Credit risk analyst positions include credit risk analyst, loan officer, insurance underwriter, and risk manger. These careers all require a degree. The job growth outlook is about average for these careers, though insurance underwriter positions are expected to decline.
Degrees that qualify you for a career as a credit risk analyst involve coursework in financial accounting, banking and insurance principles, statistics and risk assessment. Toward the end of the program, students complete an internship at a commercial bank or investment company. Analysts looking to become risk managers need to have a master's degree in business administration, finance or economics. Programs typically last 12-24 months.
|Career||Credit Risk Analyst||Loan Officer||Insurance Underwriter||Risk Manager|
|Education Requirements||Bachelor's degree||Bachelor's degree||Bachelor's degree||Master's degree|
|Other Requirements||Voluntary certification available||Mortgage loan officers need to be licensed||Certification typically preferred||Voluntary certification available; licensure sometimes required|
|Projected Job Growth (2014-2024)*||6%||8%||-11%||7% for financial managers|
|Median Salary||$69,680 (2015)*||$63,430 (2015)*||$65,040 (2015)*||$82,083 (2016)**|
Source: *U.S. Bureau of Labor Statistics; **PayScale.com
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Many jobs in finance and related industries involve credit risk analysis. Read the profiles below to learn more about these positions, including job outlook and salary information.
Credit Risk Analyst
Credit risk analysts work for commercial and investment banks, credit rating agencies, investment companies and other organizations that offer financing for products and services, such as a house or a new business. According to the U.S. Bureau of Labor Statistics (BLS), the middle half of credit analysts brought in yearly wages ranging from $51,750 to $95,260, with a median annual salary of $69,680, in May of 2015. Employment prospects in this field were expected to increase 6% between 2014 and 2024, per the BLS.
Loan officers assess whether companies or persons looking to borrow money should receive the loan based on their risk factors. As of 2015, the median annual salary for loan officers was $63,430 per year, according to the BLS. The number of jobs in this field was expected to increase 8% from 2014-2024, which is close to the average for all occupations.
Insurance underwriters write policies that cover risks, such as car accidents, property damage or illness. Per BLS statistics, insurance underwriters made a median annual salary of $65,040. Employment opportunities for underwriters were projected to decline 11% between 2014 and 2024, notes the BLS.
Risk managers minimize a company's financial risks by acquiring insurance against such problems as employee lawsuits, injuries suffered on the job or factory damage caused by a tornado. Risk managers received a median yearly wage of $82,083 as of 2016, per PayScale.com. The number of positions for all financial managers in general was expected to grow 7% from 2014-2024, according to the BLS.
Credit Risk Certified (CRC) Credential
Credit risk analysts with a bachelor's degree and five years' experience working in commercial banking can sit for the CRC exam, which is offered by The Risk Management Association. The computer-based exam contains 126 multiple-choice questions that take approximately five hours to complete. After passing the exam, certified individuals must maintain 45 Continuing Education Units and renew their certification every three years (www.rmahq.org). Licensure is not required in order to practice as a credit risk analyst.
Commercial Certified Mortgage Banker (CMB) Credential
Credit risk analysts who want advance to mortgage lending positions can obtain the CMB credential from the Mortgage Bankers Association (MBA). The exam consists of a 6-hour written test and a 1-hour oral exam. The written test is proctored at the applicant's location, while the oral exam is conducted by a member of the MBA at one of their office locations (www.campusmba.org).
Professionals in field of credit risk analysis generally require a bachelor's degree, though a risk manager may require a master's degree. Certification is available and usually voluntary. Some positions may require licensing.