A risk manager is responsible for managing threats posed to the progress of a business or organization. Specifically, his or her job description calls for protection of company assets, income, employees, reputation and shareholders. The area of expertise required of people in this position often varies depending on the industry. Some companies need risk managers to establish regulatory procedures and manage legal risk, and other companies might need one who specializes in technology and data risk.
Risk managers are responsible for creating risk management protocol that governs how to conduct business while limiting risk. They study the risk and reward of each major organizational undertaking. It is his or her role to identify trouble before it occurs and to relay this information to others within the organization.
The risk assessment data that risk managers gather is reported to individuals working in various facets of an organization. They structure these reports differently depending on the audience. The board of directors might receive general risk assessment data that will ensure that the board members understand the most pressing organizational threats. Company managers receive risk assessment data relevant to the department that they manage. Employees might receive risk assessment data so that they can understand and acknowledge potential safety risks posed by their jobs.
Risk managers are able to shield organizations from serious legal costs through the proper review of company procedures. They make sure that compliance and risk agreements are maintained in every part of the organization. They often conduct their own audits of company policy and regulatory practices to ensure that the enterprise is legally secure. Risk managers are often required to provide training to company managers on how to stay within proper legal boundaries when running their departments.
Larger organizations typically hold insurance policies to protect them from the costs of legal liability. Risk managers are responsible for managing various company insurance policies to ensure that the organization is properly protected with the right amount of insurance. If problems arise, he or she will file claims with the insurance companies.
Risk manager jobs require a certain level of experience and education. Individuals who hold these positions typically have previous experience dealing with liability in the insurance or legal fields. Most risk management jobs require someone with at least a bachelor’s degree. Many risk management positions require at least a Master of Business Administration degree.