The Career of a Risk Manager: Education, Skills, Salary & More

• cryptojobs.com
• February 14, 2024
• All Posts, Career Guide
• 0 Comments

Crypto Risk Management is a high-stakes career that requires dedication and determination of the highest proportion. The job requires the individual to minimize a crypto company’s downside exposure by analyzing, identifying, and managing acceptable levels of uncertainties in the company’s daily operations.

With the increase in global economic instability, crypto risk manager jobs have taken a pivotal position in the heart of the crypto industry. Needless to say, this has made risk management one of the most sought-after positions in the job market.

If you are one of those individuals who are interested in making it your career, here is everything you need to know about the career path of a crypto risk manager.

Career Outlook: Role of Crypto Risk Manager

In the fast-paced world of cryptocurrencies, the role of a crypto risk manager is crucial. Picture it as safeguarding a company’s interests in the exciting yet unpredictable crypto market.

Every day starts with diving into the latest crypto news, keeping an eye on digital asset prices, and assessing potential risks. The job involves working closely with different teams, such as operations and compliance, to ensure the company stays within safe risk limits.

Identifying and managing issues that could impact the business is a key part of the job. Unlike traditional banking, where losses might be easier to predict, dealing with the unpredictability of cryptocurrencies requires a keen eye for risks and taking proactive steps to minimize them.

If there’s a loss, the crypto risk manager follows a thoughtful process. They report the incident to higher-ups, possibly even senior management, and then collaborate with the team to create action plans to prevent it from happening again.

You may like to read our blog: A Day in the Life of a Risk Analyst

Requirements for Becoming a Risk Manager

Now we dive into details regarding the education and skills needed, as well as what the average compensation for the role of a risk manager is like.

1. Education Requirements

Most organizations require you to have a bachelor’s degree at the very least. For most risk managers, they need to have a degree in mathematics or statistics. Some countries have dedicated bachelor’s degrees in risk management that are 3-4 years long and provide all the necessary skills required for the job.

Some organizations do require a master’s degree as well, and the most common one held by those in this position is a master’s in business administration (MBA).

2. Certifications

Early in your career in risk analysis, you would not require any certifications. However, if you become a risk manager, you will need to build up your profile. There are several certifications out there. Some of the most well-known certifications are Financial Risk Management (FRM) and Chartered Financial Analyst (CFA) certifications.

Here is what you need to know about them:

• FRM: The FRM certification is highly relevant for professionals in this field as it directly aligns with the key responsibilities of the role. Globally recognized, it holds equivalence to the Regulated Qualifications Framework (RQF) Level 7 in the UK or a master’s level degree in the US. With over 71,000 certified FRM professionals worldwide, it signifies a substantial presence in the industry.
• CFA: On the other hand, the Chartered Financial Analyst (CFA) certification is a widely acclaimed choice, acknowledged by top finance employers globally. While also benchmarked at RQF Level 7 in the UK or equivalent to a master’s degree in the US, the CFA charter goes beyond risk management, offering a broader finance knowledge base. The extensive reach of CFA is evident, with over 180,000 charter holders worldwide.

Both FRM and CFA certifications hold significant weight, but they differ in their focus and scope. FRM is directly tailored for financial risk management, making it a specialized choice for those diving deep into risk-related roles. Meanwhile, CFA provides a comprehensive understanding of finance, offering versatility in Web3 career options beyond risk management.

3. Skill Requirements

The role of a risk manager is a very high-stress one; it requires a great deal of skills, and most organizations often value these skills in the long run. Firstly, to survive in this role, you need to be level-headed and become someone who takes pressure well. The role relies heavily on resilience, as decisions made will not always lead to positive outcomes.

Secondly, you need to possess leadership qualities. As a manager, you will be tasked with the responsibility of managing not only decision-making but also your team. Being a leader requires being open to opinions yet firm when the time for a final decision comes. Moreover, it demands you to have influence.

4. Salary Expectations

Risk management is a high-level role, which means you would need to climb up the ladder to assume this position. Though climbing the corporate ladder sounds ambitious at first glance, it is fairly simple. You move from being a junior risk analyst to being a risk manager, and the compensation for the role increases twofold from $60,000 to $120,000. You can still move up in your career by either becoming a senior risk manager or chief risk officer.

To begin your journey in risk management, head to cryptojobs.com, where passion meets opportunity.