Financial Risk Analyst in Arkansas Career Overview

As a Financial Risk Analyst, you play a vital role in assessing and mitigating risks that could impact an organization’s financial health. Your responsibilities encompass a range of activities that contribute to informed decision-making and strategic planning.

  • You evaluate various types of financial risks, including credit, market, liquidity, and operational risks.
  • By analyzing complex data sets and financial models, you provide insights and recommendations that help organizations allocate resources more effectively and manage unexpected challenges.
  • Your work often involves collaborating with other departments, such as finance, compliance, and operations, ensuring that risk management strategies align with the overall business objectives.
  • You also monitor regulatory developments and market trends, enabling your organization to remain compliant and competitive in a continuously changing financial landscape.
  • Your analyses help safeguard organizational assets, optimize earnings, and enhance long-term financial stability and performance.

The importance of your role extends beyond mere analysis; you contribute to fostering a culture of risk awareness within the organization. By identifying potential vulnerabilities and recommending preemptive strategies, you help secure the organization’s ability to navigate uncertainties and pursue growth opportunities safely.

Financial Risk Analyst Salary in Arkansas

Annual Median: $60,390
Hourly Median: $29.04

Data sourced from Career One Stop, provided by the BLS Occupational Employment and Wage Statistics wage estimates.

Required Education To Become a Financial Risk Analyst in Arkansas

To become a Financial Risk Analyst, you are typically required to obtain a bachelor's degree, although many employers may prefer or require a master's degree. Here are some relevant degree programs that can provide the education necessary for this career:

  • Bachelor’s Degree in Accounting and Finance
    This program equips you with foundational knowledge in financial principles, accounting practices, and analytical skills essential for assessing financial risks.

  • Bachelor’s or Master’s Degree in Analysis and Functional Analysis
    This degree focuses on mathematical and statistical methods used in various analyses, providing you with a strong analytical framework necessary for risk evaluation.

  • Bachelor’s or Master’s Degree in Financial Forensics and Fraud Investigation
    This program concentrates on the examination and prevention of financial crimes, offering specialized skills to identify and mitigate financial risks associated with fraud.

  • Bachelor’s or Master’s Degree in Financial Mathematics
    A degree in Financial Mathematics prepares you to apply mathematical techniques to finance, enhancing your ability to model and analyze financial risks accurately.

  • Master’s Degree in Financial Risk Management
    This advanced degree specifically focuses on the techniques and strategies used in identifying, assessing, and mitigating financial risks, preparing you for senior roles in risk analysis.

In addition to formal education, internships or practical experience in finance or risk management can be beneficial for furthering your qualifications in this field.

Best Schools to become a Financial Risk Analyst in Arkansas 2024

#1Wake County

Wake Technical Community College

Raleigh, NC

In-State Tuition:$2,432
Out-of-State Tuition:$8,576
Admission Rate:N/A
Graduation Rate:31%
Total Enrollment:21,551
#2St. Louis County

Washington University in St Louis

Saint Louis, MO

In-State Tuition:$59,420
Out-of-State Tuition:$59,420
Admission Rate:12%
Graduation Rate:94%
Total Enrollment:17,012
#3Cumberland County

Fayetteville Technical Community College

Fayetteville, NC

In-State Tuition:$2,432
Out-of-State Tuition:$8,576
Admission Rate:N/A
Graduation Rate:16%
Total Enrollment:10,233
#4DuPage County

DeVry University-Illinois

Naperville, IL

In-State Tuition:$14,392
Out-of-State Tuition:$14,392
Admission Rate:43%
Graduation Rate:43%
Total Enrollment:26,384
#5Los Angeles County

University of Southern California

Los Angeles, CA

In-State Tuition:$63,468
Out-of-State Tuition:$63,468
Admission Rate:12%
Graduation Rate:92%
Total Enrollment:48,945
#6Merrimack County

Southern New Hampshire University

Manchester, NH

In-State Tuition:$15,000
Out-of-State Tuition:$15,000
Admission Rate:96%
Graduation Rate:41%
Total Enrollment:164,091
Financial Risk Analyst Job Description:
  • Analyze credit data and financial statements of individuals or firms to determine the degree of risk involved in extending credit or lending money.
  • Prepare reports with credit information for use in decisionmaking.

