Risk management has become an essential function across businesses, especially in the commerce sector, which deals with complex financial transactions, market fluctuations, and regulatory changes. Commerce students, with their understanding of business operations, finance, and economic principles, along with the IRM’s ERM qualification (Level 1 and Level 2 atleast) are well-positioned for a variety of roles in risk management. The average salary (as per external recruiting portals) in risk management ranges from INR 5 lacs per annum to INR 1.5 crores per annum. Here are 10 potential careers in risk management for commerce students:
- Risk Management Consultant: As a consultant, you’ll work with different companies to identify their exposure to various risks, devise strategies to manage these risks, and guide the implementation of these risk management strategies.
- Financial Risk Analyst: In this role, you’ll use your understanding of finance to identify and analyze potential risks affecting the financial aspect of an organization. This may involve assessing the risk in investment decisions, liquidity, credit, market and operational risks.
- Insurance Risk Surveyor: As an insurance risk surveyor, your job will involve assessing potential risk factors to determine the cost of insurance premiums for business clients. You might also offer advice on how to reduce or manage risks to minimize insurance claims.
- Compliance Officer: Compliance Officers ensure that an organization abides by external regulations and internal policies. They identify areas of risk in the organization’s operational procedures and ensure they are in compliance with laws and regulations.
- Internal Auditor: As an Internal Auditor, you’ll identify risks to the organization through a thorough examination of financial records, business processes, and internal controls. You will also recommend improvements to enhance the organization’s overall risk management.
- Credit Risk Manager: Credit Risk Managers assess the creditworthiness of potential clients and manage the risk associated with extending credit or lending money. You will analyze market trends, credit data, financial statements, and assess risk in investment decisions.
- Operational Risk Manager: Operational Risk Managers focus on risks that arise from the day-to-day operations of an organization. They work to minimize losses from failed internal processes, systems, or external events that could negatively impact the organization.
- Market Risk Analyst: A Market Risk Analyst identifies potential risks that could affect the performance of financial instruments, portfolios, or investments due to changes in market conditions. They analyze market trends and economic data to advise companies on potential risks and opportunities.
- Portfolio Risk Manager: In this role, you’ll be responsible for managing the risk of investment portfolios. This includes identifying potential risks, developing and implementing risk management strategies, and maintaining an optimal risk-reward balance in the investment portfolio.
- Enterprise Risk Manager: As an Enterprise Risk Manager, you’ll be looking at risk management from a holistic perspective, taking into consideration all types of risks that an organization might face. Your work will include identifying potential risks, implementing risk management plans, and ensuring the company’s risk profile aligns with its business strategy.
In conclusion, commerce students have a wide range of opportunities in the field of risk management. The roles demand a good understanding of financial and business concepts, critical thinking, and analytical skills, which are key strengths honed during a commerce education coupled with the IRM’s Global Enterprise Risk Management qualifications from Level 1 to 5. No matter which path you choose, risk management offers rewarding careers that play a critical role in shaping an organization’s success in today’s dynamic business environment.