We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What does a Risk Analyst do?

Margo Upson
Updated Mar 02, 2024
Our promise to you
Practical Adult Insights is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At Practical Adult Insights, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject-matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

A risk analyst, also known as a risk manager, is responsible for evaluating and reducing potential risks to the financial well being of a company or other organization. Analysts are responsible for protecting a company from any potential harmful situations. Risk analysis is a career requiring a lot of specialized training and the ability to review and understand vast amounts of data in a short amount of time. Analysts may work in many sectors of the economy, including private banking, sales, and trading.

Risk analysts typically work in one of four specialties. An operational risk analyst studies companies to watch for any large-scale issues that may have an impact on the overall company, such as employee fraud. Credit risk analysts determine the probability of a company's clients not paying for the services and products provided, and how that might affect the company. Market risk analysts help a company avoid outside influences that may have a negative affect on the company, such as changes in the competition. Regulatory risk analysts follow any changes in legislature that may affect the company.

The daily tasks of a risk analyst differ depending on the analyst's specialty. Several of the daily tasks, however, are similar through all the specialties. A risk analyst studies data and then predicts future trends that may affect a company or organization, and then also determines how the company can minimize those changes that may be negative. Protecting the company's assets and public image may be another part of the job. This may include looking over legal papers, managing resources, and performing examinations of the company's current financial status.

Not every risk analyst works with finances. Probabilistic risk assessment analysts are responsible for understanding the risks involved in things like airplanes, space shuttle launches, and nuclear power plants. There are three areas that analysts will study. The first is what could go wrong. The second is how badly things could go wrong, and the third is the probability of those negative events happening.

Risk analysts work with statistics and advanced mathematical formulas to give companies an accurate idea of their financial outlook with as much detail as possible. Companies need to know the potential benefits and risks involved in any move that may affect their finances, and risk analysts can provide that information. Working with numbers and probabilities, risk analysts give companies an accurate look at what the possibilities for their business are.

Practical Adult Insights is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Margo Upson
By Margo Upson
With a vast academic background that has ranged from psychology and culinary arts to criminal justice and education, Margo Upson brings a wealth of knowledge and expertise to her role as a Practical Adult Insights writer. Her wide-ranging interests and skill at diving into new topics make her articles informative, engaging, and valuable to readers seeking to expand their knowledge.
Discussion Comments
By anon353530 — On Oct 31, 2013

Great article- I just wanted to ask a question. Does a risk analyst have to have an MBA? I want more insight on risk management.

By comfyshoes — On Jul 12, 2010

Sunny27- For entry level positions a four year degree with a concentration in economics, finance and statistics is all that is required. For more advanced positions an MBA is a must.

By Sunny27 — On Jul 12, 2010

Great article- I just wanted to ask a question. Does a risk analyst have to have an MBA?

Margo Upson
Margo Upson
With a vast academic background that has ranged from psychology and culinary arts to criminal justice and education,...
Learn more
Practical Adult Insights, in your inbox

Our latest articles, guides, and more, delivered daily.

Practical Adult Insights, in your inbox

Our latest articles, guides, and more, delivered daily.