Online Risk Management Degrees
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Risk managers are hired to help assess the financial and public risk that a company takes when choosing to implement a new system, product, or project. Some risk managers are hired on a case-by-case basis as private consultants. Others work for a single company, which allows them to develop a strong understanding of a company's inner workings, perhaps helping them make better decisions for that company. Most risk managers work for larger corporations, meaning they have higher earnings but more competitive job options. Risk managers are often expected to work long hours.
A primary job of a risk manager is to use hedging techniques to help a country stay as safe from financial risk as possible. Hedging involves high-yield investing in stocks, bonds, real estate, and precious metals in order to ensure financial security. Risk managers must have a solid knowledge of the economy and an understanding of how different economic conditions and decisions affect a company's risk when undertaking a given project. Risk managers make decisions that can have huge financial impacts on a company.
The MBA in risk management is extremely popular amongst employers, who prefer that their employees have specialized graduate training and experience. The typical classes required to earn an MBA in risk management degree may include accounting, business strategies, competitive advantage, interpreting the stock market, international business, financial planning, and insurance policies. Classes are specifically designed to prepare students for the actual risk management work they will be expected to do. The MBA is generally considered an excellent financial investment.
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Learn more about Kaplan University - Business Programs
Career Specializations
Some specializations within the field of risk management include being a risk manager in the public or private sector, risk management adviser, or risk specialist, but in general, risk management professionals have similar goals and utilize similar strategies.
Degree Levels
- Bachelor's Degree: 4 years to complete
- Master's Degree: 2-3 years to complete
- Master of Business Administration in Risk Management: 2-3 years to complete
- PhD Degree: 4-6 years to complete
Education & Certification Requirements
Most risk managers have, at the very least, an MBA, usually with a special concentration in risk management. The skills required of risk managers are very particular, and having completed a degree that is designed to train students specifically for this occupation will help those who are seeking top-paying positions in this career track. To be accepted into a master's degree program, it is generally required that a student have a bachelor's degree in business, and some schools have risk management specialization options at the undergraduate level. Completing internship work or work study that is related to corporate risk management can enhance a student's learning experience significantly.
No company or organization requires that a risk manager have completed any kind of certification course or exam. However, there are many voluntary private certification options in the business world. Some professionals choose to pursue one of these options for their own professional development or as a resume builder, especially when they are considering switching companies. One professional certification option is the CFA, an option for investment professionals that is difficult to earn in that it requires achieving high scores on three difficult tests and proving several years of relevant work experience. The option offered by the Association for Financial Professionals is easier to earn. All certification options have associated fees and, generally, continuing education requirements.
Salary Information
Risk managers, as a type of financial manager, enjoy relatively high salaries. The average annual salary is about $99,330, though most all of these professionals have invested in a master's degree. In addition to high salaries, risk managers occasionally enjoy stock options, vacation, and other corporate benefits. (BLS)
Job Outlook
The employment of risk managers is not expected to grow as fast as most other careers. Because of this, and because of high interest in these high-paying jobs that usually come with significant benefits, competition for risk management positions will be fierce. Master's degrees will significantly enhance a candidate's chances. Any relevant experience can also be helpful. (BLS)
Related Careers
Risk management is a type of business career, but there are many other within this academic field that are very similar. Businessmen and women work for all different kinds of organizations, from for-profit to nonprofit and government. They perform duties that range from financial planning and advertising to managing others and organizing human resources departments. Most business professionals have at least an undergraduate degree in business. A manager is an individual who is responsible for ensuring that the employees of a company are performing their jobs effectively, and provide support as well. Some managers must handle budgeting and scheduling issues, as well as hiring and firing personnel. Still others must act as the public face of a company.
Risk management has a lot to do with assessing and managing a company's budget, so it is not surprising that careers that focus on money are similar. Economists must see the larger picture, keeping an eye on domestic and international economies, and they make predictions about how different markets will be affected by various factors. They are usually responsible for making recommendations to a company or other organization about what the best financial decisions would be for that company, given all the information they have. An individual who works in finance is similar, but financiers usually handle more specific financial dealings within an organization, while economists tend to work on a more theoretical level. Financial officers often help formulate annual budgets and budgets for specific projects. They are also asked to help an organization file tax papers, as well.
A project manager must be able to consider financial risks as well, as they are responsible for planning and implementing individual projects for their company. Project managers usually work for larger corporations and companies, and most of their work is highly collaborative.
