Most financial companies have Enterprise Risk Management gr ... More »
In corporate finance, risk management divisions have many different employment opportunities. Risk Analyst is a title which can be found in many organizations referring to those who work to identify risks, document them in some type of risk log, and carry out assessments by measuring that particular risk and categorizing it11. One value a risk analyst brings is that of quantifying potential risks and prioritizing them so that higher exposure risks are tended to more than those who pose less risk of having a smaller chance of occurrence11.
Risk Managers or Risk Officers are very senior people who usually report to a Senior Executive or the CEO and are responsible for administering and managing all of the risk in the whole facility. A Risk Manager will usually plan appropriate risk responses and calculate the actions needed to deal with higher exposure risks 11. This individual would normally design the companies pro ... More »
STRATEGIES IN INSURANCE AND RISK MANAGEMENT
To assess and quantify risks, some professionals will use a point system or a color system. Once potential risks are identified, a team will go over each item and begin labeling it. In a numbering scheme, 100 might indicate a lower priority risk while a 300 might be a more threatening risk. In a color scheme, green colors might indicate less likely risk where bright red might be a more threatening or likely risk11.
To manage risk, many different strategies can be used. The company might do things differently, when possible, to avoid the risk altogether or use prevention tactics to keep an event from happening altogether 11. For example, one may never drive a car in order to avoid being responsible for an accident on the road.
Some people try to treat the risk 11 or reduce the adverse effects a risk could potentially incur 2 , which is the most common strategy used to deal with risk 11. This ... More »
8.) http://www.property-casualty.com/News/2009/8/Pages/New-RIMS-Committee-Bolsters-Standards- Practices-Profile.aspx
15.) Lee, Tony (2002). "2002: Rating the Nation's Best and Worst Jobs".
http://www.careerjournal.com/jobhunting/change/20020507-lee.html. Retrieved 2006-04-04.
16.) Nemko, Marty (2006). "Best Careers 2007". U.S. News & World Report. Archived from the original on 2007-12-26. http://web.archive.org/web/20071118105300/www.usnews.com/usnews/biztech/best_careers_2007/careertable-njs.htm. Retrieved 2008-09-14.
Although many factors will influence median salaries including company size, experience levels, education, and geographical area, some general trends have been found for various positions in risk management. According to survey data collected from thousands of varied employers and HR departments in varied geographical areas by Salary.com 4, the current median salary for professionals in risk management is $94,606. Interestingly, the salaries in risk management do not vary a tremendous amount with the size of the company, the way it does in most other industries. It has been found that smaller companies under, 25 employees, offer the lowest base salary on average, but it is still less than a $10,000 difference between the lowest and the highest paid salaries in companies with more than 15,000 employees 4.
Looking into more specific functions within risk management, 50% of reported Risk Managers make an annual base salary between $81,171 and $111,870, with the highest paid Risk Managers residing in the Northeast Region. At the director level, the median total reward goes up to just over $166,000 4. Within Credit Risk Specifically, the salaries are a bit higher with a median base salary at $120,991 and a median bonus of approximately $17,0004.
Actuaries at the entry level will begin with modest salaries at a median of $56,115 and a small 1-2% bonus. Because Actuaries have varying levels of responsibilities and seniority, those at the senior level have a median total reward of around $180,000 with the highest paid Actuaries residing in both the Northeast and the Southern regions of the US 4. The salary range for an Actuary is very much dependent on the company and the degree of responsibility for that particular employee, however it is safe to say that most Actuaries bring in close to or more than six-figure salaries14.
Underwriters, Insurance Agents and Claims Adjuster’s salaries follow a similar pattern to that of an Actuary’s salary because of the various levels of expertise, though these skill sets are not as highly paid even at the senior level. Entry level employees start at a median base salary of around $43,000 - $46,000 with a small bonus. Those who are more experienced have higher salaries with a median total reward at almost $100,000 for Underwriters and around $83,000 for Senior Claims Adjusters and Insurance Agents 4. The bonuses in these areas are modest, with the median bonus according to the U.S. National Average being between $1,700 and $3,400 4. There is also some variation between different domains. For example, a Life Insurance Underwriter might make slightly more than a Mortgage Underwriter or a Group Underwriter 4.
TIPS FOR GETTING HIRED IN INSURANCE IN RISK MANAGEMENT
In order to work in risk management, a bachelor’s degree in business or a related field is almost always required 2. Some degrees which have been found to be helpful for those interested in risk management and ideal for attracting potential employers include Finance, Accounting, Mathematics, Computer Programming, Complex Systems, and Statistics 13. Most employees in this area have some knowledge of statistics, data analysis, and data presentation skills 3. According to survey data collected from thousands of employers and HR departments in varied geographical areas by Salary.com 4, only about 11% of employees in risk management do not have their Bachelors Degree. Almost 35% of employees in this sector have gone on for a Master’s degree or an MBA, and just over 7% of the professionals in this field hold a JD/MD or PHD 4. Those who pursue advanced degrees or MBAs in the field normally experience ...More »
Insurance Brokerage Top 30 - Brokerage Revenues by 2008 Brokerage Revenue
|Rank||Company||2008 Brokerage Revenue||Location|
|1||Marsh & McLennan Companies - MMC||$5,297,360,000||New York, NY|
|2||Aon Corporation||2,558,500,000||Chicago, IL|
|3||Willis Group Holdings||1,781,860,000||New York, NY|
|4||Wells Fargo & Company||1,743,062,000||San Francisco, CA|
|5||Arthur J Gallagher & Co.||1,401,832,740|