What does a risk advisor do?

I've been thinking about a career in finance and risk management sounds interesting. Can someone explain the role of a risk advisor? What kind of qualifications and skills are usually necessary for this position, and how can I prepare?

A risk advisor, also known as a risk management consultant or risk analyst, primarily focuses on identifying, assessing, and managing potential risks that could adversely affect a company's business objectives and critical functions. This includes financial risks, operational risks, reputational risks, strategic risks, and so on. The advisor can then propose strategic solutions to minimize, monitor, and control these risks.

The risk advisor's role can be quite diverse, varying according to the specific industry and company that they work for. However, across industries, they're responsible for a set of common tasks such as – analyzing and evaluating a company's risk exposure, creating risk management policies and procedures, advising management on ways to control and mitigate risks, conducting risk assessment training, and engaging in crisis recovery in case of occurrence of risk events.

As for qualifications, a bachelor's degree in finance, economics, business, or a related field is typically required, with some positions preferring or requiring advanced degrees (master's or higher) or certifications in risk management like the Certified Risk Manager (CRM) or the Professional Risk Manager (PRM). Certain tangible skills are critical to excel in this role including strong analytical skills, problem-solving, decision-making abilities, and knowledge of risk assessment tools, and statistical analysis tools like SAS, R, or Python.

Apart from quantitative skills, it's important to have good interpersonal and communication skills, as risk advisors often have to explain complex information to those who may not have a deep understanding of finance. Good consulting and project management skills are also beneficial since risk advisors often work on a project basis and need to manage their time and resources effectively.

In terms of preparation, gaining relevant experience through internships or entry-level positions in finance or risk management can provide you with an understanding of the industry and help develop essential skills. Expanding your knowledge through continuous learning and staying abreast of the latest industry trends can also be helpful.

Please remember, like any field, and especially those that can be broadly applied like risk management, exact requirements will vary depending on the particulars of the job and organization. Therefore, it's a good idea to analyze specific job postings to get clarity on what is required of a risk advisor in specific settings.