How can I begin a career in risk management after B.Com?

A Bachelor of Commerce is an undergraduate degree provided for completing commerce and related subjects. A B.Com degree programme offers the students a vast range of managerial skills and an understanding of streams like Accounting, Business Law, Economics, Taxation, Management and Insurance. The University of Birmingham first offered this degree. In India, it takes 3 years to earn a B.Com degree in regular or distance mode. 

Your career growth can accelerate after completing the programme since different job opportunities for B.Com graduates exist in India and abroad. You can apply for the post of accountant as a fresher. This job is available in any company as every enterprise requires an accountant who can keep track of the company’s profit and loss. Besides the accountant post, you can work as an auditor, consultant, business analyst, business development trainee, company secretary, economist, financial officer, junior analyst, sales analyst, stockbroker, tax accountant and like. 

The job areas and sectors for B.Com graduates are also vast and overwhelming – Business Consultancies, Banks, Budget Planning, Educational Institutions, Foreign Trade, Industrial Houses, Inventory Control, Investment Banking, Policy Planning, Public Accounting Firms, Marketing, Merchant Banking, Treasury and Forex Department, and Working Capital Management. Follow along to determine if risk management is a good choice for a future career prospect after B.Com.

An overview of risk management 

Before diving deeper, let us check the answer to the question – what is risk management? Risk management is the procedure of detecting, assessing and controlling the risks to an enterprise’s earnings and capital. The threats or risks can stem from legal liabilities, financial uncertainties, strategic management menaces, technological issues, accidents, natural disasters etc. A risk management course helps individuals better understand and identify the full range of threats a company can face. It also examines the link between risks and the impacts those risks can have on the organisation’s goals. 

Risk management in modern organisations has become more complex due to the rapid change in globalisation; thus, it has gained more importance than ever. New risks emerge pretty often, generated mainly by the prompt use of digital technology. 

However, the pandemic is the most recent and continuing external threat to organisations worldwide, which heavily affected economies. It started as a supply chain threat and quickly evolved into an existential threat affecting the means of maintaining and sustaining a business, the health and safety of employees, the means of interaction with the customers, and corporate reputations.

Even though business entities are making rapid adjustments to the risks brought by the pandemic, authorities are taking a fresh perspective to handle their risk management procedure and examining risk exposure and processes. They are therefore reconsidering those who can handle risk management well. Companies protect past risks while changing risk handling procedures if a new risk causes trouble. 

In enterprises, risk management is a cross-functional and collaborative approach where the risk management team might consist of only five people. They work with the business leaders and staff to spread awareness, help them select the most efficient tools to consider and assess the risks, gather the information and present it to the board and executives. Risk managers should have a consulting mindset and be knowledgeable about the business mechanism, which is a prime focus in any B.Com degree course. 

A risk manager helps companies adopt numerous strategies to minimise risk against sudden accidents or changes. The job is to implement advanced measures to control the impact of any damaging implications in terms of physical or financial assets. Risk managers usually survey risk areas, analyse and advise companies and oversee the execution of probable solutions and measures.

Some risk management procedures are implemented throughout the whole organisation and are referred to as Enterprise Risk Management. It also covers the responsibilities of defining risk management policies, setting up the ability to handle risks for an organisation and managing the framework of risks. Another stream of risk management is Financial Risk Management (FRM). 

Financial risk managers are often needed in sectors and firms involving high-risk operations, like banking, legal consultancies, insurance, engineering etc. They help to protect the company’s resources by removing risks caused by faulty processes and provide practical measures to save them when facing unavoidable damages.

How can I become a risk management professional? 

The essential requirement for becoming a Risk Management Professional is graduating with a degree. However, you must also obtain a postgraduate degree to opt for high-paying important job profiles in reputed companies. Usually, graduates of any discipline can apply for Risk Management job posts. Yet, graduation in any stream is a must to apply for job profiles in risk management.

Students who want to pursue a future career in risk management can also take up higher studies in risk management after class 12th. The undergraduate courses in Risk Management are-

• B.Com in Risk Management
• BBA in Risk Management

The postgraduate courses in risk management are as follows-

• MBA in Risk Management
• PGD in Insurance Risk Management
• PGD in Risk Management
• International PGD in Risk Management

The Risk Management Association of India or RMAI suggests taking up some additional certificate courses to have a thorough understanding of the topic –

• CRICP or Certified Risk and Internal Control Professional offered by AICP of the Association of Internal Control Practitioners
• Courses offered by IRM or the Institute of Risk Management
• Certificate in Operational Risk Management delivered by IOR or the Institute of Operational Risk, UK

Will B.Com help for a career in financial risk management?

