A Risk Analyst is a professional who reviews and monitors Key Risk Indicators and prepare analysis report. They advise clients on the risk in their portfolios and analyse and report on compliance data to gain insights on regulatory risk. In this blog post we describe the primary responsibilities and the most in-demand hard and soft skills for Risk Analysts.

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Main Responsibilities of Risk Analyst

The following list describes the typical responsibilities of a Risk Analyst:

Advise

• Advise clients on actions to optimize their total cost of risk.

• Advise clients on the risk in their portfolios.

Analyze

• Analyze financial products booking constructs in trading source systems.

• Analyze interest rate exotic risk profiles and convexities.

• Analyze model inputs and data feeds (outputs) for accuracy.

• Analyze orders and quoting behavior of our electronic execution strategies.

• Analyze the portfolio and respective credit risk strategies to optimize risk and reward.

• Analyze and report on compliance data, and related data to gain insights on regulatory risk.

Apply

Apply new technology to improve risk management processes and reporting systems.

Assist in

• Assist broking team in designing new programs for clients' unmet needs.

• Assist departments in implementing continuous monitoring.

• Assist in implementing regulatory changes in business operations.

• Assist in the development and continual management of governance and risk platforms and tools.

• Assist in the development of actionable reporting, KRIs and KPIs.

• Assist in the implementation, maintenance and administration of a specific compliance program.

• Assist in the maintenance of the Quality Management System by providing feedback.

• Assist in the production, design and support of daily, weekly, and monthly risk reports.

• Assist in various ad-hoc requests.

Build

Build effective working relationships with peers.

Carry out

Carry out timely completion of risk mitigation activities by the vendor.

Collaborate with

• Collaborate to improve reporting processes.

• Collaborate with software developers to develop and maintain risk tools.

• Collaborate with wider team to create banners and landing pages.

Communicate

• Communicate openly and clearly on risk topics.

• Communicate technical concepts to non-technical individuals.

Conduct

• Conduct ad-hoc data analyses.

• Conduct research into areas of perceived elevated or emerging operational risk.

Contribute to

• Contribute to reporting on model risk and business line compliance.

• Contribute to team meetings about departmental strategy - we want to hear you!.

• Contribute to the maintenance of the ongoing model scoring.

Coordinate

• Coordinate and manage due diligence efforts - including Mergers & Acquisition and Vendor assessments.

• Coordinate follow up any required actions requested by the Committee.

Craft

Craft key communications to be delivered to executives and board members.

Create

• Create and maintain data lineage documentation based on updates from model implementation.

• Create and manage the Digital Security Risk Register.

• Create and deliver Presentations to board members.

• Create reporting or export information from MetricStream as needed.

• Create reports showing key risk indicators for auto finance business.

• Create Tableau visualisations required to support regulatory, governance and business requirements.

Deploy

Deploy and maintain tools to assist in detection, prevention, and analysis of security threats.

Develop

• Develop and deploy training tools in financial crime risk analytics to support accountabilities.

• Develop and maintains compliance information for analysis and reporting.

• Develop detailed business requirements, prototyping, and testing support.

• Develop / enhance documentation to align with internal Model Validation standards.

• Develop, implement, and evaluate test strategies with a focus on driving profitability.

• Develop scalable solutions with performance and security in mind.

• Develop strategies, tools, and methodologies to measure, monitor, and report risks.

• Develop via process delivery and reengineering.

Dig

Dig deep into reports to provide commentary and recommendations.

Direct

Direct the work of 4 records management analysts.

Document

• Document APIs and Components for other Developers.

• Document code structures and create unit / regression tests.

• Document, review and update standard operating procedures related to insider fraud processes.

• Document the credit risk requirements for development of systems and products.

• Document tool configurations and write playbooks for incident responders.

Engage

• Engage business groups as well as internal support teams to leverage knowledge and system synergies.

• Engage in securities financing activities in both agency and principal basis.

Enhance

Enhance risk management policies and procedures for IRRBB.

Ensure

• Ensure alignment and appropriate prioritization of efforts across multiple groups within IT.

• Ensure cohesive experience across multiple devices.

• Ensure proper execution of account management strategies through detailed audit protocols.

• Ensure proposed risk ratings are well supported.

• Ensure sales and cost targets are met.

• Ensure that Risk Coordinators within functional groups are assigned, as necessary.

• Ensure the accuracy and timely preparation of reports.

• Ensure timely and accurate reporting of security metrics (KPIs / KRIs).

Escalate

Escalate issues and oversee the remediation of issues.

Establish

Establish and maintain procedure and working documents.

Evaluate

• Evaluate annual RAAS qualitative self-assessment from business and perform gap analysis.

• Evaluate the adequacy and effectiveness of data, document retention, and monitors systems.

• Evaluate Third Party Administrator (TPA) performance, tracks claim costs and adjustment expenses.

Find

Find opportunities to improve service delivery and support process improvement initiatives.

Focus on

Focus on process improvements, streamlining the existing processes and crafting robust new ones.

Forecast

Forecast credit losses applying sensitivity and scenario analysis.

