Risk Management

Start a Career in Financial Risk Management

February 23, 2021 by Tim McMahon

If you are business-minded and good with numbers, consider making a career change to financial risk management (FRM).

As the name suggests, a risk management analyst assesses strategies for businesses and determines appropriate risks. So, how do you start a financial risk management career?

Understanding Financial Risk Management

There’s almost always a risk when it comes to spending money. Typically, businesses and organizations have guidelines to manage those risks and attempt to protect their financial interests.

The roles of financial risk management specialists are:

predicting market trends that relate to the company
using risk management tools to study potential financial risks
potentially influencing company decisions

There are several categories of [Read more…] about Start a Career in Financial Risk Management

Why Credit Risk Management Matters in a Post-Recession World

October 2, 2019 by Tim McMahon

The financial crisis of 2008 is considered by many to be the worst since the Great Depression. A number of large firms that had been in existence for decades went under with little warning that they were going to fail. Therefore, it is important for companies to be aware of credit risk (aka. default risk) management possibilities in the aftermath of such a calamity.

It’s Important to Be Proactive

There are never any guarantees that a client will pay his or her bills on time. In fact, there is no guarantee that a client will pay any portion of an outstanding balance. However, using credit risk management tools can help you predict which customers are likely to live up to their obligations and which ones are less likely to. This can help your company minimize its losses and create objective criteria as to what a quality client or customer looks like.

You Can Prepare to Make Claims in Bankruptcy Court

If you can predict ahead of time that [Read more…] about Why Credit Risk Management Matters in a Post-Recession World

How Companies Can Monitor and Anticipate Financial Trends

January 10, 2018 by Tim McMahon

Current and future financial trends play a massive role in the success or failure of businesses. Unless a company can accurately predict financial trends, it can be difficult to manage many aspects of a company, from sales to supplier sourcing. Imagine a company embarking on a new adventure to rehab and flip houses in 2008. The banking crisis that ensued would have guaranteed their failure. On the other hand it might have been a good time to open a business to help retrain laid-off workers for new positions. The following guide explores some of the methods that companies use to monitor and anticipate financial trends.

Internal Analysts

Large companies often have analysts that monitor a variety of market conditions. [Read more…] about How Companies Can Monitor and Anticipate Financial Trends