Investment risk offers a unique blend of analytical challenge and strategic influence, making this an exciting career path within the investment management industry.
To help you better understand the skills and requirements of an investment risk role, we asked Ben Graetzer, Senior Manager of Portfolio Risk at Victoria Funds Management Corporation (VFMC), to share his insights and recommendations. You'll also find plenty of information below about the skills required and how to acquire them.
What is Investment Risk?
Investment risk professionals are responsible for identifying, assessing, and managing the risks associated with investment portfolios. They play a crucial role in ensuring that the investments align with the risk tolerance and financial goals of the clients or institution they serve. This involves analysing market trends, evaluating the impact of potential risks, and working closely with portfolio managers to adjust strategies as needed.
Key skills required and developed
- Analytical skills: Strong analytical abilities are crucial as you assess complex data and financial models to identify potential risks, and make informed decisions that balance risk and reward.
- Quantitative analysis: Proficiency in quantitative methods is essential. You'll use statistical tools and financial models to evaluate risk factors and predict potential outcomes.
- Attention to detail: Investment risk requires a meticulous approach to identify even the smallest risk that could impact a portfolio's performance.
- Problem-solving: You’ll hone your problem-solving skills by devising strategies to mitigate risks, ensuring portfolios remain resilient in volatile markets.
- Communication skills: Clear and effective communication is key to influencing decisions, and articulating strategies to clients and stakeholders.
How to upskill and learn more
- **Ben's #1 tip** Stay informed: Keep up with the latest trends and best practices in investment risk by exploring resources like Savvy Investor. This platform offers a wealth of information on investment risk and broader topics in funds management. Check out more resources here.
- Pursue relevant education: Consider advancing your education with certifications like CFA (Chartered Financial Analyst) or FRM (Financial Risk Management), or even a Master’s in Financial Mathematics. These qualifications are highly regarded and will equip you with the technical knowledge needed for a successful career in investment risk.
- Hands-on experience: Start your own portfolio and focus on the risk profiles of your investments, or get involved in investing clubs or investment competitions that provide more opportunities to learn.
- Build your network: Networking is invaluable in the investment industry. Reach out to professionals like Ben Graetzer and ask questions or advice on ways to pursue this career path.
Embarking on a career in investment risk can open doors to numerous opportunities within investment management. By developing the right skills, staying informed, and building a strong network, you can position yourself for a successful and impactful career in this exciting field.
If you have any further questions, reach out anytime for a chat.
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