Handle

Handle ad-hoc requests that support risk management.

Help

• Help automate monthly financial reporting processes to improve accuracy and efficiency.

• Help determine business priorities and best sequence for execution of business / group strategy.

• Help improve manual review accuracy and efficiency.

• Help the IT Organization understand the value of IT Governance.

Identify

• Identify analyze, and track relevant internal risk events, including losses, gains, and saves.

• Identify and develop appropriate controls to ensure the security / process compliance.

• Identify and escalate any potential issues (i.e. fraud, KYB / KYC, legal documentation et cetera).

• Identify any gaps as needed and develop action plans as circumstances warrant.

• Identify data anomalies and recommend a course of action to Senior Management.

• Identify emerging risks to strengthen risk oversight.

• Identify fraud trends, document and communicate findings and lead proactive and reactive deep dives.

• Identify opportunities for continuous process optimization through automation methods.

• Identify opportunities to streamline and optimize approvals within acceptable credit risk levels.

Initial

Initial fraud review of applications and taking appropriate action.

Initiate

Initiate new campaign ideas, incentives and bonuses for the affiliate campaigns.

Interact

• Interact with internal department leaders as well as risk representatives from distributor entities.

• Interact with various business area managers on a regular basis.

Interview

Interview client stakeholders to distill business questions into actionable analysis.

Investigate

Investigate classification automation issues referred to PCC.

Lead

• Lead Security Risk Analyst- Information Security.

• Lead testing engagements and review the work of other testers.

• Lead the development of actuarial talent within the organization.

Learn

• Learn about general credit insurance underwriting practices.

• Learn to identify and flag items non-compliant with regulations.

Leverage

Leverage IFRS9 models and process to deliver insights on portfolio performance.

Liaise with

Liaise with the Internal Audit group to review reports and coordinate the annual internal audit plan.

Log

Log and report any breaches to policy to the Head of Credit Risk and CRO.

Maintain

• Maintain an inventory of proposed improvements.

• Maintain financial assurances.

• Maintain proper documentation for Halfaker Standards, Policies and Procedures as they relate to IT.

• Maintain risk documentation including the GS&S risk register with assessment outputs.

Make

Make recommendations for enhancements to detection policies.

Manage

• Manage challenging stakeholders, both internally and externally.

• Manage cross-functional initiatives to deliver on risk goals, policies and procedures.

• Manage key credit projects on behalf of the credit function required.

• Manage security findings with applicable stakeholders within the GRC system.

• Manage the efficiency and effectiveness of risk management within the business.

Mentor

Mentor / manage more junior researchers in the team.

Model

• Model execution and monitoring including issue identification, investigation, and resolution.

• Model maintenance and review (including regular backtesting).

• Model validation (including regular backtesting).

Monitor

• Monitor and report positions against risk metrics and limits.

• Monitor findings for Regulatory Change Management ocess.

• Monitor report performance once deployed and recommend rapid iteration if necessary.

Participate in

• Participate in business initiatives as assigned.

• Participate in Due Diligence review of potential acquisitions.

• Participate in monitoring and addressing Project risks.

• Participate in other ad hoc analysis around RBC's market risk exposures.

• Participate in penetration testing activities.

• Participate in scenario design and help facilitate workshops with the business for scenario analysis.

• Participate in various risk management projects to support broader Risk Analytics initiatives.

Perform

• Perform actuarial / quantitative analysis of the model outputs for a testing and validation purposes.

• Perform ad-hoc analysis and product performance analysis as needed.

• Perform Customer Risk Periodic Reviews.

• Perform ongoing monitoring of clients and information flow associated with the portfolio.

• Perform other duties as assigned.

• Perform security risk assessments in support of Supply Chain Risk Management Program.

• Perform special projects as needed.

Plan

Plan and coordinate compliance and internal control responses with the managers concerned.

Prepare

• Prepare and maintain process documentation, data libraries, and training materials.

• Prepare business requirements for IT development as part of an agile framework.

• Prepare data for Model Back-testing purpose and draft model vetting reports.

• Prepare insightful credit memorandum for new requests and ongoing credit actions.

• Prepare risk review materials for discussion with the CRO.

Process

• Process and QA the integrity of data used for analysis.

• Process electronic funds transfers and wires for merchants as needed.

• Process / workflow design.

Propose

Propose and implement enhancements to the credit approval and risk management processes.

Provide

• Provide advisory support in implementing these recommendations.

• Provide analytical support to management.

• Provide comprehensive reporting on retention risk metrics.

• Provide consultative support to various field offices and business units.

• Provide independent and consistent pricing and risk valuation for the products.

• Provide insights and analysis in portfolio planning to ensure systemic risk reduction.

• Provide measurable risk-response options to decision-makers.

• Provide ongoing advice to the wider business in relation to compliance and risk issues.

• Provide ongoing surveillance of activities to identify evidence and remediate riskier trends.

• Provide project support, including project tracking and coordination with subject matter experts.

• Provide specialized consulting, analytical and technical support.

• Provide support in the analysis of illicit trafficking and activities impacting Sanofi medicines.

• Provide timely, relevant, robust analyses to support business decisions related to credit risk.

