The role of a risk manager is central to the successful running of a business, and risk managers are involved in a variety of aspects of business. Here is a look at the role of a risk manager, along with a few types of risks that they may deal with.
The role of a risk manager
Risk managers deal with identifying, measuring, and evaluating different types of risks that can affect a business. They look at what could go wrong, they evaluate the impact of what could go wrong on the business, and they come up with strategies to minimise, eliminate, or transfer the risk. Risk managers need to possess analytical skills, and they must have an eye for detail. They also need to be knowledgeable about the industry they operate in, so that they are able to identify the risks posed to a specific organisation.
Some of the types of risks include:
- Strategic risk
A comprehensive business plan is crucial for running a successful business. However, changes such as technological advances and new competitors in the market can quickly affect a well-thought-out business plan, meaning the company may face a number of risks. This means the strategy will have to change to accommodate these factors. Here is where strategic risk management will play an important role in helping the business adapt and come up with new strategies.
- Compliance risk
Managing compliance risk is all about ensuring that a business complies with all the relevant laws and regulations. This is an important task, because non-compliance in the business environment can have serious consequences, including hefty fines, expensive court cases, bad publicity, and sometimes even jail time for the directors. Because laws and regulations sometimes change, it is crucial that the risk manager is always up to date with the changes and can advise on what the business needs to do to comply fully. This helps to prevent any compliance issues that may affect the business in the future. - Reputational risk
Reputation is an important aspect for any business. Once the reputation of a business is damaged, a loss of revenue will follow. Reputational risk can include lawsuits, negative publicity and criticism about the products or services. Customers will naturally become wary of doing business with a company that has a damaged reputation, and a damaged reputation can also cause employees to leave. This will make it hard to sustain the business.
Also read: The Small Business Guide to Risk Management
How to become a risk manager
Because risk management careers can span across a variety of industries, the opportunities are many for those who want to work in this field. Entry without a specialised qualification may be possible, but will most likely require you to start in an administrative or other junior role, and to study towards a relevant qualification while you gain experience and work your way into a management role.
Here are a few options of courses to consider when planning to go into risk management:
- Risk management short courses
- Business management courses
- A degree in law, finance, or economics
- A qualification in statistics
Risk management courses at Oxbridge Academy
With Oxbridge Academy, you have the opportunity to complete a short learning programme in risk management on a part-time basis from home. This gives you the chance to work and gain relevant practical experience while you study.
The course that we offer is a good option for you if you already have some experience in business management, and you specifically want to enhance your skills in risk management, or if you are completely new to the field, and you want to gain basic skills in risk management. It’s also a good option if you’re running your own business, and you want to learn how to manage risk more effectively.
Other course options you could consider studying with us include the N4 – N6 National Certificates in Business Management, which will give you a good foundation on which to build your career and may open up more opportunities for studying further towards a qualification in risk management.
Ready to start studying towards your career as a risk manager?
Click here to enrol for a risk management skills certificate course with Oxbridge Academy.
The risk job i think it be much better if you understand the acronym for swot analysis in order to protect the image of the company!