Business professionals who work as risk analysts have varied roles, largely depending on the industry in which they work, and what type of business risk is being evaluated. In addition, the size of the company or organization is a factor in determining the level of responsibility held by risk analysts. A business administration degree is a good first step on this career path. The School of Business at Fairfax University of America, located in Virginia, offers students the opportunity to learn more about becoming a risk analyst.
Considering all the risk factors at work in the economic system, it’s not surprising that risk analysts have a solid place in the world of business. Often associated with the financial and insurance sectors, risk analysts evaluate investment portfolios for these companies and their clients. Examining economic trends, world events, interest rates, inflation, and other factors, they determine whether savings and capital-generating funds are reasonably invested. They must also look at the effects of regulations governing their industry and the costs associated with maintaining compliance.
Risk analysts also may evaluate new customers for their creditworthiness, examining their credit histories, earnings, assets, and other information. They may determine whether customers are qualified for loans and credit cards. In a larger arena, they may evaluate potential vendors, suppliers, or operators of distribution networks to make sure they can cover liability requirements or help determine which candidate is the best choice for a business partnership.
Another type of business risk for analysis involves operational liabilities. These might be related to manufacturing processes, supply chain pressures, natural disasters, or the potential for employee fraud. These types of risk analyses include evaluating contingency plans and determining whether insurance coverage is adequate. Risk analysts also help set prices for insurance policies. In general, these detail-oriented, data-savvy business professionals forecast potential outcomes and make recommendations that impact the spending, investment, and planning of a variety of businesses and their customers.
Impacting a wide variety of enterprises and influencing business decisions, risk analysts work across many industries and economic sectors. While their specific roles may be specialized, there are a few qualities that most share:
Risk analysts are tasked with analyzing data, predicting future behaviors and occurrences, and making decisions that impact their employers, as well as customers and clients. Duties and responsibilities may include:
As technological innovation increases economic activity, risk analysts find the demand for their skills is keeping pace. The U.S. Bureau of Labor Statistics (BLS) projects employment growth at 6 percent from 2020 to 2030. The median annual wage for financial risk analysts in May 2021 was $81,410, with the top 10 percent of these hard-working professionals earning more than $163,640.
With insights and skills gained through earning a business administration degree, risk analysts find work in finance, technical services, management companies, and insurance. They also work to minimize liabilities for manufacturing firms, healthcare enterprises, educational institutions, and government agencies. As risk analysts gain experience in making informed business decisions, they may advance to positions in management, including top executive positions.
Whether you enroll in a Bachelor of Science in Business Administration degree program or want to earn your Master of Business Administration (MBA), Fairfax University of America offers business-driven, comprehensive business administration degree programs. Find out more about our affordability and small class sizes in Virginia. Request information or submit an online application today.