Career Definition of Political Risk Analysts
Political risk analysts provide specialized evaluation services to individuals and organizations on potential investments. These analysts consider the political and economic climates, as well as societal trends, of the investment country. They will analyze everything from a country's currency to crime rates. Employment as a political risk analyst is not limited to just insurance or financial services firms. These analysts can work for companies with international holdings, energy organizations, or even consulting firms that collect and sell political risk information. Some political risk analysts may choose to specialize in a specific geographic area; however, you will be more marketable if you are able to learn new trends and analysis practices.
As a political risk analyst, you will evaluate multiple facets of a country and ascertain areas that will put a company's investments at risk. You will then provide the client with your findings on the potential risks associated with a country. In some positions, you will not only provide your findings, but also a recommendation on the viability of an investment in that country. This may include developing risk management practices should a company choose to invest despite the associated risks.
|Educational Requirements||Bachelor's degree|
|Job Skills||Excellent analytical abilities, strong communication skills, and financial acumen|
|Average Salary (2018)*||$66,077|
|Job Outlook (2016-2026)**||9% (Business operations specialists, all other)|
Sources: *Glassdoor.com, **U.S. Bureau of Labor Statistics (BLS)
While a bachelor's degree is needed for this career, you will have a wide range of degree fields to choose from. Political risk analysts can pursue a degree in international relations, business, law, or finance. Internship experience would be beneficial if you desire to work at a larger company, such as an international financial institution.
As a political risk analyst, you must have excellent analytical abilities. Your success in this role is intricately tied to your ability to effectively analyze a country for investment purposes and interpret your findings. You will also need strong communication skills in order to develop a relationship with clients and gain support for your recommendation. This role also requires financial acumen, as you will be analyzing a country's currency, market conditions, and other financial data in your decision-making process.
Career Outlook and Salary
A political risk analyst is not a career that is covered by the U.S. Bureau of Labor Statistics (BLS). An appropriate BLS group for this role would be 'business operations specialists, all other.' The BLS lists a projected job growth of 9% for 2016-2026 for this group, which is average compared with all other careers. The website Glassdoor.com lists a 2018 average yearly salary of $66,077 for political risk analysts.
A political risk analyst assesses the probable risks of investments for organizations. There are many positions that deal with assessing or mitigating risk, such as nonprofit financial analyst or regulatory compliance manager.