Probably everyone knows the phrase “He who doesn’t take risks, doesn’t drink champagne.” In business there is no risk - if a company does not take risks, it means it is not doing anything at all. But the risk can result in losses for the company. To assess the degree of risk, you need risk manager.
Risk manager is a young profession, but already quite promising. A risk manager looks for all sorts of risks in a company’s activities, and also assesses the degree of their danger to the company and the expected amount of damage. Based on this information, the risk manager develops recommendations that should help the company reduce the negative consequences of risk.
The scope of risk management (risk management) includes about one hundred types of risks. The most common of them include investment, credit, market, operational, insurance, legal, transport, exchange, competitive, personnel uncertainties and risk of loss business reputation. Is it worth purchasing certain shares or securities? Which candidate should I choose for a key position in the company? The risk manager will answer these questions.
The services of risk managers are in demand in various fields business, but The insurance and investment banking industries need risk managers the most. Given the instability of our economy, companies constantly have to deal with uncertainty in their activities, and uncertainty is risk. IN small companies risk assessment is usually carried out by management, but large companies Often a professional look is needed, and this is where a risk manager comes to the rescue.
Since a risk manager is a young profession, it can only be obtained at a couple of leading financial and economic universities. Therefore, people with other education, usually economic and technical, often become risk managers. Why is this so? Because this profession is usually required high demands . A risk manager must understand not only risk management as such, but also economics (micro and macro), banking, securities market, accounting.
In addition, knowledge in the field of law and international standards will not hurt financial statements, higher mathematics and mathematical modeling. Plus English language(oral and written) at a high level - without it now you can’t go anywhere. Also, the risk manager must be an experienced PC user, have analytical skills and be ready to work in a fairly intensive mode.
Besides this, a risk manager must be able to defend his opinion. There is no guarantee that the company's management will follow his advice: all decisions must be agreed upon with senior management. Therefore, the risk manager often has to not only assess the risk and develop recommendations, but also defend his point of view and make sure that his recommendations will actually be followed.
Often, future risk managers begin their activities in a related specialty, and then, having gained knowledge and experience, switch to risk management. For example, insurance risk managers often begin their careers at an insurance company. After 2-3 years of practice in assessing various client risks, you can try your hand at risk management. And many risk managers in investment and commercial banks started their careers as credit analysts.
The main problem of this profession is its youth. In many business sectors there is no clear understanding of what risk management actually is. Therefore, assessing the professionalism of a candidate for the position of risk manager is very difficult: everything will be visible only in the process of work. And hiring a risk manager is a risk in itself: there is no guarantee that this person can be relied upon. Therefore, usually one of the requirements for a risk manager is experience in related fields which we have already mentioned: risk assessment corporate clients(2 years or more) or work as a credit analyst for corporate clients (3 years or more).
Risk manager - enough promising profession, despite her youth. But becoming a risk manager is not easy, because this profession requires not only extensive knowledge, but also significant responsibility.
M. Rogacheva, researcher, Department of International
of the University of St. Gallen, Switzerland
The article discusses the essence of the concept of risk management. The novelty of the material lies in the fact that in the scientific literature there is no complete information about what a risk manager does and what tasks are included in his responsibilities. The material may be of interest to company managers, personnel department employees, as well as those who intend to work in the fieldrisk management.
Despite the fact that the risk manager profession is one of the youngest today, it is very popular and highly valued in various areas of modern business. In principle, each of us at some point becomes a risk manager own life, assessing the chances of changing jobs, predicting the expected business negotiations or even just planning your work day. Professional risk managers are busy analyzing the situation, assessing various risks and miscalculations of possible negative consequences every day throughout their working hours. Not only the development, but also the very future of the company largely depends on the work of these same risk management specialists.
Risks in modern business- a dynamic and constantly evolving process. And only those who can effectively control and manage in a changing business environment can win this race. One of the important competitive advantages company in the market is a quick response to all changes, whether they relate to the actions of competitors or legislation government agencies. Prescribing future possible scenarios and determining the boundaries of danger are the main functions that are assigned to a qualified risk manager.
In modern practice, the concept of a risk manager is increasingly being replaced, to whom the official powers of a financial analyst are attributed. Undoubtedly, the risk manager is engaged in financial analysis, but the analysis itself occurs at a slightly different level. Therefore, it is necessary to clearly distinguish which functions are within the competence of the risk manager, and which are the direct responsibilities of the financial analyst.
