Risk Manager: Job Duties, Skills and Salary 2025

What Does a Risk Manager do?

A Risk Manager identifies and assesses potential risks that could affect a company’s safety, security, financial stability, or reputation. They develop and implement policies and procedures to minimize or manage these risks and their impacts on the organization.

Key Duties & Responsibilities

Risk Managers in the Risk Management field handle essential tasks and contribute significantly to achieving team and organizational goals. Here are some of their primary responsibilities:

• Identify and analyze areas of potential risk threatening the assets, earning capacity, or success of organizations.
• Implement measures to control, eliminate, or reduce risk to acceptable levels.
• Develop risk management controls and contingency plans.
• Communicate risk policies and processes to employees across the organization.
• Conduct audits of policy and compliance to standards, including liaison with internal and external auditors.
• Provide support, education, and training to staff to build risk awareness within the organization.
• Prepare risk management and insurance budgets and allocate claim costs and premiums to branches and departments.
• Review any new major contracts or internal business proposals to ensure that all risk issues are addressed.

How to Become a Risk Manager

Launching a career as a Risk Manager requires a specific education. We outline the essential qualifications, skills, and steps to enter this field.

Qualification

• Bachelor’s or Master's degree in Business, Finance, Risk Management, or a related field.
• Professional certification in risk management, such as Certified Risk Manager (CRM) or similar.
• Proven experience in risk management or a related field.
• Strong understanding of the industry’s standards and regulations.

Requirements & Skills

• Excellent analytical and problem-solving skills.
• Strong attention to detail and a high degree of accuracy.
• Ability to think critically and make decisions under pressure.
• Strong communication and interpersonal skills to influence and engage colleagues.
• Advanced knowledge of risk assessment tools, methodologies, and frameworks.
• Ability to understand and analyze complex information and present it simply and accurately.

Risk Manager Salary Guide

Wondering what Risk Managers earn? Explore salary ranges by experience, and career tips to maximize your earning potential.

The average salary for a Risk Manager in the U.S. is approximately $123,720 per year and can vary from entry-level to senior positions. Risk Managers may receive a wide range of benefits.

Risk Manager Salary Career Steps

Level	Experience	Avg. Salary per Year
Veteran	20+ years	$154,650
Senior	11+ years	$136,092
Experienced	6-10 years	$123,720
Mid Level	3-5 years	$111,348
Entry Level	0-2 years	$92,790

How to Advance Your Career

Risk Managers typically start their careers with a bachelor's degree in finance, business administration, economics, accounting, or a related field. Some employers may prefer candidates with additional education or certifications, such as a master's degree in risk management, finance, or business administration, or professional designations such as Certified Risk Manager (CRM) or Chartered Financial Analyst (CFA).

Entry-level positions in risk management may involve roles such as Risk Analyst, Credit Analyst, or Underwriter, where professionals gain practical experience analyzing financial data, assessing risk exposures, and evaluating potential losses. They may also learn about risk modeling, statistical analysis, and regulatory compliance requirements relevant to their industry.

With experience, Risk Managers can advance to leadership roles such as Risk Director, Chief Risk Officer (CRO), or Vice President of Risk Management, where they oversee risk management programs, develop risk strategies, and advise senior management or board members on risk-related matters. Some managers may specialize in specific areas of risk, such as credit risk, market risk, operational risk, or enterprise risk management.

Continued education, staying updated on industry trends and regulations, and building a network of professional contacts are crucial for success in this field. Risk Managers may also participate in professional organizations, attend conferences, and pursue certifications to enhance their knowledge and credibility as risk management professionals.

Typical Work Environment

Risk Managers work in various settings, including banks, financial institutions, insurance companies, investment firms, corporate enterprises, consulting firms, and government agencies. They collaborate closely with senior management, executives, department heads, and other stakeholders to identify, assess, and mitigate risks that could impact the organization's financial stability or strategic objectives.

The work environment for Risk Managers is dynamic and fast-paced, with professionals often analyzing large volumes of data, conducting risk assessments, and developing risk management strategies to protect the organization from potential losses or adverse events. They may use risk management software, financial modeling tools, and statistical techniques to evaluate risk exposures and forecast potential outcomes.

Risk Managers may work on a wide range of risk-related projects, including credit risk analysis, market risk monitoring, compliance reviews, insurance portfolio management, or business continuity planning. They may also collaborate with internal audit teams, regulatory agencies, or external consultants to ensure compliance with laws, regulations, and industry standards.

While standard business hours are common, Risk Managers may need to work evenings, weekends, or overtime to meet project deadlines or address urgent risk issues as they arise. The job requires strong analytical skills, attention to detail, and the ability to communicate complex risk concepts clearly and effectively to diverse audiences.

Overall, being a Risk Manager offers the opportunity to contribute to the financial health and success of organizations, identify opportunities for growth and innovation, and help mitigate potential threats or challenges in today's dynamic and interconnected business environment. It's a rewarding career for those who enjoy problem-solving, strategic thinking, and managing uncertainty.