Financial Risk Analyst Required Skills and Competencies in Arkansas

  • Analytical Thinking: You must have the ability to interpret complex financial data and identify trends, patterns, and anomalies. Strong analytical skills enable you to assess risks and make informed decisions based on quantitative information.

  • Quantitative Skills: Proficiency in statistical analysis and mathematical modeling is essential. Familiarity with financial metrics and the ability to conduct simulations will support your assessments of risk scenarios.

  • Attention to Detail: A keen eye for detail is necessary when analyzing data and preparing reports. This skill helps in identifying potential discrepancies that could impact risk evaluation.

  • Problem-Solving Abilities: You should be adept at identifying potential problems and developing effective strategies to mitigate these risks. This often involves critical thinking and innovative approaches to risk management.

  • Communication Skills: The ability to convey complex financial concepts in a clear manner is vital. You will often prepare reports and presentations for stakeholders, requiring strong written and verbal communication skills.

  • Technical Proficiency: You need to be skilled in using financial software and analytical tools, such as Excel, SAS, R, or Python. Familiarity with risk management software to monitor potential risks is also important.

  • Understanding of Financial Instruments: A strong grasp of various financial instruments, including derivatives, equities, and fixed income securities, enables you to evaluate their risk profiles effectively.

  • Regulatory Knowledge: Being aware of financial regulations and compliance requirements relevant to the industry will help you navigate the complex landscape of financial risk.

  • Project Management Skills: You may need to manage multiple projects simultaneously, requiring strong organizational skills and the ability to prioritize tasks effectively.

  • Teamwork and Collaboration: You will collaborate with various departments, such as finance, compliance, and operations. Flexibility and the ability to work well in a team environment are important for successful outcomes.

Job Duties for Financial Risk Analysts

  • Analyze credit data and financial statements to determine the degree of risk involved in extending credit or lending money.

  • Complete loan applications, including credit analyses and summaries of loan requests, and submit to loan committees for approval.

  • Generate financial ratios, using computer programs, to evaluate customers' financial status.

Technologies and Skills Used by Financial Risk Analysts

Enterprise resource planning ERP software

  • Microsoft Dynamics
  • SAP software

Financial analysis software

  • CGI-AMS Strata
  • Moody's KMV Risk Advisor

Presentation software

  • Microsoft PowerPoint

Basic Skills

  • Figuring out how to use new ideas or things
  • Thinking about the pros and cons of different ways to solve a problem

Problem Solving

  • Noticing a problem and figuring out the best way to solve it

Job Market and Opportunities for Financial Risk Analyst in Arkansas

  • The demand for Financial Risk Analysts in Arkansas is on the rise due to the increasing need for organizations to manage financial uncertainties effectively. As companies continue to navigate complex economic environments, the expertise of risk analysts has become essential.

  • Various sectors, including banking, investment, insurance, and corporate finance, actively seek Financial Risk Analysts. This heightened demand is reflective of both national trends and specific regional needs within the state.

  • Growth potential in this field is favorable. As businesses expand and regulatory frameworks evolve, there is an expectation for a solid increase in job openings. Financial institutions are particularly focusing on risk management as a key area of development, resulting in numerous opportunities for professionals in this niche.

  • Geographical hotspots for Financial Risk Analyst positions in Arkansas include major cities like Little Rock and Fayetteville. Little Rock, as the state's capital, hosts numerous corporate headquarters and financial institutions, creating a robust environment for financial professionals. Fayetteville, as part of the dynamic Northwest Arkansas region, is home to several large companies that emphasize risk management.

  • Additionally, emerging fintech companies are contributing to job creation in this field. These startups are looking for skilled analysts to help them navigate the financial landscape and develop innovative financial solutions.

  • Networking events and local finance-related conferences in Arkansas can provide valuable avenues for connecting with industry professionals, increasing your chances for potential job opportunities in this growing field.

  • With the rise of technology and data analytics in finance, those who can leverage these tools are likely to find even greater demand for their services, positioning you well for a lasting career in financial risk analysis.

