Skip to:

  • Skip to main content
  • Skip to accessibility
City, University of London
  • Student Hub
  • Staff Hub
Search
Menu
Home
  • Prospective students
    • Courses
      • Undergraduate degrees
      • Apprenticeships
      • Foundation courses
      • Postgraduate taught degrees
      • Postgraduate research degrees
      • Short courses
      • Professional development courses
      • City Health courses
    • Apply
      • Entry requirements
      • How to apply
        • Undergraduate
        • Apprenticeship
        • Information for teachers
        • Postgraduate taught
        • Postgraduate research
          • Preparing your application
            • Preparing your research proposal
          • All PhD research projects
        • Booking Short Courses
          • Business and Management Short Courses
          • Computing Short Courses
          • Creative Industry Short Courses
          • Creative Writing Short Courses
            • The Novel Studio published alumni
          • Law Short Courses
          • Modern Languages Short Courses
      • Prospectus
        • Undergraduate
        • Postgraduate
      • Visas
        • Student visas
          • Applying from outside the UK
          • Applying from within the UK
          • Applying for a dependant visa
          • Preparing your application
          • Working in the UK
        • Standard Visitor visas
          • How to apply for a Standard Visitor Visa
          • Non-visa nationals
        • ATAS certificates
        • Brexit and European nationals
      • Study abroad programmes
        • Study abroad programme
        • Partnership programme
      • Clearing
        • Applying through Clearing
      • Alternative entry routes
        • Foundation programmes
        • Second-year students
        • Work experience
      • Contact Admissions
    • Finance
      • Funding options
      • Earn while you learn
      • How to pay
        • Payment methods
        • Fee schedules
        • Deposit refunds
      • Additional expenses
    • Accommodation and housing
      • Compare residential halls
      • Applying for halls
        • Undergraduate
        • Postgraduate
        • Clearing
      • Paying for halls
      • Private accommodation
        • Finding a place to live
        • Accommodation for families
      • Short-term accommodation
    • Open events and fairs
      • Campus tours
      • Online chats
        • Undergraduate online events
        • Postgraduate online events
        • Ask a student
      • University fairs
    • Student life
      • London experience
      • Local area
      • Sports
        • Sport clubs
        • Non-competitive sport
        • Competitive sport
      • Social activities and groups
      • Religion
      • Lesbian, gay, bisexual, transgender and queer plus
      • Volunteering
      • Student wellbeing
        • Mental health counselling
        • Learning support
        • Young, estranged students
        • Care leavers
        • Young adult carers
        • Personal tutoring programme
      • Learn another language
    • Career development
      • Placements, internships and employment opportunities
        • Micro-placements
      • Career pathways
      • Job prospects and graduate destinations
      • Careers team
    • Subjects
  • Research
    • Research centres and groups
    • Research impact
      • Research Excellence Framework
      • Research case studies
    • Research strategy
    • Research support
      • Grants and funding
      • Integrity and ethics
        • Research ethics
          • Principles
          • Approval process
          • Approval outcomes and appeals
          • External ethics approvals
        • Ethics guidance and resources
          • Participant information and consent
          • Recruiting participants from City
          • Records management
          • Research conducted abroad
          • FAQ
        • Research integrity
          • Framework for good practice in research
          • Research misconduct
      • Research data
        • Managing active research data
        • Digital research data and Figshare
      • Researcher development
    • Doctoral College
      • Funding and scholarships
      • Essential information
      • Meet the Team
      • Training and Development
        • Researcher Development Programme (DRDP)
      • Research Supervisors
  • For businesses
    • Start your business
      • Develop your startup idea
        • One-to-one startup advice
        • The Good Entrepreneur Festival
        • Startup Camp
        • Startup Seminars
        • Side Hustle
        • CitySpark Workshops
      • Launch your startup
        • Start-up visa
        • Launch Lab
    • Grow your business
      • Fund your business
      • Hire an academic consultant
      • Purchase our intellectual property
      • Companies formed
    • Develop your people
      • Bespoke training
      • My Home Life England
      • Degree apprenticeships for business
        • What is the apprenticeship levy?
    • Business impact case studies
    • Access our student talent
      • Recruit with us
      • Meet and support our students
        • Become a mentor
        • Employer engagement events
        • Micro-Placements
        • Industry Led Projects
      • Information for placement partners
