Credit risk analyst to financial risk manager
A credit risk analyst already meets 44% of what the financial risk manager role asks for. The move turns on 19 required skills not yet in the profile.
65.5/ 100
1 How much of what a financial risk manager is expected to do is already part of a credit risk analyst’s work. Directional: the figure for the reverse move differs, because moving into a speciality is not the same problem as moving out of one. 2 Every skill the financial risk manager role is recorded as needing, required and optional together. What these numbers mean.
Why this move works
A financial risk manager role treats 16 of its required skills as things a credit risk analyst already does. You would walk in with these on day one.
- advise on risk management
- analyse financial risk
- analyse market financial trends
- apply credit risk policy
- assess risk factors
- assessment of risks and threats
What stands in the way is 19 required skills the profile does not yet cover. Table 3 groups them; Table 4 says which to take first.
Table 2 · What you already bring
Of the 27 skills that carry over, these are the ones fewest other occupations ask for. A financial risk manager role needs them, and most people applying for one will not have them already. This is the part of a credit risk analyst background worth leading with.
- already held apply credit stress testing methodologies information skills
- already held create risk maps information skills
- already held manage currency exchange risk mitigation techniques information skills
- already held prevent fraudulent activities management skills
- already held create risk reports information skills
- already held risk transfer business, administration and law
All 27 carried skills, including the 16 the financial risk manager role treats as required.
Table 3 · What you may need to learn
The 37 missing skills fall into 6 areas of the ESCO skill hierarchy, numbered in the order worth working in. Areas carrying the most required skills come first, and inside each one the required skills sit above the optional ones. Nothing here is a verdict on you: it is a list of what this particular job asks for that your current one does not.
- still to learn analyse external factors of companies required
- still to learn analyse internal factors of companies required
- still to learn collect financial data required
- still to learn estimate profitability required
- still to learn interpret financial statements required
- optional, not held develop predictive models optional
- optional, not held prepare credit reports optional
- optional, not held analyse economic trends optional
- optional, not held analyse financial performance of a company optional
- optional, not held assess risks of clients' assets optional
- optional, not held calculate dividends optional
- optional, not held maintain financial records optional
- optional, not held prepare financial statements optional
- optional, not held provide support in financial calculation optional
- still to learn create a financial plan required
- still to learn enforce financial policies required
- still to learn integrate strategic foundation in daily performance required
- still to learn make strategic business decisions required
- still to learn strive for company growth required
- optional, not held control financial resources optional
- still to learn management consulting required
- still to learn financial statements required
- still to learn securities required
- still to learn tax legislation required
- optional, not held accounting department processes optional
- optional, not held financial department processes optional
- optional, not held risk financing techniques optional
- optional, not held treasury management system optional
- optional, not held banking activities optional
- optional, not held financial products optional
- optional, not held international financial reporting standards optional
- still to learn advise on financial matters required
- still to learn advise on tax policy required
- still to learn liaise with managers required
- optional, not held disseminate information on tax legislation optional
- still to learn follow company standards required
- still to learn digital data processing required
Table 4 · Where to start
The 3 entries a financial risk manager role is least likely to hire without. The ordering is computed from the skill data, not from what pays.
- 01 digital data processing practise this
- 02 management consulting study this
- 03 advise on financial matters practise this
Each entry opens a course search for that skill. Career Overlap earns nothing from these links.
Appendix · The rest of the record
All 27 skills that carry over
- already held advise on risk management skill
- already held analyse financial risk skill
- already held analyse market financial trends skill
- already held apply credit risk policy skill
- already held assess risk factors skill
- already held assessment of risks and threats knowledge
- already held create risk maps skill
- already held create risk reports skill
- already held economics knowledge
- already held financial analysis knowledge
- already held financial forecasting knowledge
- already held financial management knowledge
- already held manage financial risk skill
- already held risk identification knowledge
- already held risk management knowledge
- already held risk transfer knowledge
- already held Monte Carlo simulation knowledge
- already held apply credit stress testing methodologies skill
- already held apply statistical analysis techniques skill
- already held carry out statistical forecasts skill
- already held create solutions to problems skill
- already held deliver visual presentation of data skill
- already held manage currency exchange risk mitigation techniques skill
- already held negotiate sales contracts skill
- already held perform data analysis skill
- already held prevent fraudulent activities skill
- already held produce statistical financial records skill
18 supplementary skills, helpful but not required
- optional, not held develop predictive models optional
- optional, not held accounting department processes optional
- optional, not held financial department processes optional
- optional, not held prepare credit reports optional
- optional, not held risk financing techniques optional
- optional, not held treasury management system optional
- optional, not held analyse economic trends optional
- optional, not held analyse financial performance of a company optional
- optional, not held assess risks of clients' assets optional
- optional, not held banking activities optional
- optional, not held calculate dividends optional
- optional, not held control financial resources optional
- optional, not held disseminate information on tax legislation optional
- optional, not held financial products optional
- optional, not held international financial reporting standards optional
- optional, not held maintain financial records optional
- optional, not held prepare financial statements optional
- optional, not held provide support in financial calculation optional
13 held skills the financial risk manager role does not ask for
- not needed by the target role analyse the credit history of potential customers skill
- not needed by the target role apply information security policies skill
- not needed by the target role debt collection techniques knowledge
- not needed by the target role enforce customer's debt repayment skill
- not needed by the target role financial jurisdiction knowledge
- not needed by the target role have computer literacy skill
- not needed by the target role information confidentiality knowledge
- not needed by the target role inspect data skill
- not needed by the target role international commercial transactions rules knowledge
- not needed by the target role show diplomacy skill
- not needed by the target role speak different languages skill
- not needed by the target role teamwork principles knowledge
- not needed by the target role write work-related reports skill
11 gaps that are knowledge rather than practice
Knowledge gaps usually close through study. Practical skill gaps usually need something you can point at.
- still to learn management consulting required
- still to learn financial statements required
- still to learn securities required
- still to learn tax legislation required
- optional, not held accounting department processes optional
- optional, not held financial department processes optional
- optional, not held risk financing techniques optional
- optional, not held treasury management system optional
- optional, not held banking activities optional
- optional, not held financial products optional
- optional, not held international financial reporting standards optional
Common questions about this move
Can a credit risk analyst become a financial risk manager?
Yes, and it is a substantial move. A credit risk analyst already covers 44% of what a financial risk manager is expected to do: 27 skills carry over, 16 of which the financial risk manager role treats as required.
What skills does a credit risk analyst need to become a financial risk manager?
19 required skills are missing, plus 18 optional ones. They fall into 6 areas of the ESCO skill hierarchy, led by information skills. The single most important is digital data processing.
How hard is the move from credit risk analyst to financial risk manager?
Its learning distance is 65.5 out of 100, which is the substantial band. That accounts for both how much is missing and how specialised those skills are.
How this record was compiled
Both occupations are taken from ESCO, which lists the skills and knowledge each occupation is expected to have and marks every one required or optional. Nothing here is a prediction about hiring, and nothing here knows that a particular employer wants a particular certificate. Treat Table 3 as a starting point for your own research rather than a syllabus. The full method states what these figures can and cannot tell you.