Top Related Careers to Financial Risk Analyst 2024

Risk Assessment Officer
Lending Risk Specialist
Loan Evaluation Officer
Credit Risk Advisor

Additional Resources To Help You Become a Financial Risk Analyst in Arkansas

  • Global Association of Risk Professionals (GARP)
    Visit the GARP website for resources, certification programs (like the Financial Risk Manager (FRM) designation), and ongoing education opportunities.
    GARP

  • Risk Management Association (RMA)
    This organization provides resources, webinars, publications, and networking opportunities specifically tailored for risk management professionals.
    RMA

  • Institute of Risk Management (IRM)
    Explore the IRM for professional qualifications and practical resources that can enhance your understanding of risk management.
    IRM

  • CFA Institute
    Review study materials, articles, and the Chartered Financial Analyst (CFA) program, which is beneficial for those pursuing careers in financial analysis and risk management.
    CFA Institute

  • Professional Risk Managers' International Association (PRMIA)
    PRMIA offers certifications, academic resources, and a global community for risk management professionals.
    PRMIA

  • Federal Reserve Bank
    Access reports and research that outline risk management strategies and economic analyses pertinent to financial institutions.
    Federal Reserve Bank

  • Investopedia
    Utilize Investopedia for articles, tutorials, and investment resources that cover risk management concepts and practices.
    Investopedia

  • Coursera & edX
    Explore online courses on financial risk management offered by top universities, allowing for flexible learning to enhance your skills.
    Coursera
    edX

  • Harvard Business Review
    Review case studies and articles focusing on risk strategies and financial management practices in various sectors.
    Harvard Business Review

  • Financial Risk Management Book Recommendations

    • "Financial Risk Management: A Practitioner's Guide to Managing Market and Credit Risk" by Steven Allen
    • "Risk Management in Finance: Six Sigma and Other Approaches" by Anthony D. H. Sherwood

These resources can provide you with valuable insights, tools, and professional connections as you advance in your career as a Financial Risk Analyst.

Frequently Asked Questions (FAQs) About Financial Risk Analyst in Arkansas

  • What is a Financial Risk Analyst?
    A Financial Risk Analyst assesses and manages potential financial risks that may affect an organization. This includes analyzing data, assessing market trends, and developing risk management strategies to minimize potential losses.

  • What qualifications do I need to become a Financial Risk Analyst?
    Typically, you will need a bachelor’s degree in finance, economics, accounting, or a related field. Many positions also require certifications such as the Financial Risk Manager (FRM) or Professional Risk Manager (PRM) designation.

  • What skills are important for a Financial Risk Analyst?
    Key skills include strong analytical abilities, proficiency in financial modeling, excellent communication skills, and a solid understanding of financial software and tools. Attention to detail and problem-solving skills are also vital.

  • What does a typical day look like for a Financial Risk Analyst?
    Your day may involve gathering and analyzing financial data, creating risk assessment models, developing reports for stakeholders, and advising management on risk-related decisions. You may also participate in meetings to discuss findings and strategies.

  • What industries employ Financial Risk Analysts?
    Financial Risk Analysts are primarily found in banking, investment firms, insurance companies, and corporate finance departments. Additionally, government agencies and regulatory bodies may also hire risk analysts.

  • What is the salary range for a Financial Risk Analyst in Arkansas?
    Salaries can vary based on experience, education, and location, but as of 2023, the average salary for Financial Risk Analysts in Arkansas ranges from $60,000 to $90,000 annually.

  • Are there advancement opportunities in this career path?
    Yes, with experience, you can advance to senior analyst roles, risk management positions, or even executive-level roles such as Chief Risk Officer (CRO). Continuing education and obtaining advanced certifications can facilitate career advancement.

  • Is continuing education important for Financial Risk Analysts?
    Yes, the financial industry is constantly evolving, and staying updated with the latest regulations, technologies, and strategies is essential. Pursuing additional certifications or advanced degrees can enhance your knowledge and career prospects.

  • What are the challenges faced by Financial Risk Analysts?
    You may encounter challenges such as managing new and emerging risks, navigating complex regulations, dealing with data inaccuracies, and effectively communicating risk assessments to stakeholders who may not have a financial background.

  • How does technology impact the role of a Financial Risk Analyst?
    Technology plays a significant role in risk analysis by providing tools for data analysis, reporting, and modeling. Familiarity with software such as Excel, SAS, or specialized risk management software can enhance your effectiveness in the role.