Recommend

Recommend and implement solutions to address issues identified.

Refer

Refer expired records to the concerned RMTs for revalidation.

Reformat

Reformat property data from raw form for use in catastrophe modeling and exposure analysis.

Research

Research and develop strategies in responding to disputes and reducing chargeback losses.

Respond to

• Respond to internal and external requirements.

• Respond to questions from internal and external sources regarding the corporate insurance program.

Review

• Review all fund positions, identify concentrated exposures, and highlight results of stress tests.

• Review and develop existing and new customer risk segments.

• Review and monitor Key Risk Indicators and prepare analysis report.

• Review and release orders from customers on credit hold.

• Review and send risk reports.

• Review and validate price curves, perform pricing analysis, and ensure data integrity and accuracy.

• Review customer requests for increased credit limit assignment.

• Review external event data to identify emerging trends and related industry risk events.

• Review of all 1st line Committee (Credit Risk, Product, Pricing) material and attendance.

• Review of the model implementation, verification of user acceptance testing.

• Review onboarding data, account activity, and fraud losses.

• Review / provide recommendations for new acquisitions and account management programs.

• Review risks related to non-standard or structured transactions and new products.

Revise

Revise and update operational risk policies and processes.

Streamline

Streamline the notification time method and limit the human eye review time.

Submit

Submit front-door requests for updates related to risks and controls.

Support

• Support a culture of risk transparency and effective challenge.

• Support annual / biennial activities, including updating MD&A, SIP&G documents.

• Support control mapping to risks and associated security risk frameworks.

• Support policies and procedures to minimize exposure and drive the proper controls.

• Support RCC and BoD reporting deck preparation and execute follow up actions.

• Support the collections and recovery process.

• Support the implementation and management of project risk data base and related reporting.

• Support the Management of the Operational Risk Program and Practices.

• Support the Product / UX designers, guiding them on methodologies where needed.

• Support the relationship with relevant regional Trading Managers and Commercial leadership.

• Support the security compliance activities to ensure adherence to defined standards and policies.

Take

Take up ad-hoc analytics requests and identify data to accomplish task.

Terminate

Terminate the funding related to fraud activity, when identified.

Track

Track progress, analyse impact and effectiveness of mitigation measures.

Translate

Translate complicated data into graphical forms in a clear and insightful manner.

Trust

Trust determination process.

Understand

• Understand and comply with TD policies, regulatory, and compliance requirements.

• Understand and follow the incident response process through event escalations.

• Understand the industry, competition and the factors that differentiate the organization.

• Understand what is expected to attest to the accuracy of financial statements.

Uphold

Uphold the highest levels of integrity, lead by example, be courageous in raining concerns.

Upskill

Upskill and provide coaching for Member Service Operators and new starters as required.

Use

• Use key metrics to report on affiliate performance, and to deliver consumer insights.

• Use LexisNexis system to vet counterparties including ship owners / brokers / operators.

Validate

• Validate independently Front-Office reports (Positions, MTM, Exposure).

• Validate risk transfer options.

Work with

• Work closely with Information Technology on our annual IT / DR exercises globally.

• Work closely with IT to release code into the production framework.

• Work closely with Operations Team and IT Team to ensure successful systems operation.

• Work closely with risk managers globally to identify the exceptions and root cause analysis.

• Work closely with the Capital Markets team and external clients on any transaction or credit issues.

• Work in tandem with multiple and diverse business units simultaneously.

• Work with our Risk Management and Product partners to research and develop value added analysis.

• Work with technology teams to implement and optimize sustainable risk processes.

• Work with the developers on enhancing State Street's proprietary risk platform.

Write

Write research reports for assigned accounts, highlighting their business risks to assist Broker.

Most In-demand Hard Skills

The following list describes the most required technical skills of a Risk Analyst:

1. Finance

2. Risk Management

3. MS Excel

4. SQL

5. Economics

6. Python

7. Mathematics

8. Statistics

9. R

10. VBA

11. SAS

12. MS Powerpoint

13. Business

14. MS Word

15. Information Security

16. Project Management

17. Accounting

18. Tableau

19. FRM

20. Microsoft Office

21. Matlab

22. Cisa

23. Data Analysis

24. Reporting

25. Risk

26. CISM

27. CISSP

28. Power BI

29. Business Administration

30. CRISC

31. Financial Services

32. Physics

33. Data Mining

34. CPA

35. Cobit

36. Credit

37. Credit Risk

Most In-demand Soft Skills

The following list describes the most required soft skills of a Risk Analyst:

1. Written and oral communication skills

2. Analytical ability

3. Interpersonal skills

4. Attention to detail

5. Problem-solving attitude

6. Organizational capacity

7. Team player

8. Presentation

9. Flexible

10. Self-motivated

11. Critical thinker

12. Self-starter

13. Work independently with little direction

14. Time-management

15. Leadership

16. Multi-task

17. Collaborative

18. Planning

19. Confident

20. Negotiation

21. Relationship management

22. Highly motivated

23. Ability to manage multiple tasks

24. Bilingualism

25. Curious