A degree in commerce might not be enough to get a competitive edge over others in risk management. Therefore it is necessary to choose to complete a master’s or specialisation to strengthen the knowledge you have already acquired from B.Com and to be eligible to apply for high-paying jobs. 

Since B.Com gives you a firm understanding of managing finance and an overall management idea, it would be helpful if you choose a career in financial risk management. An individual can opt for FRM along with a B.Com programme or decide to enrol in the course after completing the B.Com. 

Financial Risk Management requires evaluating and controlling the current probable financial risks to decrease an enterprise’s exposure to threats. The role involves identifying risks, measuring and considering all remedies, developing a sustainable strategy, and implementing instruments to minimise potential risks. Financial risk managers try to identify the company’s market, credit, liquidity, operational, and legal risks and analyse the threats associated with the assets, earning potential resources and bringing success to the business. Financial risk managers can find various job positions in sales, trading, financial services, marketing, loan organisation or private banking.

One can opt for the Financial Risk Management part 1 exam even if one is pursuing the final year of graduation. One has to complete the FRM Part-1 exam to take the FRM Part 2 exam to complete the certification. Since B.Com offers the same concept in finance, banking, accounting, corporate finance, economics and management, it helps you prepare for financial risk management courses. 

Other Risk Management courses closely related to B.Com are CERA or Chartered Enterprise Risk Analyst, CRM or Certified Risk Manager, PRM or Professional Risk Manager, and RIMS Fellow or Risk and Insurance Management Society Fellow.

READ MORE: Which is the better option after a B.Com? CFA or FRM

Top career options in risk management 

Career options in risk management are vast and can be divided as per the expertise and experiences of the individual and the specified sector they want to work.

• Enterprise Risk Manager: Their primary role is to look after the operations of a company. ERM involves all kinds of specialisation and expertise in Risk Management.
• Financial Risk Manager: Implementing strategies for an organisation to minimise potential risk on the financial assets is the fundamental responsibility of an FRM. Subjects like Market Risk, Liquidity risk, Credit Risk etc., fall under this job profile. It is one of the most profitable sectors in India.
• Operational Risk Manager: Managing losses or risks created by incorrect or faulty implementation and checking risks by inadequate human resource performance is the professional role of ORM. 
• Supply Chain Risk Manager: Identifying, assessing and mitigating risks in a company’s supply chain. The management involves brand reputation, finance, human resources etc.
• Digital Risk Manager: DRMs manage threats concerning technological risks in organisations, automation, data privacy etc. Digital risk managers use data analytics, automation, machine learning, digitised monitoring etc., to assess the risks involved in digital platforms and implement necessary strategies to handle the threat.

Businesses across all sectors try to minimise and find measures to control the probable negative impacts on the organisation. 

Leading companies who hire risk managers 

Even though all sectors need risk management professionals to minimise potential risks in the company, some enterprises feel a greater need to manage risks, but even sectors like law and policy also need professionals to develop risk management policies in the organisation. Some of the areas where Risk Management professionals are recruited are:

• Financial Institutions
• Manufacturing Companies
• Cyber Security Firms 
• Risk Management Consultancy Firms etc.

The top enterprises that hire risk managers in India are:

• PolicyBazaar
• SBI Life Insurance 
• Bajaj Allianz
• LIC etc.

Some popular risk management job positions are:

• Risk Manager
• Risk Analyst
• Safety Consultant
• Risk Surveyor
• Risk Management Advisor etc.

Enrol in online B.Com at Online Manipal to begin a career in risk management 

The online B.Com programme at Online Manipal is very flexible so that you can work on preparing for risk management roles while attending classes and can be completed from any proximity with only a laptop and high-speed internet connection. The course is more affordable than any on-campus B.Com degree programme, and you will be given real-time industry experience with scheduled corporate seminars, encounters and projects. The online B.Com fee is INR 80,000.

An Online Manipal degree is valid and is approved by UGC, NAAC and other statutory bodies under the educational council. It is also valid for a job in corporate, banking, and higher education.

Enrol in Manipal University Jaipur’s Bachelors of Commerce programme by submitting an application form on www.onlinemanipal.com with the necessary documentation.

Conclusion

Becoming a risk manager comes with its advantages and disadvantages. On the one hand, the job needs extensive planning and therefore is suitable for people with good analytical skills who can maintain and follow routines. The pay is lucrative for entry-level and experienced risk managerial positions. However, the cons of this position are that this career needs a commendable level of skill, and it is not easy to begin a career in this area. The profession demands long working hours, and the work schedules and responsibilities are not specific when it comes to emergencies. 
However, depending on your skills and career goals, you can best decide if risk management is the career you want to opt for in the future. Enrol in Online Manipal to get the best guidance in Risk Management to build a successful career in the sector.