How Do You Get a Risk Management Job?
Risk management is an increasingly popular field of employment. The best risk management jobs require training and experience. Knowing where and how to get the skills required will have you on your way to a fulfilling job in risk management in no time!
Risk Management Defined
The insurance industry defines risk as the probability that a negative event or loss may occur. Losses to physical facilities, data and information technologies, employees, and assets can have a huge negative effect on a businessí financial stability. Examples of risks include events like fires, floods, computer system crashes, employee error, and others. Risk management involves identifying sources of risk, assessing their probability, and devising a plan to minimize or eliminate them to keep losses at a minimum.
Because risk management is so important to the smooth running of businesses, people who want to pursue risk management jobs must have qualifications and training in analyzing risks. One source of this training is at educational institutions at the associate, undergraduate, or graduate level. College degrees in actuarial sciences, finance, or business may teach an individual the skills needed to be a risk manager. There are also MBA and other graduate-level degrees available that specifically train for risk management.
A number of different organizations provide certifications or designations that are useful when pursuing risk management jobs. Two that are particularly important are the Chartered Property Casualty Underwriter (CPCU), Certified Risk Manager (CRM), and Associate in Risk Management (ARM) designations, available through the American Institute for Chartered Property Casualty Underwriters. All of these designations require individuals to take a course and pass a series of tests. Pursuing designations is a way to stay up-to-date and show that youíre serious.
Training for Risk Managers
Many risk management jobs also require experience in risk management or a related field. Itís sometimes possible to get an entry-level position in risk management, but there are other ways to get into the field as well. People who have had prior experience as commercial insurance underwriters, claims adjusters, or claims managers at large insurance companies are considered to have appropriate experience. Middle- and upper-level bank managers also have a wide range of skills that can transfer to risk management.
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Finding a Job
Online career websites like CareerBuilder.com and Monster.com list risk management jobs. Jobs on online career sites often are very competitive, so candidates must be patient. It may be easier to get into the field through local contractors who specialize in risk management, especially if you live in a large city, because these firms employ a lot of entry-level personnel. Finally, industry organizations like The Risk Management Association and the Risk and Insurance Management Society will allow you to meet insiders and find out about job openings.
Beginning a new career in risk management may be challenging, but if youíre willing to pursue the right training and experience, youíll find a job in this exciting field. Get started on your new career today!