How to become a Risk Analyst

Overview, Courses, Exam, Colleges, Pathways, Salary

Finance and Accounts


Who is Risk Analyst ?

Risk analysts allow the company to make informed decisions by providing estimates about the potential risk factors and suggest measures to prevent or counter such risks. These individuals apply their financial expertise to monitor regulatory changes and market trends closely so as to understand its impact on the business and thereby prescribe recommendations to safeguard the organization from the same. They provide estimates of potential losses and devise risk mitigation strategies that the organization could incur by identifying and analyzing potential risks that can affect the business status and revenue. There are four major categories for specialization in this field, namely, Credit risk analysts who focus on risks related to lending capital; market risk analysts who are involved in assessing the risks associated with the economy and the market; and operational risk analysts who focus on the risks posed by the organizations business operations and its employees; and regulatory risk analysts who focus on the risks related to the impact of legislative changes on the organization.


Typical day at work

What does Risk Analyst do?

  1. Review the company’s financial documents 
  2. Keep track of all regulatory or market changes, compliance requirements and industry-related developments
  3. Analyse financial documents in relation to the market and economic changes to identify and assess potential risk factors
  4. Predict future trends by analysing the current developments in the field
  5. Aggregate financial data from multiple reliable sources to evaluate the potential outcomes and concerns of the prospective business decisions
  6. Develop risk management strategies to guide business decisions
  7. Communicate the risk management plans and potential risk factors to the senior executives 
  8. Devise contingency plans for the events of emergency 
  9. Evaluate the effectiveness of risk management strategies that have been implemented
  10. Make necessary modifications to the risk mitigation procedures
  11. Generate reports, summaries, and presentations to document the potential risks and mitigation procedures

Abilities and Aptitude needed

What are the skills, abilities & aptitude needed to become Risk Analyst?

Risk analysts should have extensive knowledge about risk management processes in the financial sector and the applicable regulatory policies. They need to be highly detail-oriented in order to extract patterns and trends in the financial data to guide business decisions. They should be able to process massive amounts of financial data and synthesize it into concise meaningful reports for the management or the upper executives of the organization which necessitates excellent critical thinking and data analysis abilities. They should be knowledgeable about the current economic and market trends as well as the legislative changes applicable to the company at all times. They should be self-disciplined and able to work independently as well as in collaboration with a diverse team of professionals. Their communication skills are also important in order to convey complex financial information and its meaningful analysis effectively to the senior executives of the company as well as to liaise with their team. Strong mathematical skills and a working knowledge of the relevant statistical tools and software is crucial for risk analysts for accurate and reliable data analysis. They should be goal-oriented with a solution-focused approach and be skilled at complex problem-solving and project management to excel in this role.


Salary for Risk Analyst?

  • Minimum Monthly Salary: Entry-level Risk Analysts may earn a minimum monthly salary of around INR 25,000 to INR 40,000. These are typically individuals who have recently started their careers in risk analysis and may be responsible for supporting senior analysts or risk management teams.
  • Maximum Monthly Salary: Experienced and highly skilled Risk Analysts with advanced degrees, certifications (such as FRM - Financial Risk Manager), and several years of experience may earn anywhere from INR 60,000 to INR 1,20,000 or more monthly. The salary can vary based on factors such as the size and reputation of the company, the complexity of the risk analysis they conduct, and their level of responsibility within the risk management department.
  • Annual Salary: The annual salary may range from INR 3,00,000 to INR 4,80,000 for entry-level or junior Risk Analysts. As Risk Analysts gain more experience, handle more complex risk assessment tasks, and provide valuable insights to mitigate potential risks, their annual income can increase from approximately INR 7,20,000 to INR 14,40,000 or higher.
  • Highest Paying Jobs and Scope: Risk Analysts who work in industries with a high degree of risk exposure, such as financial services, insurance, or energy, may command higher salaries due to the critical nature of their role in identifying and managing risks. Those who specialise in specific areas of risk analysis, such as credit risk, market risk, operational risk, or cybersecurity risk, may also have better salary prospects.The scope for Risk Analysts in India is promising, especially as businesses across various sectors emphasise risk management to safeguard against potential financial losses and operational disruptions. Risk Analysts can find employment opportunities in banks, financial institutions, insurance companies, multinational corporations, and consulting firms.

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How to become an Risk Analyst?

Entrance Exam

Entrance Exam for Risk Analyst ?

The course needs highly efficient workers and hence you can apply for it after finishing your graduation. Through common entrance examinations, like CAT, MAT, XAT, SNAP, you can be a part of MBA programmes under any reputed college or University that offers a proper 2 year long course. You can also apply for PGDM courses which are as popular.