The risk manager first of all gives economic assessment risks assumed by the company by engaging in insurance, hedging, reserving and limiting. In other words, he is engaged in risk reduction using modern financial techniques and tools. A person in this position identifies possible weak points when studying business processes and, most importantly, assesses the cost of operational risks, informing management about the presence of uncovered risks, as well as their cost. Moreover, another important function of the manager involved in risk calculations is to check the existence and implementation of procedures for reducing operational risks, which is one of the main tasks not only of the risk manager, but also of the company.
About the concept of risk management
First of all, risk management is consistent with concepts such as prudence, assessment, caution and critical analysis in business processes. Thus, a risk manager is a person whose responsibilities include preventing ill-conceived or incorrect business steps, monitoring business processes, especially those related to financial side companies, and audit activities. Risk management is not only a tool for commercial and public organizations, but first of all - guidance for any actions of the organization in the long term or short term. This concept includes the analysis and assessment of not only strengths, but also weaknesses organizations from the point of view of participation in various business processes and interaction with all kinds of business activities.
Risk management is a core part strategic management company and represents the process by which the organization systematically analyzes the risks of each type of activity in order to reduce or avoid losses. The task of risk management is to directly identify and manage risks to maximize the value of the organization. This area activity is a constant and developing process that takes into account the experience of the past and present of the organization and is reflected in forecasts for the future. It is necessary to note the role and importance of integrating risk management into the overall culture of the organization. It must be accepted and approved by management, and also communicated to every employee of the organization.
Risk management protects the organization and enables it to plan and implement long-term activities. At the same time, it serves to improve the decision-making process and strategic planning through the formation of awareness of the structure of business processes. Moreover, by facilitating the efficient use of an organization's capital and resources, sound risk management reduces the degree of uncertainty surrounding critical aspects of a company's operations, protecting property interests and improving its image. There are many ways to achieve the ultimate goals of risk management. Therefore, it is quite difficult to combine or summarize all its directions in one document. However, we should not forget to rely on existing risk management standards to improve the practices against which companies can measure their own performance.
System creation effective management V modern companies taking into account the rapidly changing market environment and business relations is possible only in the direction of organizing risk management. Let us note the positive fact that in practical activities Over the past few years, organizations have been committed to risk management. In this regard, it is necessary to emphasize the role of external and internal factors influencing the nature of emerging risks in the company. These, which determine the organizational basis of risk management, include price volatility, tax omissions, technological innovation and the process of globalization, which has both positive and negative effects. We must not forget about internal factors that also have a significant impact on the organization of risk management in the company, such as risk predisposition, the need for liquidity or unforeseen costs. Note that external and internal factors in the company are interconnected, and this is explained by the fact that various types risks have a direct or indirect relationship with each other.
Today, a fundamental point in companies is the choice of the very form of risk management organization. The most preferable option now is to create a structural unit, department or service in the company that is directly involved in risk management and risky capital investments. This service is usually supervised by either financial director, or the head of the financial and economic department of the company. Unfortunately, we must note that on at the moment In Russia there is still no established demand for services for managing risks and risky investments, especially from small enterprises. But it seems that this will not last long, given the current situation in market relations and the growing role of business in the modern business environment. Large Russian companies have already realized the importance of risk assessment and carry out various financial transactions today taking into account losses financial risks(price, credit or operational), thereby insuring yourself in advance against possible failures.
Profession of risk manager
Just a few decades ago, company managers in Russia did not even know about the existence of the position of risk manager, since similar functions were carried out mainly by insurance business professionals. And only recently the profession of risk manager has taken its well-deserved place on the list of the most popular and sought-after professions. Recent research has shown that today's risk managers are essentially non-experts.
risk management, as they were prepared in general principles management and are not familiar with the specifics of this field of activity. Nevertheless, we can already define the category of people who are rightly called risk management professionals - these are specialists in identifying, analyzing, controlling and monitoring a certain set of types of risks.
In some situations, each of us can be called a risk manager of some sort at some point in time. However, we should not forget that the true position of a risk manager requires special knowledge and competencies in managing credit, pricing or operational risks. Therefore, today a number of high and competent requirements are imposed on the above-mentioned profession. We list only some of the main criteria expected for the position of a highly qualified risk management professional.
