Risk Manager

The goal of a risk manager is to make sure an organisation understands what it is exposed to and has a plan to deal with it. Financial institutions are required by regulators to hold enough capital to absorb potential losses, and risk managers play a central role in calculating and reporting those requirements.

Most of the daily work involves measuring risk using quantitative models, monitoring whether risk levels stay within approved limits, and reporting findings to management or regulators. You also review new products or transactions to assess whether they introduce risks that need to be managed. When something unexpected happens in the market, risk managers are responsible for assessing the impact quickly.

The main tools are Python or R for modelling, SQL for data extraction, and Excel for reporting. Knowledge of financial products is important, as is familiarity with regulatory frameworks like Basel IV for banks or Solvency II for insurers. In the Netherlands, De Nederlandsche Bank supervises financial institutions and sets the standards that risk managers work within.

The role sits between quantitative modelling and compliance. It connects closely to the Actuary role, which focuses on insurance-specific risks, and to the Quantitative Analyst role, which focuses more on model development. Risk managers at larger institutions often specialise in one risk type, such as credit risk, market risk, or operational risk.