What is a day in the life of a credit risk analyst?
A day in the life of a Credit Analyst involves doing research about people or businesses applying for a loan. This may include talking to employers to verify income and other sources of financial verification.
Credit Risk Analysts 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.
On a day-to-day basis, risk analysts spend their time:
Predicting and determining the likely outcome of a business decision. Preparing reports on findings and making recommendations. Using analytics software and tools to calculate huge sums of data. Consulting with stakeholders and informing leadership of findings.
Dealing with multiple projects with short deadlines can be a stressful event for most analysts, and they must find proper ways of managing work stress without stretching their limits or compromising the quality of work.
Credit analyst work environment
Credit analysts generally work in a relatively fast-paced office setting with a standard 40-hour workweek. They use financial software programs daily to evaluate applicants' financial health.
As of Feb 5, 2024, the average annual pay for a Credit Risk Analyst in the United States is $113,881 a year. Just in case you need a simple salary calculator, that works out to be approximately $54.75 an hour. This is the equivalent of $2,190/week or $9,490/month.
The typical routine of a credit analyst includes reviewing financial statements, management accounts, asset inventories, financial data updates, as well as the past credit repayment history provided in the credit report.
A position as a credit risk analyst allows you to gain experience in a more focused area of finance, while still providing skills and experience that are applicable in many other positions. For those looking to pursue a challenging and lucrative career, credit risk analysis can be a great option.
If there is a difference, a credit analyst would examine individual credits and the risk analyst would be responsible for the entire risk portfolio.
How Much Do Risk Analyst Jobs Pay per Year? $62,000 is the 25th percentile. Salaries below this are outliers. $102,500 is the 75th percentile.
What is the salary of credit risk analyst in JP Morgan?
Average JP Morgan Chase Credit Risk Analyst salary in India is ₹18.3 Lakhs for less than 1 year of experience to 6 years. Credit Risk Analyst salary at JP Morgan Chase India ranges between ₹8.0 Lakhs to ₹32.0 Lakhs. According to our estimates it is 58% more than the average Credit Risk Analyst Salary in India.
The projected credit analyst job growth rate is -5% from 2018-2028. About -77,200 new jobs for credit analysts are projected over the next decade. Credit analyst salaries have increased 7% for credit analysts in the last 5 years.
Most credit risk analysts start in the field by working in junior analytical positions after earning their undergraduate degrees. Some positions deal predominantly with consumer credit evaluation and may be suited to candidates who have associate degrees and relevant experience.
Life as a risk analyst can be challenging, as risk management is filled with inherently difficult decisions, and risk-related data does not always entail straightforward solutions. Nevertheless, this career offers the opportunity to make a direct impact on an organization's success.
Because the success of the client or company is often directly tied to the performance of a financial analyst, it's very common for this base pay to be supplemented with bonuses or profit-sharing that is contingent on financial growth.
An associate or a bachelor's degree is required for entry-level positions, while significant relevant work experience may be required for placement into senior positions in the credit department. Most companies offer on-the-job training for entry-level positions to make the transition easy for recent graduates.
$102K (Median Total Pay)
The estimated total pay range for a Credit Risk Analyst at J.P. Morgan is $81K–$129K per year, which includes base salary and additional pay. The average Credit Risk Analyst base salary at J.P. Morgan is $90K per year.
Average Blackrock Risk Analyst salary in India is ₹12.6 Lakhs for less than 1 year of experience to 3 years. Risk Analyst salary at Blackrock India ranges between ₹6.0 Lakhs to ₹22.0 Lakhs. According to our estimates it is 72% more than the average Risk Analyst Salary in India.
Most lenders use the five Cs—character, capacity, capital, collateral, and conditions—when analyzing individual or business credit applications.
Credit analysts tend to be predominantly conventional individuals, meaning that they are usually detail-oriented and organized, and like working in a structured environment. They also tend to be enterprising, which means that they are usually quite natural leaders who thrive at influencing and persuading others.
Is credit risk middle office?
Market and credit risk are among the best “middle office” roles, especially since you can potentially move into sales & trading from them.
Earn an undergraduate degree
While some credit risk analysts succeed in securing this role without a degree, most credit risk analysts today have at least an undergraduate degree in finance, economics, mathematics, accounting, business or a related subject.
The estimated take home salary of a Credit Risk Analyst at Morgan Stanley ranges between ₹93,236 per month to ₹95,738 per month in India.
A credit risk analyst determines how creditworthy someone is based on their credit history. The research that a credit risk analyst conducts ultimately leads to the decision of whether a lender should issue a loan to an applicant. Credit risk analysts may also review and rate investments.
The role of a credit risk analyst allows me to pursue my passion for resolving crises using my knowledge. As a credit risk expert, I intend to help businesses and customers realise their potential, and invest in the right projects by reducing their risks.
