Typically considered only within the context of financial services, analysis of risk can be employed in almost all industries and businesses. Practised effectively, it ensures businesses identify, quantify, control and mitigate all or any risks associated with the industry and products or services in which the business is engaged
Risk analysis classically covers credit, operations, regulatory and market. Increasingly, businesses employ analysts to ensure all risks can be accounted for. In financial services, the risk analyst plays a vital role in ensuring a bank, brokerage, fund or insurer has adequately managed and provisioned for all risks.
These professionals may be employed to assess risk on a case-by-case basis or they may assist in the development and application of models, back testing and audit of risk. In some industries or growth areas, the analyst may be responsible for developing processes and procedures as well as risk-management frameworks.
The work demands a high level of education. Work in financial services will typically require qualification (CFA, ACCA, CIMA) and may demand the ability to develop models in SAS, VBA, Excel or similar. Salaries range from £25,000 to £100,000. Work in capital markets in the City typically pays around £45,000.