        • Speech and Language Therapy training
  • Alumni and supporters
    • Alumni benefits
    • Global alumni network
      • Networks and Groups
        • City Alumni LinkedIn groups
        • MENA Alumni Board
        • US Alumni Board
      • Alumni Ambassadors
      • Special Interest Groups
      • Alumni News and stories
      • Alumni Events
    • Contact Alumni Relations
    • Support City
      • Donate to City
      • Volunteering
      • Your impact
  • News and events
    • News
    • Events
    • Social media directory
      • City social accounts
        • WeChat social accounts
      • School and Departmental accounts
  • About us
    • Schools and Departments
      • School of Policy & Global Affairs
        • About the School
          • Athena Swan
        • Department of Economics
        • Department of International Politics
        • Department of Sociology and Criminology
          • Postgraduate Sociology at City
      • School of Communication & Creativity
        • About the School
          • Athena Swan
          • Creatives in Residence
        • Department of Journalism
          • James Cameron Memorial Lecture
            • Lectures
            • Special awards
            • Winners
        • Department of Media, Culture and Creative Industries
          • English, Publishing and Creative Writing
          • Culture and the Creative Industries
          • Library and Information Science
          • Media and Communications
        • Department of Performing Arts
        • The Centre for Language Studies
      • Bayes Business School
      • School of Health & Psychological Sciences
        • About the School
          • Athena SWAN
          • Selection Process
          • Occupational Health Checks
          • Disclosure and Barring Service (DBS) enhanced check (formerly CRB)
          • MSc Nursing - RPL
          • Reference request
        • Department of Health Services Research and Management
          • Health Services Management at City
        • Department of Language and Communication Science
        • Department of Midwifery and Radiography
          • Radiography undergraduate learning contract
          • Postgraduate Midwifery at City
          • Radiography at City
        • Department of Nursing
        • Department of Optometry and Visual Sciences
        • Department of Psychology
      • School of Science & Technology
        • About the School
          • Athena SWAN
          • Aviation Management at City
          • Civil Engineering at City
          • Computer Science at City
          • Cyber Security MSc courses at City
          • Energy MSc courses at City
          • Library and Information Science at City
          • Maritime Management at City
          • Placements and internships
            • Placement and internship schemes
        • Department of Computer Science
        • Department of Mathematics
          • Potential PhD projects
        • Department of Engineering
      • The City Law School
        • Academic programmes
          • Undergraduate degree LLB
          • Graduate Entry Law GE LLB
          • Graduate Diploma in Law GDL
          • Master of Laws (LLM)
        • Professional programmes
        • Research and Scholarships
        • Athena Swan in The City Law School
        • Equality, Diversity and Inclusion at The City Law School
        • Barrister training
          • Bar Training
          • Pupillage Advice Service
        • Solicitor training
          • Future Solicitors Careers Advice Service (FSCAS)
          • The Solicitors' Qualifying Exam (SQE)
        • Law in real life (Law IRL)
          • Legal work placements
          • Court visits
          • Mock Trials
        • About The School
          • Prizes from The City Law School
          • Global Engagement
      • Dubai Centre
    • History
    • People
      • Academics
      • Research students
      • Students
      • Honorary graduates
      • Past students
      • Professional Services staff
      • International agents and representatives
      • Senior people
      • Extraordinary women
    • Facilities
      • Campuses
      • Libraries
      • Gym
      • University of London facilities
      • Specialist facilities
    • Work for us
      • Apply
      • Benefits
      • Career development
    • Vision and Strategy
      • Academic excellence
        • Rankings
        • Education
          • Flexible learning spaces
          • Active and collaborative learning
          • Term dates
        • Student statistics
      • Equality, diversity and inclusion
        • Equality, Diversity and Inclusion Strategy
        • Data and objectives
        • Staff networks
        • Digital Accessibility
      • Sustainable development
        • Get involved
        • Environmental Impact and Performance
      • Civic engagement
      • Social responsibility
        • Social responsibility in our outreach
        • Social responsibility in action
    • Governance and legal
      • Charter and Statutes
      • Rector
      • Council
        • Audit and Risk Committee
        • Corporate Governance and Nominations Committee
        • Remuneration Committee
        • Strategy and Finance Committee
        • Development Committee
      • Senate
        • Board of Studies
        • Collaborative Provision Committee
