Risk Analyst is a broad job description that spans insurance risk and all financial risk analysis.
Insurance risk analysts investigate the risks of insurance policies, conducting specialist risk surveys of properties and advising both clients and companies what they can do to reduce or avoid it. From the standard industries to the more complex and hazardous sectors such as chemicals or electronics, risk analysts are needed to survey them all.
Insurance risk analysts produce detailed reports so companies understand any potential risks and the likelihood of them happening. They also need to keep abreast of the latest technical aspects and advancements that could affect risk levels, which includes new legislation and hazardous materials in properties.
Financial risk analysts identify and analyse the areas of potential risk threatening the assets, earning capacity or success of organisations in the industrial, commercial or public sector. They are sometimes called risk managers, risk technicians or risk surveyors. They have the responsibility of forecasting cost to the organisation and predicting change and future trends.
There are high degrees of specialisation within the profession. Risk analysts may work in sales, origination, trading, marketing, financial services or private banking, specialising in credit, markets, operations or regulations. Financial institutions are required to manage market and credit risks daily. Risk analysts are therefore increasingly tasked with responsibilities touching all four key areas.
An alternative but similar role to financial risk analyst is that of the credit analyst in which the creditworthiness of a business is calculated and a probability of payment determined. Risk analysis is considered by many to be advanced credit analysis. A financial risk analyst's role is to formalise the process of risk management within an organisation. This involves business decision-making and enabling the process of risk taking.