk managers to manage how the company is working and to control potential risks efficiently to mitigate any unpleasant event shortly.
Therefore, being a risk manager, one can select the company which provides the best working environment and allowances and will usually have the freedom of options regarding where they desire to work.
One may switch to consulting
Risk management has specialization which does not mean only working in the banking or industrial sector. One could start their career as a risk manager in these companies and then switch to consulting or may even join consulting from the beginning.
Therefore, a career in risk management has ample flexibility to switch to several other fields they wish to work.
Hence if one is an extroverted person risk management consulting career will be the best choice for them. But if one is an introverted person the back office operation of a company will be best suited.
Risk management professionals have decent job security
A benefit of being in a risk management field is that one has nice job security. Consequently, experienced risk managers are well in demand in the current scenario whereas this sector has an acute shortage of experienced dedicated good people in this field.
It means that one will have a nice career progression and one will have nice job offers if one has nice education and expertise in this profession. Thus one will have an opportunity if they lose their current job.
Risk managers work indoor
Most risk management professionals work indoors in a nice comfortable office properly heated or having air conditioners as per their comfort.
Whereas People of several other professions do not have this comfort and have to work outdoors in extreme weather. This comfortable workplace environment will motivate and increase their morals.
Disadvantages of Being a Risk Manager
One will have to work with numbers throughout the day
A problem with being a risk manager is that they have to work with numbers throughout the day.
Though It appears to be nice for people who indeed have an analytical brain and temperament and nice numerical skills, this is tough for people who don’t have these skill sets.
Therefore, one should develop these skill sets before entering this profession. However, this also makes this profession monotonous.
A college degree is mandatory for becoming a risk manager
One will require several years of education for practicing as a risk manager. Very often, one will need a college degree and certification for entering this field. Though many people have a bachelor’s or master’s degree, many risk managers have to get a Ph.D. in mathematics, statistics, or physics.
As the educational requirements to enter this profession are very high and this translates to spending numerous years in college education.
Consequently one will have to spend huge money on tuition, hostel, certification, and other expenses linked to academics. Therefore, one should plan to secure ample funds or arrange for an education loan.
This is a competitive environment
This profession has excellent people thoroughly educated in the best management colleges. Many have job experience in very nice companies that have sharpened their skill sets. These factors make this field intense competition.
It is very tough to grow in their career path and to even survive in this profession. As several people crave to work in the profession of risk management, they will therefore enter a pretty competitive field.
Though it may appear to be interesting to work with excellent people, it means that one will be competing with those professionals and if they do not have the mental level to do so, it is demoralizing and their chances for growth will be very low.
One will not create any tangible value
A negative of working as a risk manager is that they will usually not make any tangible value.
Consequently, one will analyze the risk exposure of their firm through complicated theories and these theories most often do not only provide one with some key numeric.
Consequently, one will mostly work for several hours simply to obtain these numbers. Though many people who work in the manufacturing sector will experience what they have manufactured when they look at the final product.
Risk managers work in classical office jobs
One has to sit 9 to 5 in a typical office setup doing monotonous work throughout the entire career. While several other professions have a balance of indoor and outdoor, many others have several types of responsibilities.
This classical setup looks thrilling in the initial days but eventually, it will trigger boredom.
A person who has been doing the same work their entire life, will not be able to develop other skill sets. If one gets demoralized they will not be able to switch to other trades.
Working as a risk manager can be stressful
A disadvantage of being a risk manager is that they get exposed to lots of stress.
Very often, risk managers have to deal with demanding circumstances and in case their company enters into a financial crisis, they will usually be the scapegoat who will be blamed for that, even if that may not have been caused by them.
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