        • Educational Quality Committee
        • Research and Enterprise Committee
        • Senate Research Ethics Committee
      • Executive leadership
      • Financial statements
        • Financial Summary
      • Legal documents and policies
      • Committees
    • Global City
    • Contact us and find us
      • Find us
      • Contact us
      • Staff directory
    • Guidance on Coronavirus
      • Admissions advice during coronavirus
        • Coronavirus accommodation information
      • Latest updates
      • Advice for visitors to our campus
  • Student Hub
  • Staff Hub
  • Prospective students
    Prospective students
    • Courses
      • Undergraduate degrees
      • Apprenticeships
      • Foundation courses
      • Postgraduate taught degrees
      • Postgraduate research degrees
      • Short courses
      • Professional development courses
      • City Health courses
    • Apply
      • Entry requirements
      • How to apply
      • Prospectus
      • Visas
      • Study abroad programmes
      • Clearing
      • Alternative entry routes
      • Contact Admissions
    • Finance
      • Funding options
      • Earn while you learn
      • How to pay
      • Additional expenses
    • Accommodation and housing
      • Compare residential halls
      • Applying for halls
      • Paying for halls
      • Private accommodation
      • Short-term accommodation
    • Open events and fairs
      • Campus tours
      • Online chats
      • University fairs
    • Student life
      • London experience
      • Local area
      • Sports
      • Social activities and groups
      • Religion
      • Lesbian, gay, bisexual, transgender and queer plus
      • Volunteering
      • Student wellbeing
      • Learn another language
    • Career development
      • Placements, internships and employment opportunities
      • Career pathways
      • Job prospects and graduate destinations
      • Careers team
    • Subjects
  • Research
    Research
    • Research centres and groups
    • Research impact
      • Research Excellence Framework
      • Research case studies
    • Research strategy
    • Research support
      • Grants and funding
      • Integrity and ethics
      • Research data
      • Researcher development
    • Doctoral College
      • Funding and scholarships
      • Essential information
      • Meet the Team
      • Training and Development
      • Research Supervisors
  • For businesses
    For businesses
    • Start your business
      • Develop your startup idea
      • Launch your startup
    • Grow your business
      • Fund your business
      • Hire an academic consultant
      • Purchase our intellectual property
      • Companies formed
    • Develop your people
      • Bespoke training
      • My Home Life England
      • Degree apprenticeships for business
    • Business impact case studies
    • Access our student talent
      • Recruit with us
      • Meet and support our students
      • Information for placement partners
  • Alumni and supporters
    Alumni and supporters
    • Alumni benefits
    • Global alumni network
      • Networks and Groups
      • Alumni Ambassadors
      • Special Interest Groups
      • Alumni News and stories
      • Alumni Events
    • Contact Alumni Relations
    • Support City
      • Donate to City
      • Volunteering
      • Your impact
  • News and events
    News and events
    • News
    • Events
    • Social media directory
      • City social accounts
      • School and Departmental accounts
  • About us
    About us
    • Schools and Departments
      • School of Policy & Global Affairs
      • School of Communication & Creativity
      • Bayes Business School
      • School of Health & Psychological Sciences
      • School of Science & Technology
      • The City Law School
      • Dubai Centre
    • History
    • People
      • Academics
      • Research students
      • Students
      • Honorary graduates
      • Past students
      • Professional Services staff
      • International agents and representatives
      • Senior people
      • Extraordinary women
    • Facilities
      • Campuses
      • Libraries
      • Gym
      • University of London facilities
      • Specialist facilities
    • Work for us
      • Apply
      • Benefits
      • Career development
    • Vision and Strategy
      • Academic excellence
      • Equality, diversity and inclusion
      • Sustainable development
      • Civic engagement
      • Social responsibility
    • Governance and legal
      • Charter and Statutes
      • Rector
      • Council
      • Senate
      • Executive leadership
      • Financial statements
      • Legal documents and policies
      • Committees
    • Global City
    • Contact us and find us
      • Find us
      • Contact us
      • Staff directory
    • Guidance on Coronavirus
      • Admissions advice during coronavirus
      • Latest updates
      • Advice for visitors to our campus
  1. Home
  2. …
  3. Career development
  4. Career pathways
  5. How to become a financial risk analyst
Career development
  • Placements, internships and employment opportunities
    • Micro-placements
  • Career pathways
  • Job prospects and graduate destinations
  • Careers team
Female students working together on a computer in the Financial resources zone

