Risk management

Risk managers act on behalf of financial services organisations as a front line defence against loss. Their aim is to make sure that companies do not exceed their financial limits, and that they stay within their set business parameters.

What types of risks do graduates manage?

They evaluate a variety of different types of financial risk, including:

• fraud
• market (eg risks arising from interest rate fluctuations)
• credit
• insurance

’Risk managers act as a front line defence against loss.’

• liquidity (eg whether an organisation has sufficient cash flow)
• operational (eg risk of processes breaking down) and
• health and safety.

For instance, in the key area of insurance risk, roles might involve advising insurance organisations on the purchase of insurance or building safeguards to protect the profitability of the business if things go wrong.

Starting out in risk management roles

An industry-relevant degree in business, law, economics or management, for example, is often expected and will provide you with an excellent background understanding.

Many companies also want to see proven experience in the industry (particularly for insurance risk roles), so undertaking an internship or work placement will stand you in good stead.

The most common entry route is to join a rotational graduate scheme, which gives you the opportunity to try out different roles before specialising later on. You’ll usually start off as a member of a small team: tasks vary from meeting clients and surveying sites through to evaluating risks, writing reports and making preventative recommendations. Depending upon your career aspirations, you’ll have the opportunity to study for professional qualifications and specialise in particular areas such as technology or fraud.

'A risk management role will equip you with a broad knowledge of industry processes, putting you in a good position to progress to executive level in other areas.'

A risk management role will equip you with a broad knowledge of industry processes, putting you in a good position to progress to executive level in other areas.

Skills for graduate risk management jobs

Specific technical or numeracy skills are needed for some risk management roles; all roles require excellent interpersonal and communication skills because you’re likely to be working with a wide variety of people from the outset. You need to be confident, diplomatic and flexible with the ability to look two steps ahead at all times. A thick skin, an enquiring mind and attention to detail will also benefit newcomers to this area.