What Does a Risk Manager Do?
A Risk Manager identifies, assesses, and mitigates risks that could threaten an organization's financial health, reputation, or operations. They develop strategies and frameworks to minimize exposure to various types of risk. This role requires analytical thinking and a thorough understanding of regulatory requirements.
Other Job Titles for This Work
Workers in this occupation report titles such as Analyst, Equity Research Analyst, Risk Analyst, Risk Specialist, Securities Analyst.
Risk Manager Duties and Responsibilities
The primary responsibilities of a risk manager include:
- Identify and assess potential risks across financial, operational, strategic, and compliance categories.
- Develop and implement risk management frameworks, policies, and procedures.
- Conduct risk assessments and scenario analyses to evaluate potential impact on the organization.
- Design and recommend risk mitigation strategies and insurance coverage options.
- Monitor compliance with risk management policies and regulatory requirements.
- Prepare risk reports and present findings to senior management and the board of directors.
- Coordinate with department heads to integrate risk management into business processes.
- Manage the organization's insurance portfolio and oversee claims processing.
- Stay current on industry regulations, emerging risks, and best practices.
- Lead incident response and business continuity planning activities.
Required Skills and Qualifications
To succeed as a risk manager, you will need the following skills and qualifications:
- Risk assessment and analysis
- Regulatory compliance knowledge
- Financial modeling and quantitative analysis
- Insurance and claims management
- Business continuity planning
- Report writing and executive communication
- Enterprise risk management frameworks
- Analytical and critical thinking
Education and Training
Risk Manager roles typically require a bachelor's degree in finance, business administration, economics, or a related quantitative field. Many employers prefer a master's degree or professional certifications such as the Certified Risk Manager (CRM), Financial Risk Manager (FRM), or Professional Risk Manager (PRM). Specialized knowledge in areas like insurance, regulatory compliance, or cybersecurity risk is increasingly valued. Continuous education is important due to the evolving nature of risk landscapes across industries.
Salary and Job Outlook
Typical pay: $83,980 - $158,250 per year, with a median of $117,330.
The range covers the middle half of earners nationwide. Source: U.S. Bureau of Labor Statistics, Occupational Employment and Wage Statistics, May 2025, Financial Risk Specialists.
Risk management has become a top priority for organizations facing growing threats from cybersecurity breaches, regulatory changes, climate-related risks, and geopolitical instability. The demand for qualified Risk Managers is growing across financial services, healthcare, energy, and technology sectors. Professionals who combine traditional risk management expertise with knowledge of emerging risks such as artificial intelligence governance and climate risk are especially sought after. This field offers strong compensation and a clear path to executive-level positions such as Chief Risk Officer.
Risk Manager Pay Range
| Earners | Annual pay |
|---|---|
| Bottom 10% earn less than | $64,820 |
| Bottom 25% earn less than | $83,980 |
| Median (half earn more, half less) | $117,330 |
| Top 25% earn more than | $158,250 |
| Top 10% earn more than | $196,110 |
Highest-Paying States for Risk Managers
The states with the highest median pay for this occupation are New Hampshire ($158,320), Maine ($141,020), Delaware ($139,440), New York ($136,830), North Carolina ($132,040). Pay is lowest in North Dakota ($74,630), Arkansas ($66,110), Louisiana ($58,440).
Median pay in all 50 states with BLS data
| State | Median annual pay |
|---|---|
| Alabama | $81,750 |
| Alaska | $85,370 |
| Arizona | $102,800 |
| Arkansas | $66,110 |
| California | $129,110 |
| Colorado | $120,300 |
| Connecticut | $113,990 |
| Delaware | $139,440 |
| District of Columbia | $99,230 |
| Florida | $99,900 |
| Georgia | $100,570 |
| Hawaii | $89,860 |
| Idaho | $76,870 |
| Illinois | $104,300 |
| Indiana | $99,250 |
| Iowa | $105,680 |
| Kansas | $84,790 |
| Kentucky | $74,640 |
| Louisiana | $58,440 |
| Maine | $141,020 |
| Maryland | $117,130 |
| Massachusetts | $130,400 |
| Michigan | $103,940 |
| Minnesota | $105,420 |
| Mississippi | $96,100 |
| Missouri | $100,620 |
| Montana | $100,920 |
| Nebraska | $94,280 |
| Nevada | $100,010 |
| New Hampshire | $158,320 |
| New Jersey | $129,220 |
| New Mexico | $87,260 |
| New York | $136,830 |
| North Carolina | $132,040 |
| North Dakota | $74,630 |
| Ohio | $98,650 |
| Oklahoma | $85,140 |
| Oregon | $109,580 |
| Pennsylvania | $103,040 |
| Rhode Island | $104,470 |
| South Carolina | $99,520 |
| South Dakota | $78,960 |
| Tennessee | $90,950 |
| Texas | $103,760 |
| Utah | $77,770 |
| Virginia | $126,510 |
| Washington | $123,150 |
| West Virginia | $94,350 |
| Wisconsin | $97,820 |
| Wyoming | $119,550 |
Tools and Software Risk Managers Use
Tools and equipment
Software
Is This Job a Good Fit for You?
People who do well in this job tend to enjoy organized work with data, records and clear procedures as well as analyzing problems and working with ideas.
Preparation: O*NET places this occupation in Job Zone 4 of 5, which means considerable preparation.
Related Careers
These jobs use similar skills, according to O*NET's related-occupation data:
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Sources
- U.S. Bureau of Labor Statistics, Occupational Employment and Wage Statistics, May 2025.
- O*NET 30.1 Database, occupation 13-2054.00 (Financial Risk Specialists). View on O*NET OnLine.
This page includes information from the O*NET 30.1 Database by the U.S. Department of Labor, Employment and Training Administration (USDOL/ETA). Used under the CC BY 4.0 license. O*NET® is a trademark of USDOL/ETA. The Job Explorer has modified some of the information; USDOL/ETA has not approved, endorsed or tested these changes.