More Information About Risk Management

What should I know when considering a degree in Risk Management ?

Risk management professionals are financial managers responsible for the direct oversight of the company's insurance budget and financial transactions. They ensure that their program avoids monetary loss and incorporates a comprehensive plan to minimize financial risk. This career path requires educational training, experience, and skills. Those who enter this field can expect high compensation and job stability. This type of position requires that the professional be an excellent problem-solver, have higher mathematic skills, and be able to analyze data to forecast the economic challenges ahead.

Required Education

Those seeking positions in risk management are often required to have a degree in finance or business. Specific risk management degrees are also available from several colleges and universities both online and on campus. These courses are typically graduate work toward a master's degree. Entry into these programs requires that a student has knowledge in microeconomics, corporate finance, and practical statistics.

Courses offered by these degree programs involve topics related to applied competencies such as the ability to understand the process of identifying, measuring, and managing risk. Other courses include funding tools, applied risk research and writing, and employee benefits and life insurance. These are meant to prepare the student to hedge financial risk in the corporate market. Risk management courses focus on insurance knowledge and procurement.

Insurance programs are the cornerstone of risk management; protecting the company from environmental, product, and professional liabilities. A risk management professional must understand the role of insurance products in a corporate setting. When a graduate candidate has successfully completed a course of study in risk management the candidate will then be responsible for creating a thesis project. The goal of the thesis project is to prepare the student to demonstrate the skills learned in the coursework by presenting independent research and analysis using statistical and simulation tools.

Career Opportunities

Individuals with advance degrees in risk management and financial administration have a wide variety of careers available to them. Job growth for all financial managers is set to grow at a rate of 13% in the next decade. These jobs are considered competitive due to the skill set and training required. Financial managers encompass a large group of professionals that are highly sought after by companies because they mitigate financial loss and assist an organization in increasing profit margins. Financial managers are not limited to the risk management category. Other financial managers include branch managers at corporate institutions, cash managers, treasurers, and finance officers. All of these professionals oversee a specific area of finance within their business.

Earning Potential

Because the role of the financial manager varies by institution and locale the compensation also varies. On average a financial manager earns between $66,690 and $125,180 annually. The top 10% of financial managers earns more than $145,600. The lowest 10% earn less than $50,290 per year. These figures depend upon the type of organization and the size of the firm. Larger firms tend to have a higher pay scale while smaller and local businesses tend to have a smaller budget. Earning a risk management degree will enhance overall knowledge in the business administration field and lead to salary and benefit advances for many.

Article References

Financial Managers: Bureau of Labor Statistics
http://www.bls.gov/oco/ocos010.htm

St. John’s University: MS in Risk Management
http://new.stjohns.edu/academics/graduate/tobin/srm

Risk Management Association
http://www.rmahq.org/RMA/

What are the leading schools offering programs in Risk Management ?

• Walden University Walden University, accredited by the Higher Learning Commission, offers Ph.D., master's and bachelor's degrees in management and doctoral and master's degrees in psychology, education and health and human services to meet the specific needs of adult learners. Walden University has over 30 years of experience delivering programs from a distance while maintaining its student-centered focus on quality and integrity. ( More Info )
• Boston University - Graduate Programs Boston University was founded in 1839 and is now the fourth largest independent university in the United States. It is a hub of academic and scientific activity. With more than 3,400 faculty members and more than 30,000 students, it is one of the nation's leading research-based universities. ( More Info )
• Kaplan Continuing Education - Business and Finance Certificates Kaplan Continuing Education offers accelerated online career training through certificate education. Students choose from a variety of business and finance options in preparation to pursue a career in various business fields. ( More Info )
• Ashford University Founded in 1918, Ashford University specializes in Teacher Education and Organizational Leadership. Students choose from associate and bachelor degrees in business, psychology, criminal justice, and teaching. The accelerated classes will offer you a swift path to program completion. ( More Info )
• Brandman University Founded in 1958, Brandman University offers a wide range of undergraduate and graduate degrees, certificates, and credentials in education, psychology, and healthcare. ( More Info )