This person must not only know, but also be able to apply a wide range of risk management and insurance tools, as well as effectively use the opportunities of the insurance market to create a system of protection for the organization. He is directly involved in creating search intelligence inside and outside the organization to collect and store information about activities that affect risk management. Moreover, he evaluates the effectiveness of the company's risk management program and skillfully manages the department entrusted to him. Achievements in the field of risk management, as well as the effectiveness of the risk management program in the long term, primarily depend on the results of his work activity.
In practice, there are several reasons for creating a risk manager position in a company. Let's identify some of them. Firstly, it is the centralization and coordination of risk management. Secondly, the introduction of an integrated approach to the risk management process. Finally, improving management's awareness of the organization's risk position or activities. These are perhaps the most significant factors influencing the decision to establish new position a professional involved in assessing future risks. The most important qualification components for occupying the position of risk manager, in turn, are such qualities as communication skills, ability to manage, knowledge of accounting and reporting, knowledge of finance, mathematics and statistics, education in the field
risk management.
Let us note not the least role of management, which is responsible for developing overall strategy organization, as well as the corresponding climate and the formation of the basic principles of effective risk management. Thus, the company's management must first identify and assess the risks that can lead to negative consequences and determine the likelihood of adverse situations occurring. As a consequence, the question arises of developing a policy regarding risks that are unacceptable for the organization, and formulating an action strategy in order to minimize these very negative consequences. Next, it is necessary to evaluate the effectiveness of the chosen policy, as well as the risk management program as a whole. Last but not least in this entire process is to determine the meaning and effect of decisions made in risk management on the long-term development of the company.
Finally, let's talk about the role of the risk manager itself. First of all, the risk manager, as a highly qualified specialist, is responsible for the daily implementation of the risk management program and raising the level of awareness of the importance of risk management issues within the organization. He must carry out not only daily monitoring of the state of affairs, but also exchange experience and judgment with other structural units. Moreover, the risk management specialist is responsible for an appropriate process of risk identification and analysis at the earliest stage of a new project, informing senior management. Depending on the size of the organization and the amount of work associated with assessing all kinds of risks, the functions of a risk manager can be assigned to one specialist or a separate department. It seems that most managers and HR specialists would agree that the functions of employees involved in the risk management process must be clearly defined and formulated in order to avoid future mistakes.
And in conclusion...
In modern Russian business the organization of risk management in companies ultimately comes to the fore. It should be noted that today it is becoming common practice to create special financial services in the structure of the organization to implement comprehensive work to identify, identify and assess the cost of risks, as well as further develop specific measures to resolve or reduce the degree of various risks. For further development In risk management, the work on developing a unified risk management methodology or, in other words, a set of methods for organizing business processes, is becoming especially relevant.
Most large Russian companies and corporations already understand the importance of the role of analyzing and assessing the financial risks of modern business processes. Nevertheless, the formation and development of risk management in Russian organizations still largely depends on the availability of appropriate conditions for the development and selection of specialized specialists in this field. To our regret, at the moment in Russia there is no established system for training and retraining of high-level management specialists financial risks, since the profession of risk manager is considered relatively new. Thus, the next question arises about the need for targeted development special program vocational training qualified risk managers responsible modern requirements market economy.
36.6
Official partner of the section
Financial University
under the Government of the Russian Federation
A leading university in the field of training economists, financiers, and lawyers in financial law.
Do you want to become an economist?
Read about choosing a profession, specialties, admission conditions, the learning process and much more in the Economics and Finance section
For friends!
Reference
Risk represents the possible danger of any unfavorable outcome and contains the probabilities and consequences of the occurrence of an unfavorable event. Risk assessment is the process of identifying factors and types of risk and their quantitative assessment. It is an estimate of the likelihood that the return on an investment will differ from what was expected. The risk assessment includes not only unfavorable (returns below expected) but also favorable outcomes (returns above expected). The following types of risk are distinguished: credit, operational, investment, market, legal, insurance, exchange, transport, competitive, risk of loss of business reputation and personnel uncertainties.
Useful articles
Description of activity
The activity of a risk assessment manager is work using knowledge in the field of risk management, banking, the securities market, accounting, fundamentals of law, international standard, statistics, higher mathematics and mathematical modeling. The specialist's activities involve programming and English language skills.
