Risk management is the process of evaluating financial risks associated with a particular project or business decision taken by a particular company and then taking necessary actions to minimize such risks.
Risk management also factors in the elements of forecasting thus predicting any unfortunate incidents which may affect the company in a negative way and taking necessary measures to minimize the impact of such risks on the company’s image and profitability. It is a challenging activity as predicting future and its repercussions is not a cakewalk but at the same time, it’s exciting as it gives your brain a hard time in taking out solutions from hazy questions.
Who is it for?
Risks can be managed well by people who have a knack towards finding loopholes and problems and coming out with various alternate solutions for those problems. It is a perfect career for someone who has a creative bent of mind and who can answer all the questions a business has in financial terms.
Risk managers analyze the current situation of a company and the dynamic environment that envelops it. Then various upcoming policies and social factors are taken into consideration to check if they are helping the project in hand in any way or making it more difficult for the project to elbow its way out.
Is it a good career option?
What makes a role a good career option? The most important aspect of any career prospect is its sustainability- whether the market would need this job function in the future or not. Running a business or a company is a progressive process and people have to make long term business decisions to make things work.
Analyzing the risks which come from futuristic plans can only be done by a risk manager who has expertise in coming up with the alternatives for any unseen event. Risk managers aren’t going anywhere. The constant need for managing risks makes it an “on-demand” role.
Risk management course is different for companies belonging to different sectors as the exposure to risk in every sector is different. The automotive industry may be exposed to a higher risk at all times whereas the woolen garment industry is seasonal and thus has less risk involved than the former. So, there is no standard process of measuring risk and this poses a challenge as a risk manager along with his job will also have to keep a tap on the dynamic environment and the changing scenarios.
Most of the skills learned by the risk managers are “on the job” which might bring in a lot of internal competition but also will be a good area of skill development. To be an efficient and effective risk manager you need to know the whole business inside out- Its customers, its employees, laws that affect the company and so on.
Someone with a strong aptitude and an acumen for problem-solving would be a great fit for being a risk manager. They play the most important role in maintaining the fiscal health of a particular company. They have to use their knowledge on various financial instruments in making the best out of a risky situation hence controlling the intensity of negative impacts. If you comply with the prerequisites of being a risk manager, it is most likely that you will be satisfied with your work.
Every career option has its own set of challenges but you will have to overcome them to emerge victoriously. A career in risk management will keep you on toes by throwing all sorts of challenges but will also make your work dynamic and exciting.