Which course I can pursue?


Which Industries are open for Risk Analyst?

Risk Analysts can find opportunities in various industries as their expertise is crucial for identifying, assessing, and mitigating risks that organizations face. Here are some of the industries that are open for Risk Analysts:

  • Finance and Banking: Risk Analysts are in demand in banks and financial institutions to assess and manage credit risk, market risk, operational risk, and regulatory compliance.
  • Insurance: Insurance companies hire Risk Analysts to evaluate and manage risks associated with underwriting, claims, and investment activities.
  • Consulting: Risk Analysts may work in consulting firms, providing risk management and advisory services to clients across industries.
  • Healthcare: In the healthcare industry, Risk Analysts play a vital role in identifying risks related to patient safety, medical malpractice, and healthcare compliance.
  • Information Technology (IT): IT companies seek Risk Analysts to address cybersecurity risks, data breaches, and information security vulnerabilities.
  • Energy and Utilities: Energy companies hire Risk Analysts to manage risks associated with energy production, distribution, and environmental impacts.
  • Manufacturing: Manufacturing industries need Risk Analysts to assess operational, supply chain, and product quality risks.
  • Government and Public Sector: Government agencies require Risk Analysts to manage risks related to public programs, policy implementation, and public infrastructure projects.
  • Retail and Consumer Goods: Retail companies and manufacturers seek Risk Analysts to address supply chain management risks and product safety risks.
  • Technology and E-commerce: Risk Analysts are essential in technology companies and e-commerce platforms to manage risks related to digital transactions, data privacy.
  • Real Estate: In the real estate sector, Risk Analysts may work to evaluate risks related to property development, investments, and market fluctuations.
  • Transportation and Logistics: Transportation and logistics companies hire Risk Analysts to manage risks in transportation operations, freight movement, and logistics planning.
  • Hospitality and Tourism: The hospitality and tourism industries require Risk Analysts to address guest safety, property management, and crisis management risks.
  • Pharmaceuticals: Pharmaceutical companies may have Risk Analysts to manage risks associated with drug development, regulatory compliance, and product safety.
  • Non-Profit and NGOs: Non-profit organizations and NGOs often require Risk Analysts to manage their operations and program implementation risks.


Are there internships available for Risk Analyst?

Internships for Risk Analysts offer valuable opportunities for students or recent graduates to gain hands-on experience in risk management and financial analysis. These internships provide exposure to real-world risk assessment, modelling, and mitigation practices within various industries. While the availability of internships may vary based on location, industry, and company size, here are some common types of internships that aspiring Risk Analysts may find:

  • Risk Assessment Intern: This internship involves identifying and evaluating potential risks impacting the organisation's operations, finances, or reputation.
  • Financial Risk Intern: Interns in this role may work on analysing financial risks, such as market risk, credit risk, and liquidity risk, and developing risk mitigation strategies.
  • Data Analysis Intern: This role emphasises working with risk management tools and software to analyse data and trends related to potential risks.
  • Compliance Intern: Interns may work on ensuring the organisation adheres to relevant regulations and best practices in risk management and compliance.
  • Insurance Risk Intern: This internship focuses on assessing insurance risks and assisting with insurance coverage analysis.
  • Operational Risk Intern: Interns may identify and evaluate operational risks and propose risk mitigation measures.
  • Market Risk Intern: Interns may analyse market risks related to investments, currencies, and commodities.
  • Enterprise Risk Management Intern: Interns may assist in implementing enterprise-wide risk management strategies and policies.
  • Cybersecurity Risk Intern: This internship involves assessing cybersecurity risks and assisting in implementing cybersecurity measures.
  • Business Continuity Intern: Interns in this role may work on developing business continuity plans to ensure the organisation can respond to unexpected disruptions.

Career outlook

What does the future look like for Risk Analyst?

The demand for risk analysts is rising with the legislative and regulatory changes that necessitate the companies to skillfully make careful, informed business decisions based on the knowledge of the potential risk factors. It is typically an office-based job with standard business work hours. However, occasional travel shall be expected to attend work meetings. They may be required to extend their work hours on evenings or weekends to adhere to the deadlines. They are majorly employed by financial service firms, insurance companies, mortgage firms, trading firms, risk management consulting firms, investment banks and commercial banks. With ample experience in the field and demonstrated success on the job, they can advance to positions of senior risk manager, chief risk officer, director of risk policy, or vice president of risk management.