Operational Risk Analyst
Identifies, assesses, and mitigates operational risks across the bank including process failures, system outages, fraud, and human error, maintaining the operational risk framework and loss event database.
From people doing the work
Day-to-day involves a lot of detective work, digging into processes, and collaborating with different departments to understand where things could go wrong. It's about being proactive, anticipating potential issues, and building robust controls to protect the organization. You need to be detail-oriented but also see the bigger picture of how risks impact the business. It can be challenging to get everyone on board with new controls, but ultimately, it's to safeguard the company.
Drawn from GARP, PRMIA, Risk.net
Attribution: Composite
Composite · Synthesised from GARP, PRMIA, Risk.net
A day in the life of an Operational Risk Analyst
- People interaction
- Extensive
- Team vs solo
- 45% Team / 55% Solo
- Client facing
- Rarely
- Impact visibility
- High
- Travel
- Low
- Schedule flexibility
- Moderate
- Remote work
- Mostly Remote
- Typical work hours
- 42-50
- Stress level
- Moderate
Operational Risk Analyst salary, education and outlook at a glance
- Median salary
- $95,000
- Entry-level
- $62,000
- Senior
- $148,000
- Growth by 2033
- 5%
- Demand
- Growing
- Freelance potential
- Very Low
- Salary growth potential
- 139%
- Typical student debt
- Moderate
Skills you need as an Operational Risk Analyst
Hard skills
- RCSA (Risk & Control Self-Assessment)
- Loss Event Analysis
- Key Risk Indicators (KRIs)
- Scenario Analysis
- Basel III Op Risk Framework
- GRC Tools
- Process Mapping
Soft skills
- Analytical Thinking
- Communication
- Stakeholder Management
- Attention to Detail
- Problem Solving
Technical complexity: High
Tools of the trade
Core tools
- Archer GRC (Software): Manages risk assessments, controls, and compliance activities for operational risk.
- MetricStream GRC (Software): Provides integrated risk management solutions for operational risk and compliance.
- IBM OpenPages (Software): Offers a comprehensive platform for governance, risk, and compliance management.
Commonly used
- Microsoft Excel (Software): Used for data analysis, tracking, and reporting of operational risk metrics and incidents.
- SQL (Language): Queries and manages data in risk databases for analysis and reporting.
Specialist tools
- Power BI (Software): Creates interactive dashboards and reports for visualizing operational risk data.
- Python (Language): Automates data analysis tasks and develops custom risk models.
How to become an Operational Risk Analyst
- Minimum education
- Bachelor's in Finance, Business, or Risk Management; FRM or CRISC valued
- Licensing
- No
- Years to mid-career
- 4-4
- Years to senior
- 10-10
- Career switching
- Easy
Where this career leads
How people arrive here
- Compliance Analyst: Professionals with a strong understanding of regulatory requirements can transition into operational risk by focusing on internal process failures.
- Internal Auditor: Auditors with experience in process review and control testing can move into operational risk by focusing on proactive risk identification.
- Financial Analyst: Analysts with strong analytical skills can apply their expertise to quantify and model operational risks.
Where you can go from here
- Enterprise Risk Manager: Operational Risk Analysts can advance to manage broader enterprise-wide risks, integrating various risk types.
- Risk Consultant: With deep expertise, analysts can advise multiple organizations on improving their operational risk frameworks.
- Regulatory Affairs Specialist: Understanding operational risks helps in interpreting and ensuring compliance with financial regulations.
Typical progression
- Op Risk Analyst
- Senior Op Risk Analyst
- VP of Operational Risk
- Director
- Head of Operational Risk
Operational Risk Analyst job outlook and future demand
- Automation probability
- Low
- AI disruption risk
- Moderate
- Demand trend
- Growing
Job satisfaction as an Operational Risk Analyst
- Overall satisfaction
- 6/10
- Meaning
- 6/10
- Work-life balance
- 7/10
- Prestige
- 7/10
- Social perception
- Moderate
Where practitioners gather
Professional organisations
- GARP (Global Association of Risk Professionals): A leading association for risk management professionals, offering certifications and resources.
- PRMIA (Professional Risk Managers' International Association): An international association providing education and networking for risk managers.
Podcasts and media
- Risk.net: A financial risk management news and analysis publication.
- OpRisk & Regulation Magazine: A magazine focused on operational risk and regulatory compliance in financial services.
Online communities
- Operational Risk Management LinkedIn Group: A professional networking group for discussions and insights on operational risk management.