Whenever you borrow money as a loan for your needs whether personal or business the CRA- risk analysts analyze and evaluate your credit-worthiness and application. Most CRAs work as financial consultants, for banks, NBFCs and rating agencies like Fitch or Moody’s Investment Services.
They appraise the loan applications for the credit-risk involved and whether the borrower has the means and credit-history to repay the loans as per the contract, on time and if the cash-flows shown, are sufficient to run the loan-risk.
Credit Risk Analyst Responsibilities
The normal day in the credit risk analyst workday involves
- Maintaining and monitoring pre-approval, limits etc. of credit.
- Execution and setting up of audits, control and test groups.
- Undertaking credit analyses, technological and statistical support for such analysis.
- Assessing and evaluating risk-related results, credit risk analyst score, limits and recommendations.
- Creating SQL and SAS software programs running on marketing databases from multiple sources.
Credit Risk Analyst Skills:
To start your CRA career as an Intern you will need to have a diploma or under-graduation in finance, accounting, business administration, economics etc. The next senior-level as an Associate needs a bachelor’s degree and relevant work experience in financial firms or banks. You will also need
- Professional communication and visualization skills to present ideas and data effectively through presentations.
- Good understanding of statistics, mathematics, data analysis and modelling.
- High aptitude for data analysis techniques, technologies and skills in problem-solving.
- Excellent knowledge of financial and problem analysis.
- Capacity to work long hours with dedication.
- Doing a credit risk analyst course helps immensely especially if it is with a reputed training partner like Imarticus Learning.
Career Path and Payouts:
The career path for a credit analyst as he moves up with experience could lead to becoming a CFA-Chartered Financial Analyst or a Senior Bank Credit Officer. According to Payscale, the median pay for a Credit Risk Analyst in the US is 21.16 USD per hour and 63,544 USD per year. The median Credit Analyst starting pay is 19.15 USD per hour and the annual pay is 49,830 USD per year. In India salaries for Credit Risk Analysts, as in May 2019, were in the ranges of 256k to 2m Rs with a bonus of 24k to 255k Rs, a profit sharing option of up to 35k Rs depending on the contract.
Some of the recruiting companies are Societe Generale, Hang Seng Bank, DBS, Capital First Limited, Accenture, Credit Suisse Group among many others.
At the entry-level, in India, with about a year’s experience, the Credit Risk Analyst could earn a total compensation of 550,000 Rs as an Intern. With 1 to 4 years of experience, the total compensation rises to 616,736 Rs as an Associate. Further, with 5 to 9 years the compensation rises to 1,455,000 Rs as VP, MD or CFO.
Based on respondent experience-years a 20.6 per cent of the credit risk analyst respondents were at the Entry Level, 63.2 per cent at the early levels of their career and 16.2 per cent were at the mid-career levels.
CRAs at New Delhi earned the highest with a median of 96.2 per cent higher than the Indian national average. Gurgaon and Mumbai also had better than median payouts. Pune at lesser by 22.5 per cent and Bangalore with 22.2 per cent lesser offered the lowest median salaries.
The CRA assesses and manages risk assessment. A career in this field involves several prerequisites, hard work and a lot of dedication besides an affinity for quantitative and financial analysis.
The main tasks allocated to the CRA are:
• Credit risk and financial analysis.
• Data evaluation and recommendation making to help with decision-making in risk assessment, maintenance and mitigation.
• Monitor and ensure the loan accounts and their credit ratings.
• Process and evaluate credit request terms.
Doing a credit risk analyst course at Imarticus Learning has many advantages. This job is for those who have the dedication and can put in a lot of hard work. At Imarticus the course will help you hone your practical skills in financial learning, your personality and communication skills through effective mentorship and even offers you assured placements on course completion.
Certification is an important measurable factor of your skills and you get ample aid in qualifying at the exams too. If you want to be in this lucrative career with high payouts then doing a course is essential as these techniques are not amenable to self-learning.