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Career as Risk Manager

Last Updated On 06 May, 2020

How to Become a Risk Manager

About Risk Manager

In the uncertain world of business and economics, every organization or company is looking to minimize risk. To do so, companies adopt a number of strategies that can protect them against sudden changes or accidents. A Risk Manager is a professional who helps companies do exactly that. A Risk Manager helps companies implement measures that control the impact of any outcomes that can be damaging to the company, whether it be in terms of financial assets or physical assets.

Risk Managers are often responsible for operations such as the survey of risk areas, analysis, advising companies and overseeing execution of measures to minimize risk etc. Risk Management is generally limited to a certain area of a business but it may be implemented across the whole organization.

The type of risk management that covers the complete organization is termed as Enterprise Risk Management, which covers all areas of risk management including defining risk management policies, setting up of the risk appetite of an organization and framework of risk management etc. Financial Risk Management is another popular stream in this field.

Risk Managers are especially essential for firms that are involved with high-risk operations such as banking, insurance, safety, legal consultants, engineering, survey etc. The duty of a Risk Manager often involves the following primary goals implementation of strategies to mitigate or remove operational risk (i.e. risk arising from faulty operations) and help companies take measures to protect against any unavoidable damages such as natural disasters, market fluctuations etc.

Eligibility to become Risk Manager

The basic requirement for a Risk Manager is graduation. However, depending on the job profile and company, you may also be required to have a postgraduate degree. Generally, graduates from any stream can apply for Risk Management posts. However, graduation must be done in a stream relevant to the job profile.

Students interested in taking up risk management can also take up higher studies in the field after Class 12th. Following are some of the undergraduate courses in Risk Management.

  • BBA in Risk Management

  • BCom in Risk Management

Risk Management courses are also available at the postgraduate level.

  • PGD in Risk Management

  • MBA in Risk Management

  • PGD in Insurance Risk Management

  • International PGD in Risk Management

Certain Certificate courses are also recommended by the Risk Management Association of India (RMAI). These include:

  • Certified Risk and Internal Control Professional (CRICP) offered by the Association of Internal Control Practitioners (AICP)

  • Certificate in Operational Risk Management offered by the Institute of Operational Risk (IOR), UK

  • Courses offered by the Institute of Risk Management (IRM)

Types of Job Roles Risk Manager

Risk Management can either be applied to the entire organization or a certain area of an organization. Some of the job profiles that are part of the Risk Management profession are given below. These are divided as per the area of expertise of a Risk Management professional.

Enterprise Risk Manager: Risk Management across all of the operations of an organization. Since it is holistic in nature, ERM involves all of the areas of specialization in Risk Management.

Financial Risk Manager: Strategies implemented by an organization to minimize risk on its financial assets. These include areas such as Market Risk, Credit Risk, Liquidity Risk etc. FRM is in increasing demand and one of the most profitable sections of Risk Management in India.

Operational Risk Manager: Management of risk or losses generated by a faulty process or its incorrect implementation. Operational Risk Management also includes checking risks by inadequately performing human resource or machinery.

Supply Chain Risk Manager: Identification, assessment and mitigation of risk across the supply chain of an organization. Supply Chain Risk Management may involve key risk management operations related to finance, human resources, brand reputation etc.

Digital Risk Manager: A new-age sector of Risk Management that addresses the risks associated with the use of technology in businesses and organizations. Digital Risk Management encompasses multiple segments of the stream be it financial or operational. Risks associated with Data Privacy, automation etc. are also included under this field. Digital Risk Management professionals make the use of Data Analytics, Machine Learning, Automation, Digitized Monitoring etc. to provide a risk assessment on digital platforms and implement risk mitigation strategies.

Employment Sector/Industry for Risk Manager

Risk Management is not a field that is particular to any sector of industries. Businesses and organizations across all sectors work towards minimizing risk and take measures to control any negative impacts that may arise. However, some sectors feel a much greater need for risk management and some others are required by law and policy to have a risk management policy for their organization. Some of the top recruiting areas for Risk Management professionals include:

  • Financial Institutions

  •  Risk Management Consultancy Firms

  • Manufacturing Companies

  • Cyber Security Firms etc.

Top Recruiting Companies for Risk Management

Given below are some of the top companies that hire risk management professionals in India.

  • SBI Life Insurance

  • PolicyBazaar

  • LIC

  • Bajaj Allianz etc.

Following are some of the popular job positions for Risk Management professionals.

  • Risk Analyst

  • Risk Manager

  • Risk Surveyor

  • Safety Consultant

  • Risk Management Advisor etc.

Planning to choose Risk Manager as your career?

Pay Scale/Salary of Risk Manager

The average salary earned by Risk Managers in India is around Rs. 12 LPA. Entry-level positions in the field can pay from around Rs. 5 - 7 LPA. Given below is the average salary paid to Risk Management professionals in India.


Entry-Level Salary

Mid-Level Salary

Top-Level Salary

Enterprise Risk Manager

Rs. 8 - 9 LPA

Rs. 14 - 15 LPA

Rs. 23 - 25 LPA

Financial Risk Manager

Rs. 5 - 7 LPA

Rs. 20 - 22 LPA

Rs. 30+

Operational Risk Manager

Rs, 5 - 6 LPA

Rs. 18 - 19 LPA

Rs. 25 - 26 LPA

Digital Risk Manager



The salary figures given above are an average based on data collected from Payscale and Glassdoor. The actual salary may vary by the job role and company.

Books & Study Material to Become Risk Manager

Name of the Book

Author / Writer


Decision Quality: Value Creation from Better Business Decisions

Carl Spetzler, Hannah Winter


Principles of Risk Management and Insurance

E. Rejda George, McNamara Michael

Pearson Education

The Flaw of Averages: Why We Underestimate Risk in the Face of Uncertainty

Sam L. Savage, Jeff Danziger

John Wiley & Sons

A Practical Guide to Risk Management

Thomas S. Coleman

Research Foundation of CFA Institute

Bankers' Handbook on Credit Management

Indian Institute of Banking and Finance (IIBF)

Taxmann Publications

Pros of becoming a Risk Manager

  • The job involves extensive planning and is suitable for people with good analytical skills and who like to follow routines.

  • The pay is excellent even from the entry-level. Experienced professionals can afford lavish lifestyles.

  • It is mostly an indoor job.

Cons of becoming a Risk Manager

  • The career requires a significant level of work skill and hence is not easy to get into.

  • Comes with long working hours.

  • Work schedules can be erratic especially in case of emergencies.

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