Operational Risk Analyst Role Career Development and Job Outlook

As an Operational Risk Analyst, you'll play a vital role in identifying and mitigating potential risks that could impact your organization's operations.

The demand for Operational Risk Analysts is on the rise, with a projected growth rate of 10% from 2020 to 2030, much faster than the average for all occupations.

With the increasing complexity of global markets and regulatory requirements, companies are looking for skilled professionals to help them navigate these challenges.

This career path offers a wide range of opportunities for advancement, from specialized roles in areas like credit risk or market risk to leadership positions in risk management or compliance.

To become an operational risk analyst, you'll need a unique blend of skills, including technical knowledge of financial, analytical, and statistical tools. This can include proficiency in Excel, SQL, Python, or other programming languages.

Having a strong understanding of bank regulation and risk categories is also essential for this role. This knowledge will help you make informed decisions and communicate effectively with your team and stakeholders.

Operational risk analysts need to be able to communicate complex ideas through presentations and reports, so strong presentation and reporting skills are a must. This includes the ability to convey risk levels and mitigation strategies in a clear and concise manner.

In addition to technical skills, operational risk analysts need to be able to navigate complex organizational structures and manage multiple tasks simultaneously. This requires strong organizational and time management skills.

Here are some key skills required for an operational risk analyst role:

A degree in finance, accounting, economics, or business is often preferred for this role, but graduates with degrees in other subjects like engineering, math, and computer science can also find roles in operational risk.

The job outlook for operational risk analysts is promising, with the U.S. Bureau of Labor Statistics predicting a 6% growth in employment opportunities between 2020 and 2030.

This growth equates to approximately 41,000 job openings per year, providing a steady stream of opportunities for those interested in this field.

Operational risk analysts working at investment banks in major financial centers can expect to earn six-figure USD salaries, plus bonuses, within a couple of years, making it a lucrative career choice.

Career progression is excellent within operational risk, and getting overseas roles is relatively straightforward due to the universal nature of operational risk.

The job market for risk analysts is looking up. Employment opportunities for risk analysts are predicted to grow by 6% between 2020 and 2030.

This growth translates to a significant number of job openings. The U.S. Bureau of Labor Statistics expects around 41,000 risk analyst job openings per year over the course of the decade.

To become a risk analyst, earning a bachelor's degree is a must. Eighty-seven percent of risk analysts hold at least a bachelor's degree, so it's essential to get a relevant program.

A bachelor's degree in business, information technology, finance, or accounting will give you a competitive edge in the job market and help you get well-paying jobs.

Gaining on-the-job experience is crucial to develop the skills you learned in your degree program. You can start by applying for data analytics jobs and gaining experience in the workplace.

Over 15% of risk analysts hold a master's degree in a field relevant to their work, such as data analytics or information technology. This can help you stand out among competitive applicants and increase your job opportunities.

To get certified, you can apply for the Certified Risk Analyst program offered by the Global Academy of Finance. This program is broken down into five modules and provides preparatory exercises and group sessions to help you get ready for the exam.

If you plan to work in the securities industry, you'll need to get a license from the Financial Industry Regulatory Authority (FINRA). Employer sponsorship is required to get this credential.

Operational risk analysts working at investment banks in major financial centers can expect to earn six-figure USD salaries, plus bonuses, within a couple of years.

Compensation varies by industry, with asset management and insurance roles typically offering lower salaries than investment banking.

Career progression is excellent within operational risk, with opportunities to move into senior roles or take on additional responsibilities.

Getting overseas roles is relatively straightforward due to the universal nature of operational risk, making it easier to relocate for career advancement.

As an operational risk analyst, you'll need to have a solid understanding of key concepts and skills to succeed in the role. To get started, focus on developing your analytical skills, as strong analytical skills are crucial for identifying and assessing operational risks.

To add to your resume, consider highlighting skills such as risk management, operational risk, and risk assessments. These skills are essential for operational risk analysts and will give you a competitive edge in the job market.

When it comes to technical skills, proficiency in SQL and SharePoint can be beneficial, as they are commonly used tools in the industry. Additionally, having experience with AML (Anti-Money Laundering) and BSA (Bank Secrecy Act) can be a plus.

To mitigate risks, you'll need to have good judgment and the ability to analyze data. This will help you identify potential risks and develop strategies to mitigate them.

In your career, you can expect to work with various financial institutions, securities, and treasury systems. Familiarity with these systems and processes will be essential for success.

