Risk managers help organisations identify, analyse, control and monitor the risks that might otherwise prevent them from achieving their objectives.
Every organisation faces a different risk profile. Financial organisations are largely concerned with financial risks, particularly credit and market risk. However, firms in the transport or extraction industries are mainly concerned with safety and environmental risk, health services with patient safety, and manufacturers with the risks to do with their supply chain. All businesses face risks connected with their employees and their actions, for example their exposure to fires, accidents and law suits, and the security of their systems.
A risk manager's duties depend upon the sector, but they generally include:
Risk managers work closely with other professionals including engineers, surveyors, accident liability specialists, internal auditors, accountants, actuaries, financial managers and investment specialists. The work involves reassuring managers and stakeholders, including private investors and shareholders, that every care has been taken to minimise risk to the business, customers or the general public.
Risk managers normally work 9am to 5pm, Monday to Friday. There are some opportunities for part-time and flexible working.
Risk managers are office-based, but may spend time visiting colleagues and clients. Some visits could be to potentially dangerous or industrial locations, including construction sites, oil installations and engineering plants, where risk managers may have to work at heights or in noisy and dusty surroundings. In these situations, they may wear hard hats, high-visibility jackets and safety boots. This work can be physically demanding.
Some sites may affect people with allergies to dust and chemicals.
Risk managers with international organisations may have to travel overseas.
A driving licence may be useful.
Starting salaries may be around £21,000 a year.
Risk managers tend to be employed in large private organisations and the public sector. In smaller organisations, risk management is normally taken on by finance or operations departments.
Employers include insurance companies and brokers, local authorities, NHS trusts, investment banks, engineering and construction firms, charities and commercial businesses.
There are opportunities throughout the UK. The focus on reducing business costs and increasing profitability has led to a large growth in risk management positions. There is keen competition for jobs, although there is a shortage of people with a broad knowledge of risk management.
Vacancies are advertised in national newspapers, professional insurance and health and safety publications, including Post Magazine, Insurance Times and Strategic Risk, and on specialist websites such as that of the Institute of Risk Management (IRM) at www.theirm.org.
Most risk managers are graduates. Although any degree subject is acceptable, graduates in risk management, economics, business studies, law, management, insurance or engineering may have an advantage in gaining a training post. Previous experience in insurance is usually necessary as well.
The minimum requirements for a degree course are usually two A levels/three H grades and five GCSE's/S grades (A-C/1-3), or equivalent qualifications.
School leavers with GCSE's/S grades may be able to join as insurance technicians, claims handlers or risk assistants and work their way up. They can then study for a professional qualification such as the IRM Certificate or International Diploma in Risk Management, which are available by distance learning.
The Diploma enables you to keep your options open with a new choice of qualification.
Training is a combination of practical experience, in-house training and studying for professional qualifications.
The IRM Certificate in Risk Management is a broad, introductory qualification, achievable in less than a year. It leads to IRM Certification (CIRM).
The IRM International Diploma is a postgraduate-level qualification, offering an internationally-recognised risk qualification which is academically demanding, but also gives the practical skills necessary to work in any risk management sector. It leads to IRM Membership (MIRM). Members can choose to work towards Fellowship of the Institute (FIRM) by demonstrating their ongoing commitment to risk management and their contribution to the profession.
To take the IRM Diploma, candidates need:
Risk managers progressing from an insurance background generally work towards the Chartered Insurance Institute (CII) Advanced Diploma, which leads to Associateship of the CII (ACII). People with this qualification can progress to take a Degree in Financial Services (Risk and Insurance Management) through the Institute of Financial Services (IFS).
Professional qualifications can generally be studied in various ways, including by flexible and distance learning. Online support is becoming increasingly common.
As an Oil Drilling Roustabouts and Roughnecks work as part of a small team on offshore oil or gas drilling rigs or production platforms. Roustabouts do unskilled manual labouring jobs on rigs and platforms, and Roughneck is a promotion from roustabout.
Roustabouts do basic tasks to help keep the rig and platform working efficiently and Roughnecks do practical tasks involved in the drilling operation, under the supervision of the driller.
A risk manager should be:
Experienced risk managers may be promoted to more senior roles, handling more complex risks and managing a team. A willingness to work throughout the UK may increase promotion prospects.
There are also opportunities to specialise in a technical field or industry sector.
Self-employment opportunities are limited and are mainly in risk consulting or training.
Overseas opportunities may be available.
Association of Insurance and Risk Managers,
6 Lloyd's Avenue, London EC3N 3AX
Tel: 020 7480 7610
Chartered Insurance Institute (CII),
42-48 High Road, South Woodford,
London E18 2JP
Tel: 020 8989 8464
Financial Services Skills Council,
51 Gresham Street, London EC2V 7HQ
Tel: 0845 257 3772
Institute of Financial Services (IFS), IFS House,
4-9 Burgate Lane, Canterbury, Kent CT1 2XJ
Tel: 01227 818609
The Institute of Risk Management (IRM),
6 Lloyd's Avenue, London EC3N 3AX
Tel: 020 7709 9808
Institution of Occupational Safety and Health (IOSH),
The Grange, Highfield Drive,
Wigston, Leicestershire LE18 1NN
Tel: 0116 257 3100
National Examination Board in
Occupational Safety and Health (NEBOSH),
Dominus Way, Meridian Business Park,
Leicester LE19 1QW
Tel: 0116 263 4700
Additional resources for job seekers and those already in a job.