Failure to be paid by clients and customers is a common problem which can affect all types of businesses. That possibility is called Credit Risk and it can arise from financial difficulties felt by a client, or can be attributed to broader circumstances, such as an economic crash. If businesses conduct a large portion of their business with just a few big clients, or export goods or services to just one or two countries, they are likely to have a much bigger credit risk. The possibility of credit becoming an issue is increased. Jobs in Credit Risk involve the development, monitoring and validation of credit risk models and the research and analysis of businesses. As a credit risk analyst you will be expected to provide statistical information to assist in the process of analysis, undertake risk assessment analysis of various lending proposals, analyse market trends, make recommendations to reduce credit risk, use financial software packages, produce regular analysis reports, protect the businesses assets and stay up to date with legislation affecting the business. Skills expected of credit risk analyst candidates include a high standard of numeracy, analytical skills, thorough research skills, excellent IT literacy, good interpersonal and team-working skills, the ability to be decisive, problem-solving, negotiation and the ability to cope with tremendous pressure and responsibility. Most training for a job as a credit risk analyst is conducted on the job. Some employers run in-house training sessions related to their sector, and some also offer training and awards accredited by external institutions, such as Institutes of Credit Management. On top of credit risk measurement and management, these courses are likely to cover areas about quantitative analysis and market risk management. Some businesses will let credit risk analysts study at diploma/master's level. Credit risk analysts are employed at a wide variety of financial institutions and pay will generally reflect the environment they are working in. A starting salary in the region of twenty thousand pounds to thirty five thousand pounds can be expected, rising to eighty thousand pounds or even more based on experience, seniority and ability. Credit Risk is a great area to consider for a career, and it is a highly respected and valued profession. With the right experience and enough knowledge of the sector, you could find yourself high flying relatively quickly as you ascend through a financial institution. Particularly in these times of financial uncertainty credit risk analysts will become more and more important for businesses who hope to survive the credit crunch.
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