An Overview Of The Role

Credit Risk Analyst

An Overview of the Role

Credit risk analysts are responsible for assessing the creditworthiness of individuals or firms. They use financial data and credit history to determine the level of risk involved in lending money. The research that a credit risk analyst conducts ultimately leads to the determination of whether or not to extend credit.

What Does a Credit Risk Analyst Do?

Credit analysts assess the credit data and financial statements of individuals or firms to determine any and all potential risk involved. One of the roles of a credit analyst is to evaluate the credit risk of a customer by looking at their savings information, debt repaying history, earnings from business or employment, and assets. Credit analysts may also be responsible for developing and implementing credit policies and procedures.

How to Become a Credit Risk Analyst

To become a credit risk analyst, you will typically need a bachelor's degree in finance, accounting, or a related field. You will also need to have strong analytical and problem-solving skills. Many credit risk analysts also have a certification from the Credit Risk Management Association (CRMA).

Typical Day for a Credit Risk Analyst

A typical day for a credit risk analyst may include:

• Analyzing financial data
• Meeting with clients
• Developing and implementing credit policies and procedures
• Monitoring and managing credit risk
• Writing reports

Compensation

Credit risk analysts earn a median salary of $66,840 per year. The top 10% of earners make more than $124,640 per year.

Conclusion

Credit risk analysts play an important role in the lending and credit departments of investment companies, commercial and investment banking credit. They use their skills to assess the creditworthiness of individuals or firms and determine the level of risk involved in lending money. If you are interested in a career in finance, becoming a credit risk analyst may be a good option for you.