What does a risk analyst do?

In the business environment, effectively managing the risks that threaten companies has become essential to ensuring long-term success and sustainability.

In this context, risk analysts have become crucial for strategic decision-making and protecting business interests. Given the diverse nature of the risks companies face, these professionals specialise in various areas ranging from cybersecurity to compliance and finance. In this article, we will explain what a risk analyst does in the financial sector.

To work in this rapidly growing and in-demand sector, specialised training is necessary. Programmes like the master in Financial Management from Universidad Europea are very useful for acquiring the necessary knowledge in business and accounting to pursue this career.

What is a risk analyst?

A risk analyst is an expert responsible for detecting, evaluating, and anticipating potential risks that could affect the operation and stability of a company. The primary objective of this professional is to create and execute plans to reduce risks and mitigate their effects should they materialise.

What types of problems does a risk analyst solve?

In finance, the main risks companies face are classified into the following categories:

• Market risks: These involve potential changes in interest and currency exchange rates, market conditions, or the value and competitiveness of the company.
• Operational risks: Internal weaknesses within the company, such as losses or staff issues.
• Liquidity risks: Difficulty or inability to meet financial obligations due to cash flow problems or inability to liquidate assets.
• Credit risks: Losses resulting from non-payment of debts by the company's creditors.
• Country risks: External conditions affected by international conflicts or changes in fiscal and foreign trade policies of the countries where the company operates.

Functions of a risk analyst

The work of a risk analyst can be decisive for the success or failure of a business. Among their most important functions are the following:

• Conducting detailed examinations of the company's financial statements and management reports.
• Identifying potential risks that could affect cash management.
• Preparing reports and proposals to reduce these risks.
• Implementing plans to mitigate risks.
• Studying market changes and economic trends to anticipate risks and suggest solutions.
• Monitoring compliance with agreements and contracts related to corporate financing. Supervising the company's financial development.

Salary of a risk analyst

The salary of a risk analyst varies depending on the company and its location, job requirements, and the employee's experience. However, according to the job search platform Indeed, the average annual salary of a risk analyst in Spain is approximately €29,141 gross per year.

Additionally, in cities like Madrid or Barcelona, the salary can increase to reach or even exceed €35,000 per year.

How to become a risk analyst? 

Professionals working as financial risk analysts possess knowledge of finance, accounting, economics, and administrative management. To start in a junior position, a degree in a related area such as a degree in Economics may be sufficient, which can then be complemented with specialised bachelor's or master's degrees.

The competencies and skills required for this job include:

• Analytical and problem-solving skills.
• High level of accounting and financial knowledge.
• Excellent communication skills, both verbal and written.
• Planning and strategic thinking ability.
• Advanced proficiency in tools for statistical and mathematical analysis.
• Ability to work in a team and participate in multidisciplinary projects.

In conclusion, in the field of finance, risk analysts play a crucial role in protecting the company against potential eventualities that could affect its financial capability. They rely on specialised knowledge and a set of technical and soft skills that can be developed through training and experience. If you are interested in working in this sector, Universidad Europea offers a wide variety of Business programmes where you can choose the one that interests you most.