Wages
Moscow average:average for St. Petersburg:
Job responsibilities
The risk assessment manager performs risk analysis for the bank and analysis of bond issuers. Exercises control over the maintenance of limits. Coordinates activities structural divisions risk management bank. Ensures compliance with business unit risk management policies, procedures, and risk management standards. Develops decision-making methodology. Calculates the default level, determines its dynamics and analyzes the reasons for changes in the loan portfolio as a whole and in the context of loan products. Performs risk assessments for new credit products and product groups. Performs analysis of securities and investments on stock market, crisis management.
Risk managers, components of the strategy, conducting research, identification, control different types risks, help to avoid serious economic and reputational losses for companies. Our specialists help you maintain the profitability and efficiency of business processes in any situation. The profession is suitable for those who are interested in mathematics and economics (see choosing a profession based on interest in school subjects).
Brief description
A person working in the field of finance, distinguished by economic literacy and an analytical mind, is called a risk manager. The profession has recently appeared on the service market, but has already gained enormous popularity, because the investment banking and business sectors cannot work effectively without attracting these specialists.
To work related to searching for risks and preventing their consequences, you must have a higher financial and economic education. The profession is young, so today people are going into it financial analysts, financial and economic managers and other specialists who are familiar with first-hand accounting, securities, stock markets, etc.
Risk managers become indispensable employees during periods of unstable economic situations. Their assessments and recommendations help companies avoid major losses. Such specialists easily work with mathematical models, they are excellent analysts who draw up action plans and different scenarios development of the situation, which allows you to fully control the company’s work during unfavorable periods.
Features of the profession
The profession is new, employers require candidates for the vacancy huge amount requirements, because specialists receive a high salary for their work, and the financial and economic indicators of the company depend on their work. They work in the risk management department and have the following responsibilities:
- minimizing financial and other losses of the company in which the specialist works;
- carrying out work to identify threats of financial and other losses;
- searching for sources of risks through audits, analysis of decisions made by senior management, and work with reporting documentation;
- conducting analysis of assigned risks, development and subsequent work with risk maps and other methodological documentation;
- daily monitoring, analysis of the causes of occurrence, recording of risks, organization of the management process;
- performing calculations and testing risk management methods used;
- maintaining records, storing documents in a personal working archive;
- monitoring the implementation of assigned tasks;
- methodological support for employees and senior management.
Working in a company or financial institution, a risk manager initially analyzes activities, after which he identifies risks and assesses their consequences, in particular, calculates losses. Having found a threat, the specialist selects tools and methods that will effectively manage risks. After this, he develops and implements a strategy; at the end, the work is assessed and a report is generated.
Pros and cons
Pros
- The profession is young and promising.
- Specialists are in high demand in the financial and banking sectors, and in the stock market.
- The work of risk managers is very well paid.
- This profession can be chosen by any specialist with education in the financial and economic sphere.
- The work is intellectual, not physical.
- Prospects for career growth, high social status.
- Official employment, salary bonuses.
- Work experience can be gained in any financial organization.
Cons
- Enormous responsibility.
- The working day may be irregular, but only in case of unforeseen situations.
- Only those specialists who have work experience and excellent recommendations apply for a solid salary.
- For 2-3 years after graduation, you have to occupy a non-prestigious position, delving into the specifics of the work.
Important personal qualities
The work of a risk manager is closely related to finance, so a specialist must be distinguished by increased accuracy, strategic thinking, accuracy, perseverance, and the ability to concentrate. He must adequately assess his abilities, be prone to introspection and development, and monotonous work.
Risk manager training
A student after graduation or during his studies must begin to attend seminars, trainings and courses where innovative techniques necessary to work in the field of risk management.
A higher education in finance is the main requirement that employers make of applicants. There are good specialized universities in many regions of Russia; for admission, you most often need to pass the following exams:
- mathematics,
- foreign language,
- Russian language,
- social science.
The list of exams directly depends on the faculty that the applicant chooses. Future students should be interested in the following areas of training:
- "Financial Management";
- “Strategic tax planning and risk management” and others.
EY Business Academy
Two-day training for managers, risk managers, auditors and other specialists working in this field. Curriculum will include theoretical blocks and several practical tasks, the cost of the training is about 40 thousand rubles.
