Why You Should Specialize in Risk as a Business Analyst in 2023

Introduction

As a business analyst, you know that risk is an ever-present reality in the financial services industry. However, you may not know that specializing in risk can help you build a successful career in banking.

In this blog post, we’ll explore the four main types of risk that business analysts must be familiar with which are credit risk, liquidity risk, market risk, and operational risk. We’ll also discuss why specializing in risk can be a smart move for your career, and how to get started.

What is Risk?

In financial services, risk refers to the potential for financial loss caused by a variety of factors, including changes in market conditions, economic downturns, and operational errors.

The Four Types of Risk

The four main types of risk that business analysts should be familiar with are:

1. Credit risk: the risk of a borrower defaulting on their loan, which can lead to losses on the bank’s lending portfolios.
2. Liquidity risk: the risk of a bank not having enough cash on hand to meet its obligations, which can be problematic during sudden fund withdrawals or market downturns.
3. Market risk: the risk of a bank’s investments losing value, which can be caused by changes in interest rates, currency fluctuations, or stock market volatility.
4. Operational risk: the risk of losses arising from inadequate or failed internal processes, people, and systems, which can include things like fraud, human error, and IT failures.

Why Specialize in Risk?

Specializing in risk can be a smart move for your career as a business analyst for several
reasons:

1. First, it’s a growing field. The financial services industry is increasingly focused on managing risk, and there is a growing demand for qualified risk professionals.
2. Second, it’s a challenging and rewarding field. Risk analysis requires a deep understanding of financial markets and institutions, as well as strong analytical skills. If you enjoy solving complex problems and making a difference in the world, then a career in risk could be a great fit for you.
3. Third, it can lead to high-paying jobs. Risk professionals are in high demand, and they can command salaries that are well above the average for business analysts.

How to Get Started

If you’re interested in specializing in risk, there are a few things you can do to get started:

1. First, get the right education. Several online and in-person courses can teach you the basics of risk analysis. At BST Consulting Limited, we have a new cohort starting on the 15th of July, 2023. This will enable you to learn about both risk management and business analysis in depth. Click here to read more about the training.
2. Second, gain experience. Look for opportunities to work on risk-related projects at your current job, or volunteer your services to a nonprofit organization. Again, this is another area where we can help. Our next cohort comes with opportunities for real life work experience. This will help you gain the required experience that you need to ace interviews and get the dream job.
3. Third, network with other risk professionals. Attend industry events, join professional organizations, and connect with people on LinkedIn.

Conclusion

Specializing in risk can be a great way to build a successful career in financial services. If you’re interested in this field, we encourage you to get the right education, gain experience, and network with other risk professionals. With hard work and dedication, you can achieve your goals and make a difference in the world.