Risk management managers’ primary responsibility is to reduce the risk of harm to a company or organization by identifying potential incidents, how they might impact the company, and devising a plan to reduce the risk to an acceptable level. A risk management manager evaluates internal and external risks to a company’s assets, its employees, customers, and stakeholders. He or she also might devise procedures to protect a firm’s reputation from negative impacts.
Jobs in this field might be specialized to certain industries, from corporate to government risk management duties. Generally, a risk management manager assesses the financial, security, and environmental exposure in the organization where he or she is employed. The manager works to identify vulnerabilities in the organization and seeks ways to minimize loss. He or she commonly works with all departments to train and educate management staff on ways to minimize risk to the group.
Information technology risk management managers devise ways to protect the security of classified or personal information. They may work in government or the private sector to develop standards to reduce the risk of a firm’s sensitive information being accessed by competitors. The risk management manager may also be responsible for protecting customer information stored electronically. A government risk management manager might devise ways to guard against classified information falling into the hands of someone who might use it to harm the nation.
Credit risk management managers commonly work in financial institutions. They may be responsible for programs that reduce the number of borrowers who default on loans. They identify sound processes to assess and monitor the likelihood of a loan being repaid according to terms of the transaction. These managers typically evaluate the return versus risk rate of lending money and the overall financial health of the institution.
Often, corporate risk management managers take responsibility for reducing the risk of lawsuits. They may seek adequate insurance policies to cover losses from lawsuits, natural disasters, and other unexpected events. Depending on the type of business, a risk manager might address environmental situations that could have a negative effect on the company, such as global risks from operating a power plant.
Most risk management managers have a background in finances, business management, or insurance. Some jobs may require certification in health and safety procedures that include fire prevention and product safety. Experience with financial or regulatory agencies that set compliance parameters might also be required of someone entering the risk management field.