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What are the main qualities that describe the role of a Risk Analyst and how relevant are they in the corporate world?

Hello, I want to become a Risk Analyst in the near future #riskanalysis. I am currently majoring in finance and accounting and I have been taking management courses as well as information and technology courses based on various programs used in Data Analytics; however, though I have the general and principal idea of what and who a Risk Analysis is as well as his/her duties, I fail to pinpoint their relevance in the corporate world when there are already financial analyst, data analyst, corporate intelligence agents etc... I would like to know in the Insurance line of service #insurance how Risk Analytics plays a supporting role.

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Bill’s Answer

Risk Analysts are very important in today's highly analytical society. Now more than ever people are needed that can analyze all of the data points available and determine how to proceed from there. It's my opinion we can't leave this up to computers to make these decisions for us 100% of the time. Of course, they will make the most sound decision based on the data points, but if you leave it up to a computer 100% of the time, you will potentially lose in the end as you will potentially under-price bad business or over-price good business. It' s more than just the numbers, it's the story behind the numbers that tells the true story, this is where the analyst comes in. You evaluate based on the numbers, then you review WHY the numbers occurred.

I work for a workers compensation insurance carrier, and bad accidents occur. But why did it occur? Was it the fault of your employee following safety guidelines, or NOT following safety guidelines, the fault of a 3rd party, etc.? All these factors matter. If I priced an account solely on numbers alone, I will most likely be too high in price or too low in price compared to the market. You need to understand all factors surrounding the numbers in order to be able to price something accordingly. Our Risk Analysts are our underwriters, and this is a predominance of their job, understanding the facts about losses, how they are mitigated from re-occurring and why they occurred...where was the breakdown that resulted in the loss.

Risk analysis is a good field to get into and has a lot of different avenues within itself leading to a multitude of industries you can work in.

Best of luck and hope this helps. Feel free to reach out if you have questions.

Bill
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Wendy’s Answer

Analysis of Risk is a fundamental principle of Insurance. Insurance is used by most everyone in the U.S. and throughout the world to help manage financial risk to businesses as well as personal exposures such as your house/home/ car/ health. Analysts are used in many different departments to organize, present data to management/external customers and are highly valued, which is why you may see specialized job functions. Depending on the size of the analytic department of an organization, someone responsible for risk analytics may run a department or focus on a particular niche. Best of Luck with your studies!
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Melida’s Answer

I truly believe that being a risk analyst is the heart of so many major financial institutions and call centers! I cannot stress that enough. They are so relevant. The analysist that I was lucky enough to work with did everything for me. When numbers don't add up, when forecasting needed to be done, and they are the driving force behind time off for employees. The analysts are very respected and are ALWAYS in need. My Risk Analayst is now a Vice President at the bank we worked with when we were a team. Hope this helps but if you have any more questions please reach out to me

Best of luck to you!
Melida. 🌺
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Sidra’s Answer

So as a risk analyst you need the quantitative skills you described but you also need to think qualitatively as not all risk can be measured. Risk can take form outside of financial and market including legal, reputational and operational. So I would say don't be afraid to ask lots of questions and think of risk from many perspectives (both internal an external).
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Keana’s Answer

Risk analysts are very important. I can't think of many companies that don't have them. Risk analysts measure risks as I'm sure you're aware. Even in the healthcare industry they are very necessary. Risks need to be evaluated for member communications, changes, impact and more. If you're interested in looking into risk management career path I'm sure it'll be very rewarding.
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