What are the Career Options for a Credit Risk Analyst?

If you’re a credit risk analyst or are considering pursuing a career as a credit risk analyst, you may wonder what your career options are. The good news is that you have lots of options. There are many different positions within the field of credit risk analysis, but there are also plenty of related jobs in other areas of finance.

What is a Credit Risk Analyst?

Before looking at the career options for a credit risk analyst, it helps to understand what the job entails. A credit risk analyst is a type of financial analyst that specializes in loans and credit. Analysts review the financial statements and credit history of both individuals and businesses to evaluate their creditworthiness. Credit risk analysts may provide reports that others use to decide whether to accept or deny a loan application, or they may be personally responsible for accepting or rejecting loan applications.

Career Options as a Credit Risk Analyst

Most credit risk analysts start as junior analysts. After gaining a few years of experience, those that excel may have the opportunity to move up and become senior analysts. Senior analysts often deal with more complex problems and may oversee other analysts. Those who move beyond senior analyst positions may go on to become financial managers, who oversee an entire department of analysts. Credit risk analysts are needed throughout finance. A credit risk analyst may work for a bank, investment company, credit rating agency, credit card company, or other organization.

Career Options Beyond Credit Risk Analysis

The skills and knowledge required for a career as a credit risk analyst can also transfer over to other roles in finance. Two of the best opportunities for credit risk analysts looking to explore other options are a financial manager and personal financial adviser. Here’s what each of these two careers looks like and how it connects to credit risk analysis.

Financial Manager – these positions use many of the same skills that credit risk analysis does but applies them to financial matters beyond credit and loans. A financial manager handles all aspects of an organization’s finances. This includes credit risk, as well as investments and areas for financial improvement.

Financial Adviser – these positions involve working with individuals to help them manage their finances. Since credit and risk is a large part of most individual’s financial plan, credit risk analysts can use many of their existing skills and knowledge in these roles. But they must also be knowledgeable on taxes, investments, insurance, and retirement. Positions as a financial adviser focus a bit less on data and more on building relationships with clients

Educational Requirements

A career in credit analysis requires a bachelor’s degree ideally in economics or a related field, such as finance, statistics, or accounting. A master’s degree is not required for more entry-level positions, but many more senior positions do require a master’s. No specific certification is required to get a job in credit analysis, but if you’re looking to increase your career options, there are two certification possibilities: the Credit Risk Certification (CRC) and the Certified Mortgage Banker (CMB).

Credit Risk Certification (CRC) – Since this certification is for anyone working in credit and lending, it could be beneficial for many credit analysts. The only caveat is that it is not for entry-level positions since you must have five or more years of experience. The test to receive the certification is completed on a computer. The 126-question test typically takes about five hours to complete. To maintain the certification, you must renew it every three years and complete 45 continuing education units.

Certified Mortgage Banker (CMB) – This certification is specifically for credit risk analysts working in real estate. It is, therefore, more specialized than the CRC. As the name implies, the CMB focuses on mortgage lending. The test for the CMB is two-part. The first part is an hour-long oral exam and the second part is a six-hour-long written exam.

Credit Risk Analyst Compensation

Credit risk analyst positions can be fairly lucrative. The average annual compensation for a credit risk analyst is about $82,000. Since credit risk analysis includes so many different positions, it’s helpful to keep in mind that this number is an average. Some positions will pay more, while some will pay less.

Should You Pursue a Career as a Credit Risk Analyst?

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.

Credit and Credit Risk Analysis Professional Certification

The course helps students gain a solid grounding in credit risk fundamentals with the tools and techniques required to perform a credit analysis – utilizing analytical tools to project future performance.

About The New York Institute of Finance

 The New York Institute of Finance (NYIF) is a global leader in professional training for financial services and related industries. NYIF courses cover everything from investment banking, asset pricing, insurance and market structure to financial modeling, treasury operations, and accounting. The New York Institute of Finance has a faculty of industry leaders and offers a range of program delivery options, including self-study, online courses, and in-person classes. Founded by the New York Stock Exchange in 1922, NYIF has trained over 250,000 professionals online and in-class, in over 120 countries.

See all of NYIF’s training and qualifications here.