In terms of regulatory requirements, you'll need to be familiar with Sarbanes-Oxley (SOX) and other federal regulations. This will help you ensure that your organization is in compliance with all relevant laws and regulations.

Here are some key skills to focus on for your resume and career:

An operational risk analyst is an expert at predicting the potential consequences of a given action, using data to determine the best course of action. They work on behalf of organizations to identify liabilities and determine the likelihood of a positive outcome.

Operational risk analysts assist businesses in preparing for risky operational events such as product malfunctions or employee fraud, and create contingency plans to manage the impacts of those risks. They also study how changes in internal processes, systems, and people can obstruct the flow of business activities.

Operational risk analysts play a crucial role in minimizing financial losses by monitoring debit card activities for suspicious and fraudulent transactions. They also provide education and support to internal and external risk areas to meet requirements of the operational risk framework and regulatory requirements.

Here are some key responsibilities of an operational risk analyst:

As an Operational Risk Analyst, your duties and responsibilities are multifaceted. You'll be reviewing and investigating fraudulent transactions, such as those involving debit card activities with suspicious or fraudulent transactions.

You'll use advanced judgment and analytic capability to review and/or investigate fraudulent transactions and customer relationships. This involves monitoring debit card activities to minimize financial losses.

One of the key responsibilities of an Operational Risk Analyst is to identify and communicate opportunities for process improvement. This can involve participating in strategic planning meetings and workflow mapping sessions.

You'll also lead process improvement auditing initiatives that result in improved task description documentation and more consistent process compliance. This can have a significant impact on the efficiency and effectiveness of the organization.

Here are some examples of specific responsibilities you might have as an Operational Risk Analyst:

To become an Operational Risk Analyst, you'll need to meet certain qualifications and obtain specific certifications. A bachelor's degree is the minimum requirement to apply for this position, and having a degree in finance, statistics, economics, accounting, or mathematics is also suitable.

Having a postgraduate degree is not mandatory, but it can be beneficial for your career prospects. However, it's worth noting that candidates without a degree can still opt for a career as a Risk Analyst, starting at an administrative level.

To get certified, you'll need to consider licenses like those provided by the Financial Industry Regulatory Authority (FIRA) or certifications like Chartered Financial Analyst (CFA) provided by the CFA institute. The CFA certification requires a bachelor's degree, clearing three exams, and four years of professional experience.

Here are some common certifications and licenses required for an Operational Risk Analyst:

People with degrees in other subjects, such as engineering, math, and computer science, can also find roles within operational risk. A sound understanding of systems and processes used in a specific business unit of a bank will help you acquire operational risk roles with those business units.

An operational risk analyst is an expert at predicting the potential consequences of a company's actions with the data at their disposal. They help businesses prepare for risky operational events such as product malfunctions or employee fraud.

Operational risk analysts work to create contingency plans to manage the impacts of those risks. They use their expertise to determine the best course of action and identify potential liabilities.

Operational risk analysts often work in conjunction with other risk analysts, such as credit risk analysts who study the risks of giving loans to customers that fail to pay. Credit risk analysts typically work for investment or commercial banks, credit card lenders, and rating agencies.

Operational risk analysts can also work with market risk analysts who assess the stock market's influence on a company's share prices. Market risk analysts work for financial institutions and investment companies.

Operational risk analysts' work is closely related to that of regulatory risk analysts, who study how changes in local and global regulations and legislation can affect the stock market and a company's sector.

In fact, operational risk analysts often work in the same industries as these other risk analysts, including the energy industry.

As an operational risk analyst, you'll have a crucial role in helping businesses prepare for and manage potential risks that could impact their operations. Your main goal will be to identify and assess these risks, and develop strategies to mitigate them.

Operational risk analysts work closely with various stakeholders, including internal and external risk areas, to meet regulatory requirements and ensure the company's operational risk framework is effective. They also produce recurring reports to keep stakeholders informed of the company's operational risk.

In this role, you'll be responsible for creating contingency plans to manage the impacts of operational risks, such as product malfunctions or employee fraud. This involves analyzing data and identifying potential risks, as well as developing strategies to prevent or minimize their impact.

Operational risk analysts can work in various industries, including finance, insurance, and energy. They may also work for government agencies or non-profit organizations.

Here are some key responsibilities of an operational risk analyst:

By identifying and mitigating operational risks, you'll be playing a critical role in helping businesses operate safely and efficiently. Your work will help prevent losses and ensure compliance with regulatory requirements.