Risk managers identify, analyze, and mitigate risks to help their employer improve profitability and meet performance goals. At private equity firms, much of a risk manager’s focus is on two key financial parameters: the probability of losing capital and the uncertainty of returns. Risk managers are also known as risk officers and chief risk officers.
Minimum Education Level
Risk managers earned median annual salaries of $111,765 in 2020, according to Salary.com. Earnings ranged from $83,348 to $142,656 or more. They usually receive benefits such as paid vacation, health and life insurance, pensions, and stock options.
Risk managers work in comfortable office settings. Some travel to portfolio companies to complete risk management assessments. Many private equity and venture capital professionals work extremely long hours (in some cases 70 hours a week or more).
The U.S. Department of Labor (DOL) classifies risk managers under the general category of “financial managers.” It predicts that employment for financial managers, including those who work for firms that manage funds, trusts, and other financial vehicles, will grow by 16 percent (much faster than average) through 2028. “Services provided by financial managers, such as planning, directing, and c...