What does a risk manager do on a project?

In the business world, a risk manageralso known in Spanish as risk analyst, has established itself as a figure in many business initiatives.

This professional’s mission is to foresee, identify and evaluate the risks that may arise during the development of a project. development of a project. This implies, of course, that a risk manager is also in charge of taking advantage of market opportunities.

What does a risk manager do?

As we have been discussing, a risk manager is in charge of assessing and mitigating risks that may affect the achievement of business objectives.. This means that in some way he or she is in charge of the stability and sustainability of the company within its environment. Some general aspects of the position are:

• Strategic vision: a risk manager contributes to the development of risk identification strategies. This ensures that business decisions always take into account potential threats.
• Interdepartmental liaison: acts as a bridge between different departments (or areas) of the company, thus facilitating coordination on issues related to risk management.
• Risk culture: fosters a culture that recognizes the importance of risk management, making the company’s personnel aware of the identification of potential threats.
• Adaptability: keeping up to date with the rules and regulations that affect the organization. This implies that these are complied with according to internal policies to minimize legal and financial risks.
• Innovation in risk management: incorporates new technologies and methodologies for risk identification and analysis. These are ways to help improve risk identification.

What are the functions of a risk manager?

By having to identify and manage potential threats to a company, a risk manager risk manager has several functions, among which the following stand out:

• Strategic integration: align risk management with the overall business strategy. This makes threat management circumscribed within the landscape of interest.
• Elaboration of the risk landscape: identify, analyze and, consequently, evaluate the different risks, both internal and external, faced by the company. Depending on the objectives and nature of the company, these will be different.
• Strategy design: develop plans and policies to counteract identified risks and their potential impact on the company.
• Follow-up and control: supervise the effect of the measures implemented, making any necessary adjustments.

What skills should a risk manager have?

To perform the functions we have seen above, a risk manager must be trained in a series of technical competencies and interpersonal skills:

• Financial knowledge: training in areas such as business administration and management, accounting or finance, which allow understanding and analyzing the economic side of risks.
• Analytical skills: ability to handle data analysis tools to assess risk probabilities and impacts.
• Regulatory proficiency: be familiar with the main risk management regulations to ensure best practices.
• Problem-solving skills: it is important to have the ability to identify solutions to unfavorable situations and, above all, to be able to make decisions under pressure.
• Leadership and teamwork: ability to coordinate teams and motivate business employees in the use of risk management practices.

How much does a risk manager charge?

The salary of a risk manager in Spain, as in many other jobs, varies depending on several factors, such as previous experience. In any case, some of the data are:

• According to Glassdoorthe average salary for a risk manager in Spain is approximately 47,000 euros per year.
• The Jooble portal portal indicates that the average salary for risk management45,000 euros per year, based on 112 real salaries. This same source indicates that, for the Community of Madrid, the average salary is 44,364 euros per year.
• On the other hand, according to most recent data from SalaryExpertthe average salary of a risk manager in Spain is 73,142 euros per year. A professional in the sector, for example, with 1 to 3 years of experience earns approximately 50,000 euros, while one with more than 8 years of experience can reach 90,000 euros.

Would you like to become a risk manager?

If you would like to learn more about project management and want to become an expert in the sector, our Master in Project Management is a great option. You will be trained through a program designed by leaders in Project Management. Our school, Esden Business School, is a reference center where you can acquire the skills to join a highly competitive market.