Recruitment and hiring are a key component of any successful financial firm. Most human resource departments in the financial industry have to compete with other firms for top talent. Depending on the position, such as managing director, derivatives trader or risk analyst, finance companies will fight for the best with attractive salary and benefits.
Large Investment Means Large Risk
Why are financial companies recruiting certified risk analysts so much? Well, when it comes to finance and managing investments of large quantities, risk is extremely important. After all, financial firms exist to make more profits, not losses. To stay ahead of the competition, they invest in people who are proficient in risk management and assessment.
Risk Analyst Role
Risk analysts have certain job duties, as with any other job. These risk analyst responsibilities can vary from position to position at different employers. However, there are certain skills and tasks that all risk analysts need to be proficient in. You do not want to be forced to pay for a new hire’s business analyst training. Risk analysts must be able to make recommendations to reduce risk. They will also be responsible for calculating risk from specific, individual transactions. Risk analysts must also be prepared to research impacts of proposed business decisions and determine the viability of those decisions. These are just a few of the many job responsibilities that risk analysts are responsible for. Keep this risk analyst job profile in mind when determining whether these job duties are indispensable to your business operations.
Risk Analyst Certification
When hiring a certified risk analyst, human resource departments look for certifications from the American Academy of Financial Management, or AAFM. They provide certified risk analyst training and certification. This ensures a human resource department that the candidate has a fundamental understanding of the concepts needed on the job.
While there are other risk analyst training programs and certifications offered by various organizations like the Risk Management Association, the most popular certifications include Credit Risk Analyst (CRA), Credit Risk Certification and Financial Risk Analyst. These are all designations given to individual certified in risk.
Rigorous Hiring Process
To further qualify the certified risk analyst, you may want to perform a rigorous hiring process. That way, you hire applicants that have the best skills necessary for the job, not just the applicants that impress a hiring manager with their personable, friendly nature. This may include multiple rounds of interviews, consisting of soft skills, technical skills and culture fit activities. There are many ways to eliminate lazy candidates by having a thorough hiring process.
Qualifications To Keep In Mind For Interviews
Before you get started with your rigorous hiring process, you need to know how to source top talent and what to look for in a candidate. Of course now that you narrowed down the field to only those with a CRA certification or similar, you already have a great talent pool to choose from. But remember to keep these other factors in mind to find the best risk analyst for your business.
- At least a Bachelor’s degree in the field, preferably a graduate degree
- At least 5 years experience or more
As long as the applicants you plan to interview meet these two criteria and have their Credit Risk certification, you are sure to hire a top risk analyst for your company.
To financial companies, risk analysis and management has become a competitive advantage. There are plenty of lessons to learn from companies with competitive advantage. But once you have a competitive advantage, you will be the one others are looking to. Since the risk tools and data can only be analyzed by a human mind, it is essential to attract the top talent to your firm. As a successful human resource department, not only will you find the best candidates and hire them, but also keep them happy afterwards.