Moscow Business School
The school invites people with at least 2 years of experience in finance and who have graduated from a specialized university. Attending business school for 26 months will provide useful knowledge and experience, necessary for managers and employees of departments specializing in risk management. Lectures are held in the evening.
Risk managers, components of strategies that conduct research, identification, and control of various types of risks help to avoid serious economic and reputational losses for companies. Our specialists help you maintain the profitability and efficiency of business processes in any situation. The profession is suitable for those who are interested in mathematics and economics (see choosing a profession based on interest in school subjects).
Brief description
A person working in the field of finance, distinguished by economic literacy and an analytical mind, is called a risk manager. The profession has recently appeared on the service market, but has already gained enormous popularity, because the investment banking and business sectors cannot work effectively without attracting these specialists.
To work related to searching for risks and preventing their consequences, you must have a higher financial and economic education. The profession is young, so today it is filled with financial analysts, financial and economic managers and other specialists who are familiar with accounting, securities, stock markets, etc. first-hand.
Risk managers become indispensable employees during periods of unstable economic situations. Their assessments and recommendations help companies avoid major losses. Such specialists easily work with mathematical models; they are excellent analysts who draw up an action plan and different scenarios for the development of the situation, which allows them to fully control the company’s work during unfavorable periods.
Features of the profession
The profession is new, employers place a huge number of demands on candidates for vacancies, because specialists receive a high salary for their work, and the financial and economic indicators of the company depend on their work. They work in the risk management department and have the following responsibilities:
- minimizing financial and other losses of the company in which the specialist works;
- carrying out work to identify threats of financial and other losses;
- searching for sources of risks through audits, analysis of decisions made by senior management, and work with reporting documentation;
- conducting analysis of assigned risks, development and subsequent work with risk maps and other methodological documentation;
- daily monitoring, analysis of the causes of occurrence, recording of risks, organization of the management process;
- performing calculations and testing risk management methods used;
- maintaining records, storing documents in a personal working archive;
- monitoring the implementation of assigned tasks;
- methodological support for employees and senior management.
Working in a company or financial institution, a risk manager initially analyzes activities, after which he identifies risks and assesses their consequences, in particular, calculates losses. Having found a threat, the specialist selects tools and methods that will effectively manage risks. After this, he develops and implements a strategy; at the end, the work is assessed and a report is generated.
Pros and cons
Pros
- The profession is young and promising.
- Specialists are in high demand in the financial and banking sectors, and in the stock market.
- The work of risk managers is very well paid.
- This profession can be chosen by any specialist with education in the financial and economic sphere.
- The work is intellectual, not physical.
- Prospects for career growth, high social status.
- Official employment, salary bonuses.
- Work experience can be gained in any financial organization.
Cons
- Enormous responsibility.
- The working day may be irregular, but only in case of unforeseen situations.
- Only those specialists who have work experience and excellent recommendations apply for a solid salary.
- For 2-3 years after graduation, you have to occupy a non-prestigious position, delving into the specifics of the work.
Important personal qualities
The work of a risk manager is closely related to finance, so a specialist must be distinguished by increased accuracy, strategic thinking, accuracy, perseverance, and the ability to concentrate. He must adequately assess his abilities, be prone to introspection and development, and monotonous work.
Risk manager training
A student after graduation or during his studies should begin to attend seminars, trainings and courses that discuss innovative techniques necessary for working in the field of risk management.
A higher education in finance is the main requirement that employers make of applicants. There are good specialized universities in many regions of Russia; for admission, you most often need to pass the following exams:
- mathematics,
- foreign language,
- Russian language,
- social science.
The list of exams directly depends on the faculty that the applicant chooses. Future students should be interested in the following areas of training:
- "Financial Management";
- “Strategic tax planning and risk management” and others.
Moscow Business School
The school invites people with at least 2 years of experience in finance and who have graduated from a specialized university. Attending business school for 26 months will provide useful knowledge and experience necessary for managers and employees of departments specializing in risk management. Lectures are held in the evening.
EY Business Academy
Two-day training for managers, risk managers, auditors and other specialists working in this field. The curriculum will include theoretical blocks and several practical tasks; the cost of the training is about 40 thousand rubles.
Loading...
