Risk Management in the financial world. Risk management is the process of identification, analysis and acceptance or mitigation of uncertainty in investment decisions.

Essentially, risk management occurs when an investor or fund manager analyses and attempts to quantify the potential for losses in an investment and then takes the appropriate action (or inaction) given his investment objectives and risk tolerance.

Risk Management duties and responsibilities of the job.

The duties under a Risk Management job description include the following:

Designing and implementing an overall risk management process for the organisation, which includes an analysis of the financial impact on the company when risks occur.

Performing a risk assessment:

Analysing current risks and identifying potential risks that are affecting the company performing a risk evaluation.

Evaluating the company’s previous handling of risks, and comparing potential risks with criteria set out by the company such as costs and legal requirements.

Establishing the level of risk the company are willing to take preparing risk management and insurance budgets. Risk reporting tailored to the relevant audience.

Educating the board of directors about the most significant risks to the business; ensuring business heads understand the risks that might affect their departments; ensuring individuals understand their own accountability for individual risks).

Explaining the external risk posed by corporate governance to stakeholders. Creating business continuity plans to limit risks. Implementing health and safety measures, and purchasing insurance. Conducting policy and compliance audits, which will include liaising with internal and external auditors. Maintaining records of insurance policies and claims reviewing any new major contracts or internal business proposals.

Building risk awareness amongst staff by providing support and training within the company.

Risk Management job qualifications and requirements:

A degree in the following subjects is not vital but can be included in a job description:

Risk Management Management or Business Studies Finance or Economics Science Statistics Engineering Law Certified Risk Management Professional (CRMP) The CRMP certification is designed for individuals who have a specialized background in risk management.

The certification validates that the individual possesses the foundation level knowledge and experience required to implement and manage a business risk management programme.