Market risk analysts are responsible for assessing the demand and supply of products in a given industry. They must have a strong grasp of the industry to provide companies with information that helps them make informed business decisions regarding investments or ventures proposed by their company.
According to the U.S Bureau of Labor Statistics, in 2020 median annual income for financial analysts, including risk analysts, was $83k, and they expect an average employment growth rate is 5%.
Market Risk Analyst Duties
Market risk analysts make research to determine the probability of asset loss or the profit from investments in their particular industry. Tasks may include:
- Conducting statistical analyses
- Reporting and presenting research results
- Developing risk management systems
- Consulting with securities traders
Educational Requirements Of Market Risk Analyst
Companies often require that analysts hold at least a bachelor’s degree. These include finance, business, accounting, and statistics-related degrees, which may best prepare students for risk analysis careers. Some companies prefer to hire candidates with graduate school experience such as an MBA or Master of Business Administration (MBA) in Finance where relevant courses cover managing corporate investment portfolios and analyzing interest rate fluctuations.”
The BLS also maintains that employers may expect employees to have professional certifications, such as Chartered Financial Analyst (CFA) credential. Usually it takes 4 years i order to complete the curriculum and pass three required exams. Additionally, CFA’s must adhere to a code of ethics or standards. They are subject to FINRA licensing regulations too.
In market risk analysis, analysts look for patterns in data to measure the likelihood of a company’s future performance. They usually have an MBA and CFA credential from their education background because it is required by employers that want reliable results from these professionals.
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