With a good education, a career in risk management can be an interesting and lucrative path for those interested in finance and business.
Risk management is the process of establishing the context, identification of potential risks, assessing the potential severity of impacts and then responding to risk factors to minimize the potential overall loss of a company or organization. A risk management program is available to students who have completed a post-secondary degree.
Some colleges and universities offer a bachelor's degree as well as a master's or doctorate in risk management, while other vocational and training schools offer short-term courses. Some of the many universities and colleges offering risk management certificates include Boston University, University of Alberta Extension, Rice University and Stanford University. Some business and insurance companies also provide risk management training to their employees.
Many risk management courses are focused on individual areas of risk, which is typically any business or project where risk is assessed. A bachelor's degree in risk management is designed to identify risks from the ground up to prepare students to the challenge of Enterprise Risk Management. Risk management courses can be divided into various program focuses.
Risk Management Principles and Practices
This is a basic course is based on ISO 31000, which teaches general principles in risk management. The course outline explores the common terms used in risk management, its framework and the whole risk management process. At the end of the course, students must have a solid understanding of ISO 31000; establish, assess, improve and monitor the risk management processes; and participate in a risk management team.
Risk Assessment and Treatment
In this type of risk management program, students will learn the methodical process of assessing risks as well as to apply appropriate controls to manage or avoid such risks. The course also educates students of the legal and regulatory concerns and the certificatory requirements of private organizations or bodies, the cost of implementation to achieve risk prevention, and the operational requirements, constraints and the overall objectives of the organization.
Risk Financing
In a risk financing course, students learn how to obtain funds for any accidental loss of a retained risk. It helps students to determine the optimal strategy to achieve a balance between transferring and retaining risk in an organization. A good risk financing strategy enables a company to absorb its losses without affecting its financial status.
A graduate of a risk management program can pursue one of these risk management careers:
- Actuary
- Insurance sales agent
- Insurance claims
- Insurance underwriter
- Financial manager
- Credit analyst
- Financial risk manager
- Loss control specialist
- Insurance examiner
- Risk management consultant
- Trust officer
- Worker compensation representative
Most of these careers are available to those with a bachelor's degree in risk management or a related course. Individuals who study risk management in a vocational postsecondary risk management school may qualify for these positions after completing the program and if they become a member of the Professional Risk Manager's International Association by passing the Associate PRM certification exam. The PRMIA also facilitates a risk management program for individuals who want to pursue a risk management career.
With a good education, a career in risk management can be an interesting and lucrative path for those interested in finance and business.
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