| Headlines from the salary-related articles at web site | | | | management jobs in cities ranging from Milwaukee to |
| read, "Lucrative Times for Risk Professionals," (Apr. | | | | Houston to Boulder, CO. Risk managers are needed |
| 9, 2007), "Demand Pumps Pay in Risk Management," | | | | at hospitals, firms with trading floors, manufacturing |
| (Jan. 7, 2007), "Hefty Increases to Risk Executives," | | | | firms, and insurance firms. While managing legal and |
| (June 20, 2006), "Risk Sector View: Banks Gearing | | | | financial liability for a hospital is different from |
| and Paying Up," (Nov. 9, 2005), and "Risk Manager | | | | managing risk with a portfolio of stocks and bonds, |
| Pay Jumps 15% Year on Year," (May 9, 2005). | | | | the same basic principles apply to each job. The risk |
| Michael Woodrow, president of the risk-management | | | | manager has to characterize the probability of various |
| search firm Risk Talent Associates, predicts continued | | | | possible outcomes and assign an expected cost or |
| high demand for risk management specialists with | | | | dollar value to each outcome. |
| experienced market risk and credit risk people getting | | | | Do you have the aptitude to pursue a career in risk |
| packages of $500,000 or "much, much more." | | | | management? For the cost of enrolling in a |
| The results from a recent Risk Talent Associates | | | | 3-semester hour on-line course, students can sample |
| compensation survey are as follows. "For risk | | | | the work of a risk manager and decide if they like it. |
| management analysts or associates, average total | | | | Charter Oak State College now offers the course |
| compensation in the U.S. grew from $111,000 in 2005 | | | | "BUS 341: Risk Management and Insurance," which |
| to $121,000 in 2006. For senior associates or | | | | can be used toward the upper level requirement in |
| managers, compensation rose $150,000 to $166,000. | | | | the Business Administration, Health Care |
| Vice presidents saw their compensation rise from | | | | Administration, Organizational Leadership, and |
| $242,000 in 2005 to $264,000 in 2006. Senior vice | | | | Organizational Management concentrations. The |
| presidents garnered $420,000 in 2005 versus | | | | course emphasizes quantitative techniques used to |
| $462,000 in 2006, while managing directors' | | | | form judgments on risk exposure. Students work on |
| compensation rose from $900,000 in 2005 to | | | | calculating expected values and variance of payments |
| $984,000 in 2006. Finally, chief risk officers earned | | | | for skewed distribution of outcomes (not the simple |
| $928,000 in 2005, but broke $1 million in 2006," | | | | bell-shaped curves you may have seen in a business |
| according to the survey. | | | | statistics course). Insurance pooling arrangements, |
| Outside of Wall Street and the financial sector, risk | | | | techniques to limit exposure, and liability-driven |
| management salaries are not nearly so lofty, yet risk | | | | approaches to asset management are analyzed. In |
| management can be a lucrative career option for | | | | just 8 weeks, you can have a broad introduction to |
| today's graduates in any part of the country. In June | | | | risk management and learn if you want to pursue a |
| 207, Web site listed 234 finance-based risk | | | | career in this exciting field. |