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Employers seeking to build a sustainable business must prioritize risk management. Risk managers play a critical role in protecting their employers’ interests by forecasting events and attempting to get ahead of their outcomes. Their expertise is crucial to the success and longevity of any organization.
If you’re interested in a career in risk management, read our article to learn about management careers and their salary outlook.
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What Is Risk Management?
Risk management involves determining the potential risks of an activity and coming up with strategies for avoiding or managing those risks. Risks may be regulatory, financial, reputational, market-based or operational. Risk managers assess and control potential risks to reduce their negative impacts on an organization.
Risk management is a vast field spanning the finance, manufacturing, health, public, construction, legal and security sectors. Risk managers may engage in the following activities:
- Conducting company-wide risk assessments
- Developing strategies to reduce the severity of risks
- Establishing standardized procedures for risk reporting
- Designing and implementing a standard risk management process for the organization
- Training other employees on imminent risks and how to control them
- Preparing budgets to mitigate various risks
Careers in Risk Management
Risk Manager
Average Annual Salary: Approximately $93,100
Required Education: Master’s in risk management and insurance or an MBA degree
Job Description: Risk managers perform in-depth research and analyses to identify and reduce a company’s risks. They prevent or control any occurrence that could affect their organization’s reputation, finances or stability.
Claims Investigator
Median Annual Salary: $72,230
Required Education: A high school diploma or GED certificate
Job Description: Claims investigators review claims made by companies and individuals to insurance companies. They assess the true extent of damage and determine if the claimant is entitled to compensation.
Loss Control Representative
Average Annual Salary: Approximately $66,200
Required Education: Bachelor’s degree in insurance or risk management
Job Description: Loss control representatives conduct on-site assessments of commercial or industrial buildings to determine possible risks of loss and damage before issuing or renewing an insurance policy.
Sales Manager
Median Annual Salary: $130,600
Required Education: Bachelor’s degree in business, marketing or finance
Job Description: Sales managers supervise all operations in the sales department, including setting sales quotas, determining the profitability of new products, monitoring sales statistics and training junior sales agents within the organization.
Insurance Underwriter
Median Annual Salary: $76,230
Required Education: Bachelor’s degree in business, finance or a related field
Job Description: Insurance underwriters evaluate the risks associated with insuring a client to determine the approval or denial of their application. They also set terms and conditions of coverage and determine the appropriate coverage amounts.
Advertising, Promotions or Marketing Manager
Median Annual Salary: $127,830
Required Education: Bachelor’s degree in marketing, finance or business administration
Job Description: Advertising managers raise awareness about a company or product through creative advertising campaigns. Marketing managers identify potential markets for a product, and promotional managers offer incentives to increase sales.
Cost Estimator
Median Annual Salary: $71,200
Required Education: Bachelor’s degree in business, finance or a related field
Job Description: Cost estimators gather and analyze data to determine how much time, labor, materials and money are required to undertake a specific project. Aside from estimating costs, they also devise smart solutions to reduce costs for their clients.
Financial Examiner
Median Annual Salary: $82,210
Required Education: Bachelor’s degree in finance or business
Job Description: Financial examiners review financial records to ensure financial institutions comply with local and federal regulations. They also ensure banks offer non-predatory loans and have enough cash to manage losses.
Financial Analyst
Median Annual Salary: $95,080
Required Education: Bachelor’s degree in business or finance
Job Description: Financial analysts guide their employers in making wise investment decisions that yield substantial profit. They study economic trends and predict the outcome of a business decision. To learn more, see our guide on how to become a financial analyst.
Management Analyst
Median Annual Salary: $95,290
Required Education: Bachelor’s degree in business administration or a related field
Job Description: Management analysts assess the state of an organization and recommend strategies to improve its efficiency and profitability.
Management Executive
Median Annual Salary: $98,100
Required Education: Master’s degree in business administration
Job Description: Management executives design systems for seamless operations, draft general management budgets, approve contracts and supervise junior managers. Management executives periodically report to a board of directors.
Frequently Asked Questions (FAQs) About Risk Management Careers
Does risk management pay well?
Yes, Payscale reports that risk managers in the U.S. make an average salary of $92,800 annually as of 2023. The Bureau of Labor Statistics does not provide salary information for risk managers. However, management analysts, advertising managers and financial examiners can expect respective job growth rates of 11%, 10% and 21% from 2021 to 2031.
Is risk management a stable career?
Yes, risk management offers a stable career path. The need for risk management professionals exists in various industries. Professionals can stay competitive by continuing to develop their skills to stay competitive.
Are risk managers in demand?
Yes. Although the BLS does not list the job outlook for risk managers, according to the Global Association of Risk Professionals (GARP), there is demand for financial, non-financial, operational and information technology risk managers. The GARP also foresees potential demand for cyber risk managers.
