How to Become a Risk Analyst

Key takeaways

Risk analysts interpret data to assess a company's financial risk and help minimize its potential losses.

• Glassdoor reports the median total salary for a risk analyst is $99,000 [1].

• Essential technical skills for a risk analyst include data analysis, statistical analysis, risk assessment, and process improvement. 

• You can pursue industry-standard certifications, such as the Chartered Financial Analyst (CFA), to boost your career prospects as a risk analyst.

Gain a deeper understanding of the role and responsibilities of a risk analyst, along with what it takes to become one. Afterward, if you're interested in developing essential risk analysis skills, consider enrolling in the New York Institute of Finance's Risk Management Specialization, where you'll have the opportunity to learn how to build an operational risk assessment program, among other things. In as little as four weeks, you’ll not only have the chance to develop competency in risk measurement and analysis, but you’ll also earn a shareable certificate for your resume or LinkedIn profile on completion.

What is a risk analyst?

Risk analysts interpret data to assess a company's financial risk based on its strategy, operations, investments, and even natural disasters, and help minimize its potential losses. Using data from past events, industry trends, economic conditions, and regulatory changes, risk analysts can predict outcomes and consequences that feed into a company's forecasts and make recommendations to mitigate any risks they foresee.

As a risk analyst, you may find employment across an array of businesses, organizations, or financial institutions. Risk analysts can be in demand for companies going through a policy change or a new course of action.

What does a risk analyst do?

The duties and responsibilities of a risk analyst can vary based on your area of expertise. However, the primary duties of a risk analyst tend to include:

• Working to reduce the risk in business and financial decisions

• Analyzing markets, financial data, industry trends, and potential threats

• Identifying processes and strategies that contribute to risk

• Building forecasts and predictions based on analyzing data

• Reporting on findings and making recommendations 

• Presenting findings to the executive team and stakeholders 

• Preparing strategies to mitigate risk

• Utilizing data analytics tools and risk information management software (RIMS)

Read more: Risk Management: Key Concepts, Certifications, and Exam Preparation Tips

Essential risk analyst skills

Working as a risk analyst requires a range of both technical and workplace skills, as you need to analyze complex data and communicate with your team, delivering reports and recommendations. Examples of essential risk analyst skills include:

Learn how to create quantitative models to reflect complex realities, and how to include elements of risk and uncertainty in your model, in the Wharton School's Modeling Risk and Realities.

What qualifications do you need to be a risk analyst?

To become a risk analyst, you typically need at least a bachelor’s degree. You may choose to study a subject such as finance or business when pursuing your bachelor’s degree. Some risk analysts go on to pursue their master’s degree to potentially qualify for more risk analyst roles. Another way to stand out to future employers is to earn a risk analyst certification, which can help you demonstrate risk analyst-specific skills.

Types of risk analysts

There are four main categories of risk analysts that exist, all with a slightly different focus on the types of risk they assess:

• Credit risk analysts: If you are a credit risk analyst, you are likely employed by a bank, insurance company, credit card lender, mortgage company, or rating agency. It’s your job to assess the risk of lending money to people who don’t pay their loans or for products and services.

• Operational risk analysts: As an operational risk analyst, you assess a company's operations and processes to understand risk, produce strategies to mitigate risk, and improve procedures that may cause financial loss. For example, you would be responsible for preparing for operational risks such as a faulty product or a fraudulent employee.

• Marketing risk analysts: In your role as a marketing risk analyst, you would have specialized industry knowledge that you use to review and advise on investments and company share positions within the stock market. Marketing risk analysts often work within the investment or finance industries, as they deal with risk involving the stock market and company investments.

• Regulatory risk analysts: As a regulatory risk analyst, it’s your responsibility to look at changes in regulations and new legislation affecting the stock market and company investment.

How much do risk analysts make? Salary and job outlook

Glassdoor reports the median total salary for a risk analyst in the US as $99,000 [1]. The US Bureau of Labor Statistics (BLS) projects financial analyst jobs to grow by 6 percent between 2024 and 2034, amounting to approximately 29,900 job opportunities per year [2].

Risk analyst jobs

There are different career paths and types of advancement you can explore if you're interested in a risk analyst career. Below, you’ll find possible job titles to consider with their median annual total salaries:

• Financial analyst: $107,000

• Credit risk analyst: $130,000

• Portfolio manager: $176,000

• Lead risk analyst: $143,000

• Market risk analyst: $114,000

• Operational risk analyst: $110,000

• Regulatory risk analyst: $106,000

• Senior financial analyst: $131,000

• Senior risk analyst: $153,000

• Fund manager: $258,000

All salary information represents the median total pay from Glassdoor as of March 2026. These figures include base salary and additional pay, which may represent profit-sharing, commissions, bonuses, or other compensation.

How to become a risk analyst 

Becoming a risk analyst requires a bachelor's degree, knowledge of finance and business, and experience. Below, we've outlined the common steps to becoming a risk analyst, although the path can differ depending on the types of jobs you're interested in.

1. Earn a bachelor's degree.

A bachelor's degree is a common requirement in this line of work, with 71 percent of risk analysts holding a bachelor’s degree, according to Zippia [3]. The college major you choose can also be important. Relevant majors such as business, accounting, finance, information technology, or statistics can help you prepare to become a risk analyst.

2. Gain experience.

If possible, an internship can be a great starting point, helping you gain important experience and network with other professionals in the field. Entry-level roles in risk analysis are often titled "junior risk analyst." With somewhere between two and four years of experience, you can advance to an associate analyst or risk analyst role.

3. Earn a certification.

There are a few industry-standard certifications available to financial assessment professionals, including Chartered Financial Analyst (CFA), Financial Risk Manager (FRM), or Certified Risk Manager (CRM). Earning one of these certifications can be a way to demonstrate your standardized knowledge and skill set. Each certification exam has different requirements, and you should take time to determine which one is best for your career goals. To apply for CFA, for example, you need a minimum of 4000 hours of experience in a relevant field, obtain Charterholder membership, and have to pass a three-part exam.

While it may not be a requirement of a job posting, you may find that some employers prefer certification. If they don't, it can help you stand out from other candidates and even advance in your risk analyst career.

4. Consider a master’s degree.

To advance in the field of risk analysis, you may want to consider earning a master's degree. It's not a requirement, but it can be a way to differentiate yourself from other job candidates and advance in your career. According to Zippia, 16 percent of risk analysts earn a master’s degree to boost their resume and knowledge [3].

Risk analysts with a master's degree earn nearly $10,000 more annually on average than those with a bachelor's [3]. And a master's degree can be especially important if you want to advance to senior positions like a fund manager or portfolio manager.

Uncover practical guides for your career journey

Join Career Chaton LinkedIn to get weekly updates on popular skills, tools, and certifications in your industry. Discover more about data analytics careers with other free digital resources:

• Hear from an expert: 8 Questions with an Expert: Google Financial Data Analyst

• Watch on YouTube: Data Analyst vs. Business Analyst: Which Career Path Is Right for You?

• Explore related jobs: Data Analysis Career Progression: Job Levels & Skills to Advance

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