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Key Responsibilities and Required Skills for a Risk Analyst

💰 $75,000 - $125,000

FinanceRisk ManagementAnalyticsCompliance

🎯 Role Definition

A Risk Analyst plays an integral role in safeguarding an organization's assets, reputation, and long-term success. This position is the analytical backbone of the risk management function, responsible for identifying, evaluating, and mitigating a wide spectrum of risks—from financial and operational to strategic and compliance-related. By blending quantitative analysis with qualitative judgment, the Risk Analyst transforms raw data into actionable intelligence, enabling senior leadership to make informed, risk-aware decisions. This is not just a reporting role; it's a forward-looking, strategic partnership that directly impacts the company's resilience and ability to capitalize on opportunities.

📈 Career Progression

Typical Career Path

Entry Point From:

  • Financial Analyst
  • Data Analyst
  • Internal Auditor
  • Compliance Associate

Advancement To:

  • Senior Risk Analyst
  • Risk Manager
  • Director of Risk Management
  • Chief Risk Officer (CRO)

Lateral Moves:

  • Compliance Manager
  • Quantitative Analyst
  • Data Scientist
  • Business Intelligence Manager

Core Responsibilities

Primary Functions

  • Conduct comprehensive risk assessments across various business units to identify potential financial, operational, strategic, and compliance threats.
  • Develop, implement, and maintain robust risk management frameworks, policies, and procedural documentation to ensure enterprise-wide consistency.
  • Monitor and analyze Key Risk Indicators (KRIs) to proactively detect emerging risks and trends before they materialize into significant issues.
  • Perform sophisticated quantitative and statistical analysis, including stress testing, scenario modeling, and sensitivity analysis to quantify potential risk exposures.
  • Create and meticulously maintain a centralized risk register to track all identified risks, associated internal controls, and the status of mitigation action plans.
  • Prepare and present detailed, insightful risk reports and data-driven dashboards for senior management, executive committees, and the Board of Directors.
  • Lead investigations into risk events, control failures, and operational incidents to determine root causes and formulate effective corrective and preventive actions.
  • Collaborate cross-functionally with departments such as Finance, Legal, and Operations to embed a strong risk-aware culture throughout the organization.
  • Evaluate the design, adequacy, and operational effectiveness of internal controls to ensure they are sufficient to mitigate identified risks.
  • Stay current with evolving industry regulations (e.g., SOX, Basel III, GDPR) and assess their potential impact on the company's risk profile and operations.
  • Utilize and configure GRC (Governance, Risk, and Compliance) software to automate risk management processes and improve data integrity.
  • Analyze large and complex datasets to uncover hidden patterns, trends, and anomalies that could be indicative of unmanaged risk or control weaknesses.
  • Perform thorough due diligence and ongoing monitoring of third-party vendors and partners to manage supply chain and reputational risks.
  • Facilitate risk identification workshops and deliver targeted training sessions to promote risk awareness and accountability at all levels of the business.
  • Develop and validate financial models to quantify the potential financial impact of various risk scenarios on the company's balance sheet and P&L.
  • Provide critical analytical support for the company's corporate insurance and risk transfer strategies, helping to optimize coverage and cost.
  • Review and challenge new business initiatives, product launches, and strategic proposals from a risk and control perspective.
  • Act as a key point of contact during internal and external audits, providing necessary documentation, analysis, and explanations for risk-related inquiries.
  • Translate complex risk concepts, analytical findings, and statistical models into clear, concise, and compelling narratives for non-technical stakeholders.
  • Manage and contribute to strategic projects aimed at enhancing the risk management function, including the implementation of new tools, systems, and methodologies.

Secondary Functions

  • Support ad-hoc data requests and exploratory data analysis to answer pressing business questions from leadership.
  • Contribute to the organization's broader data governance strategy and the development of the enterprise data roadmap.
  • Collaborate with IT and business units to translate evolving data and reporting needs into technical engineering requirements.
  • Participate in sprint planning, daily stand-ups, and other agile ceremonies as part of the wider data and analytics team.

Required Skills & Competencies

Hard Skills (Technical)

  • High proficiency in data analysis and querying using SQL.
  • Advanced capabilities in Microsoft Excel, including complex formulas, PivotTables, Power Query, and VBA macros.
  • Experience with data visualization and dashboarding tools such as Tableau or Power BI to create impactful reports.
  • Strong knowledge of statistical analysis, financial modeling, and quantitative techniques.
  • Familiarity with programming languages used in data analysis, such as Python (with libraries like Pandas, NumPy) or R.
  • Understanding of enterprise risk management (ERM) frameworks like COSO or ISO 31000.
  • Experience working with GRC (Governance, Risk, and Compliance) platforms (e.g., Archer, ServiceNow GRC, LogicManager).

Soft Skills

  • Exceptional analytical thinking and critical problem-solving skills with a knack for dissecting complex issues.
  • Superior written and verbal communication skills, with the proven ability to present complex information to diverse audiences.
  • Meticulous attention to detail and an unwavering commitment to accuracy and quality in all deliverables.
  • Strong sense of professional skepticism and the intellectual curiosity to question assumptions and "dig deeper."
  • Excellent organizational and time management abilities, capable of managing multiple priorities in a fast-paced environment.
  • High level of personal integrity, ethics, and discretion when handling sensitive and confidential information.
  • Strong interpersonal skills and the ability to build relationships and collaborate effectively across all levels of the organization.

Education & Experience

Educational Background

Minimum Education:

  • A Bachelor's Degree is required.

Preferred Education:

  • A Master's Degree (e.g., MBA, MS in Finance, MS in Analytics, MS in Risk Management) is highly desirable.
  • Professional certifications such as Financial Risk Manager (FRM), Professional Risk Manager (PRM), or Certified Public Accountant (CPA) are a significant advantage.

Relevant Fields of Study:

  • Finance
  • Economics
  • Statistics
  • Mathematics
  • Business Administration
  • Accounting

Experience Requirements

Typical Experience Range:

  • 2-5 years of direct experience in a risk management, financial analysis, audit, or data analytics role.

Preferred:

  • Experience within a regulated industry such as financial services, insurance, healthcare, or energy is often preferred.
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