Risk analysts are financial professionals who calculate risks for a company’s financial portfolios. These professionals help companies manage and increase their assets over time. If you want to pursue a career as a risk analyst, it’s helpful to know the key steps most risk analysts follow to secure a job in this industry.
In this article, we will discuss how to become a risk analyst in South Africa.
Table of Contents
What Is a Risk Analyst?
A risk analyst is a financial specialist who examines the risks associated with investments, new clients, economic conditions or regulations to determine whether it is safe to make a financial decision. They forecast potential outcomes and make recommendations to limit risks.
There are four types of risk analysts:
- Credit risk analysts: They analyse risks associated with customers who don’t pay for products or fail to reimburse their loans. Credit risk analysts work for commercial and investment bankers, rate agencies, or credit card lenders. They may also find employment with mortgage firms, insurance carriers or other financial service providers.
- Market risk analysts: They study the stock market’s potential impact on their company’s share prices. They often work for various financial institutions or investment companies or in the energy industry.
- Regulatory risk analysts: They assess the effect that new regulations or changes in legislation may have on the stock market and their organisation’s business or sector.
- Operational risk analysts: They help an organisation prepare for operational risks, such as product malfunctions or employee fraud, and develop contingency plans to manage them.
It is important to understand these types and learn how to become a risk analyst.
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What Does A Risk Analyst Do?
A risk analyst helps companies minimise the liabilities involved with business decisions by analysing economic conditions and financial documents and providing advice. They help companies they work for stay financially healthy.
Risk analysts may work for a bank or an insurance company to analyse prospective clients’ applications. They typically work directly with clients to evaluate their credit, payment methods, or job history and may communicate through credit officers. If the client is a business rather than an individual, analysts research the market and industry in which it operates to evaluate its competitors. They then provide a recommendation on whether their employers should conduct business with the client they have researched. They also connect with other professionals and institutions, including credit bureaus, to collect information and request missing data.
Risk analysts may also work for accounting companies or investment firms, where they identify investment trends and recommend strategies. Some investment methods they research include hedge funds or asset allocation. They may analyse portfolios and calculate potential losses, after which they recommend measures such as currency exchange or diversification to limit risk.
Depending on the type of company they work for, a risk analyst’s tasks might include:
- Collecting and consolidating data from different sources
- Reviewing data to determine risks
- Creating reports and summaries
- Writing procedures for documentation
- Developing quality control measures
- Finding and reporting asset losses
- Tracking and reporting investment trends
- Identifying business requirements
Risk Analyst Salary
A risk analyst’s average salary is R 513 817 per year. The salary of risk analysts may depend on location, experience, certifications and other relevant factors. Most risk analysts begin their career in a junior analytical position where they earn an average of R 363 143 per year.
After two to four years of experience, junior risk analysts may advance to analyst positions. With over 10 years of experience and the appropriate skills, analysts often advance to senior analyst or managerial roles.
Read more: A Guide to the Highest-Paying Jobs in Cape Town in 2026
How To Become A Risk Analyst in South Africa
Becoming a risk analyst involves a combination of formal education in quantitative fields, specialised certifications, and the development of technical skills to identify and mitigate financial, operational, or strategic risks.
Here are some steps you can take to become a risk analyst:
1. Earn a bachelor’s degree
Although it is possible to get an entry-level job in risk analysis with an associate degree, a bachelor’s degree may give you a competitive advantage over other candidates. Many employers prefer to hire risk analysts who have a bachelor’s degree.
Most risk analysts complete a bachelor’s degree in finance or another quantitative business field such as economics, statistics, accounting or mathematics. Courses in risk management, data analysis and investment provide information that can help you excel once you secure a job.
2. Gain work experience
Gaining experience allows you to learn skills that help you perform your tasks effectively as a risk analyst. You can gain experience by completing an internship at a financial firm. You can find internships by looking on job search platforms, meeting with your academic advisor or sending your resume directly to a firm that interests you.
3. Develop relevant skills
Here are a few skills to learn that can help you complete risk analyst tasks effectively:
- Financial knowledge: You can gain knowledge regarding risk management and compliance principles by paying close attention in your classes and reading relevant publications on finance and the economy.
- Attention to detail: This skill enables you to perform your tasks accurately. As a risk analyst, you may need to review large quantities of data to find the information you need. To improve your attention to detail, meticulously plan your work and avoid distractions while performing tasks.
- Familiarity with technology: This knowledge enables you to use statistical and other analytical tools effectively. Risk analysis often involves using various software and programs, so try to learn about the most common ones while still in school.
- Problem-solving: Risk analysts use problem-solving to determine the feasibility of different investments or loans. Carefully reviewing each potential solution to one challenge can help you develop your problem-solving skills.
- Communication: This skill helps you present complex concepts to colleagues or supervisors in simple terms. It’s important for risk analysts to clearly state the risks a company faces and recommend a path for a management group to follow.
4. Get a master’s degree in finance
Getting a master’s degree in finance, business administration, or other finance-related subjects may help you separate yourself from competitive applicants. Although employers don’t usually require it for entry-level positions, a master’s degree can increase your employment opportunities. Completing a postgraduate degree usually takes one or two more years of study after a bachelor’s degree.
Conclusion
From assessing financial risks to guiding organisations on safer investment choices, risk analysts play a vital role in maintaining financial stability and driving business success. By building the right educational foundation, gaining practical experience, and developing key analytical and technical skills, you can position yourself for long-term growth in this field.
With opportunities to advance into senior and specialised roles, risk analysis remains a rewarding and future-focused career choice in the dynamic financial landscape.
Explore Regenesys programmes to build your expertise in risk analysis. Apply now with Regenesys School of Economics and begin your journey today.
FAQs
What qualifications do you need to be a risk analyst?
Risk analysts typically require a bachelor’s degree in finance, economics, mathematics, or statistics, combined with strong quantitative and analytical skills.
Do risk analysts make good money?
Yes, risk analysts generally earn well and are well compensated for their expertise in managing financial or operational risks.
What skills do you need to be a risk analyst?
A risk analyst requires a mix of strong quantitative skills, proficiency in data analysis tools (SQL, Excel, Python/R), and critical thinking to evaluate financial or operational uncertainties.
Is a risk analyst a hard job?
Yes, a risk analyst position is often considered a challenging but rewarding career.
Is a risk analyst an entry-level job?
Yes, a risk analyst is frequently an entry-level position, often serving as a starting point for professionals in banking, insurance, and financial services.
How to become a risk analyst?
To become a risk analyst, earn a bachelor’s degree in finance, economics, or statistics, build technical skills in data analysis (Python, R, SQL), and obtain certifications.