How to become a financial risk analyst

A financial risk analyst, also known as a financial risk manager (FRM), has two principal roles with an organisation.

What does a financial risk analyst do?

First, as the title suggests, identifying and analysing the financial risks that their employer faces. Second, proposing strategies to counteract those risks and allow the business to continue operating profitably. The risks fall into four categories: credit, market, operational and regulatory.

Financial businesses, such as banks and insurance companies, are required by law to conduct daily risk management. This level of pressure has foregrounded the role of the financial risk analyst.

What kinds of financial risks analysts are there?

Like most professional careers, becoming a financial risk analyst involves making choices about the type of role you want to undertake. In financial risk analysis you have four principal areas. Whether you call yourself a financial risk analyst or a financial risk manager, you will choose between credit, market, operational and regulatory risk analysis.

  • Credit risk analysts look at the risks of customers not paying for the goods or services they’ve ordered or defaulting on loans made to them
  • Market risk analysts identify how factors beyond the institution’s control could affect the share price of its ability to conduct its business
  • Operational risk analysts work in the area of internal factors, from catastrophic IT failures to employee crime
  • Finally, regulatory risk analysts assess the likely effects of new legislation.

How to enter the world of financial risk analysis

Unlike some business careers, becoming a financial risk analyst doesn’t always require a degree or an HND. However, in those cases, substantial commercial experience and professional qualifications will be required instead. For that reason, a relevant degree is a shortcut to the profession of risk analyst.

Degree subjects that may provide an advantage in terms of access to the better jobs in risk analysis include accountancy, economics, finance, law and statistics. Better yet would be a specialist risk management degree.

As a risk analyst, you can expect to find yourself working for organisations including banks, insurance companies, investment firms and large industrial or commercial organisations. The areas of operation that call for financial risk analysts range from sales, origination, trading and marketing to financial services and private banking.

What makes a good financial risk analyst?

As you might expect, to become a successful financial risk analyst or financial risk manager, the number one skill is a high level of numeracy. To dig down a little deeper, that means a familiarity with the full range of mathematical operations and the confidence to undertake sophisticated statistical analysis.

But many of your future colleagues, particularly as you go further up the management hierarchy, will not be as numerate as you are. Therefore, you will also need the ability to present complex mathematical concepts in straightforward terms so colleagues understand the risks they face and the solutions you have developed.

Financial risk analysis is a highly pressurised role, with banks and other financial institutions under record levels of scrutiny from shareholders, non-profits, regulators and the media. Alongside the technical skills, you will need a rigorous and unbending commitment to the highest standards of professional ethics.

As a qualified financial risk analyst or FRM, you can expect to earn a good salary in the range £29,000 to £74,000 according to discoverrisk.co.uk.

Related courses at City

Whatever your level of interest in becoming a financial risk analyst, City's courses can help you take one step closer to a career as a financial risk analyst, develop specialisms that'll set you apart from the field or broaden your horizons with study in related subjects.

  • BSc (Hons) Investment and Financial Risk Management

Related career pathways

  • How to become a data analyst
  • How to become an economist

Help us to improve this page

City, University of London

  • Library Services
  • Moodle
  • Email
  • Staff directory
  • Term dates
  • Book a room
  • Schools and departments

Back to top

Contact us

Make an enquiry

  • Twitter
  • Facebook
  • Instagram
  • LinkedIn
  • YouTube
  • Weibo
  • Youku
  • WeChat
Social media directory

Find us

City, University of London
Northampton Square
London EC1V 0HB
United Kingdom

Campus map

Our global campuses

  • London
  • Dubai
  • Athena SWAN: Bronze Award
  • UKRI Research England logo

Useful links

  • Accessibility
  • Privacy policy
  • Cookies
  • City Store
  • Support City
  • Work for City
  • City Magazine
  • 中文

© 2023 City, University of London

University of London