What Does a Risk Management Analyst Do?

Insurance automatically incorporates risk. Whether you are insured for you home, your life, or even your occupation, insurance companies must calculate the risk and reward of every policy. Risk management analysts are essential to this process, but what exactly does a risk management analyst do? Keep reading to find out. Schools offering Risk Management degrees can also be found in these popular choices.

Job Duties

Insurance companies may insure vehicles, property, possessions, among other things, and with each policy there is a chance that an emergency may occur and the insurance company will need to cover the costs of repair, replacement, or legal liabilities. Risk management analysts or specialists are the individuals responsible for determining how much or how little risk there is for an insurance company to offer a policy to an individual, family, or business. The following are some of the main responsibilities held by risk management analysts.

Important Facts About Risk Management Analysts

Median Salary (2019) $66,526*
Job Outlook (2016-2026) 14% growth (for all management analysts)**
Required Education Bachelor's degree
Professional Certification The Certified Credit and Risk Analyst (CCRA) title available through the National Association of Credit Management (NACM)
Similar Occupations Account managers, financial analysts, office managers, senior auditors, underwriters

Sources: *PayScale.com, **U.S. Bureau of Labor Statistics

Compile Data

One of your first duties as a risk management analyst is to develop specific portfolios for individuals, organizations, and businesses. These portfolios must contain various risk assessments for life, health, and property. The risk assessments will be determined by a variety of criteria, which you will research and establish. These assessments will allow you to make recommendations on how to either avoid or reduce risk, as well as set claim amounts and premium costs.

Research Compliance Issues

You need to research and become well-versed in contractual and governmental policies that will help you in making sure that the risk factors for policies are legal and correct. You may also be asked to assist if there are any policy issues that require re-writes.

Maintain Interpersonal Relations

Most of a risk management analyst's job involves working as part of a team by interacting with managers, underwriters, researchers, and other staff. You might also be asked to communicate with clients to explain the reasoning behind a policy's risk determination. This skill also comes into play when explaining to a claimant or provider a claim's validity or lack thereof.

Analyze Incidents and Claims

Based on parameters established by the policy, you will analyze individual incidents and claims. In terms of claims for life and property, you might need to interact with police or emergency personnel. In researching claims for workman's compensation, you may be interviewing employers, employees, and medical personnel. This research will help you to determine if these claims are eligible for reimbursement. A risk management analyst takes the lead to find the root causes behind each claim, to find out if a claim has any validity. The report that you submit can be the basis for a settlement or, in some cases, further litigation.

Assist with Litigation Issues

In certain instances, you may be asked to participate and present your findings at meetings that are called to dispute a claim's validity. Sometimes, you might be asked to present your analysis at a hearing or civil trial. In these cases, you will usually be used as a witness for the provider.

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