Banking and financial services sector, IT, retail, telecom, infrastructure, real estate firms are all looking into investing seriously on risk managers, increasing the demand for such professionals by at least 30-40 per cent annually.
Talent across skill-sets have being recruited as risk managers, though preference is given to whom, who have formal qualifications in risk management. They are looking for people who can identify key risk areas and understand the processes well, for which a qualification like actuarial science, FRM etc., helps to get recruited.
You may have heard about Global financial crisis in 2007 to 2008, it was mostly due to risk management failure from corporate world to government and regulators.
Risk managers are those who perform risk assessments tests, design strategies & models for risk mitigation and timely communicate to all stake holders in a company. There responsibilities range from presenting the internal audit report to the board of directors to having a say in the functions of the organisation.
Risk managers are involved right from the planning and strategy stage to the final closure of the transaction, ensuring that risk remains well within the manageable level.
Though finance and accounting used to be the priority earlier, now risk managers are also looking at areas like operations, supply chain and procurement.
Risk management has become a high priority agenda for CEOs and acquired a ‘corporate imperative’ status. This is evident from the fact that even non-financial companies have begun to embrace the concept of appointing Chief Risk Officers (CROs). CROs are expected to rigorously question the assumptions underlying the business strategy and validate the same using benchmarking data, competitive data and sector analysis.
A risk manager in India could earn about Rs 25 lakh to Rs 40 lakh per annum after 3 to 10 years’ experience.
According to a new market research report, “Risk Analytics Market by Solutions (ETL Tools, Risk Calculation Engine, and Others), Services (Risk Assessment and Analysis, and Others), Application (Fraud Detection and Prevention, Liquidity Risk Analysis, and Others) – Forecast and Analysis to 2020”, published by Markets and Markets, defines and segments the Risk Analytics Market globally into various segments. The Risk Analytics Market is expected to grow from USD 13.77 Billion in 2015 to USD 26.32 Billion by 2020, at an estimated Compound Annual Growth Rate (CAGR) of 13.84% from 2015 to 2020.