A credit risk analyst plays an important role with businesses and even individuals apply for bank loans. If you are interested in working in finance, learning more about the role of risk analysts will help you decide if this is the title that you would like to work towards. The finance sector is a huge one, and there is a growing need for analytical candidates who possess formal degrees and the right skills to fill analyst roles. Read on, and learn more about the duties of an risk analyst and how you can get qualified before you begin the application process.
What Does a Credit Risk Analyst Do and Where Do They Work?
Generally, a risk analyst who reviews credit applications will work directly for small or large banks or credit unions. As an employee of a commercial or investment bank, a risk analyst in the field of credit analysis will receive applications that they must evaluate and assess to determine if the applicant or the business is creditworthy, according to Investopedia.
To determine is a business is worthy of being extended credit, a risk analyst will gather financial data about the applicant that will paint a big picture about the client’s likelihood to repay. Some of this data includes repayment histories, income, savings, and buying activities. If the client has defaulted on loans, does not have enough earnings, or has a high debt ratio, there is a chance that the credit analyst to deny the application or request more information.
How to Become a Credit Analyst
If you think that you have what it takes to review applications and determine which loans are good risks, you will need to meet specific educational requirements. While the requirements vary from bank to bank, most prefer that you have a minimum of a bachelor’s degree before your application and resume will even be looked at. You should have an accredited degree majoring in accounting, finance or another field that is relevant.
It is possible to get lucky and land an entry-level position with no degree if you find a bank that will provide you with in-depth training. Companies who hire candidates without a degree may offer lower salaries, but will prefer applicants with a proven track record in a finance setting. You need to be sure that finance is the right field for you before you start to study for your degree.
Job Outlook in Credit Analysis
If you want to enter a new field, you should always see what direction the field is in by researching job outlook. According to the Bureau of Labor Statistics, the field is expected to grow by nine percent in the next seven years. This is average based on the national average. Some of the larger commercial and investment banks have a high demand for analysts because of all of the loans that they offer. With lending restrictions getting tighter than ever, the need may grow in the commercial sector.
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If you are good at analyzing data and making tough decisions, you may be a perfect candidate. You should consider your skills, your strengths and if you want to work in the sector before you make major moves. Review different finance programs, learn how to review financial statements and assess risk, and then you can market yourself for openings for credit risk analyst position.
