Overview
A credit risk graduate career comprises one of the broadest areas of the financial and banking sector; there is a significant array of inter-related disciplines within it. Credit risk can be arbitrarily described as the “risk of a loss if a counterparty fails to meet its obligations”. Credit issues within businesses can arise from declining portfolios or declining credit quality. The current economic climate has facilitated an increasing number of graduate jobs within credit risk management and analysis. In the last 10 years, graduate jobs available in the financial sector generally increased by 37%.
There are many areas of risk management. The opportunities within it are some of the most diverse for any graduate jobs. Some of the largest employers in the sector include JP Morgan, Credit Suisse, Barclays, Morgan Stanley and Goldman Sachs. The range of clients to work with is exhaustive.
Credit Risk jobs can be some of the most responsible within large businesses and form a critical part of the business as a whole. Taking responsibility for key financial decisions and the risk associated with them is of vital importance to the successful development of a company. When risk is miscalculated it can lead to serious financial turmoil on the largest of scales, such as the subprime mortgage crisis of 2007-9. Mitigating such occurrences can be intrinsic within a credit and risk management career.
Average Credit Risk Graduate Salary
Credit Risk Graduate Career Path
Defining credit risk as an individual entity is difficult; it encompasses many inter-related financial disciplines. Therefore, the career opportunities for credit risk are wide and diverse. The discipline boasts some of the highest paid graduate jobs in the market. After training, working in credit risk as a professional has great potential for career development.
The career flexibility within the field is significant. There are many different divisions within a range of companies geared towards different types of risk management and credit analysis to suit client and business needs. Fast-moving consumer goods (FMCG) companies such as Unilever, Nestlé and GlaxoSmithKline all have departments dedicated towards credit and risk management. Property and real estate businesses are also among those who have specific credit risk management divisions. The diversity of businesses within credit risk allows great potential for high earnings and promotion. There are jobs offering high earnings within all areas of the sector, with the step-up to executive roles in only a few years as a possibility.
From the beginning of a credit risk graduate career, you are likely to be immersed with senior management figures, in an environment of fast development and entrepreneurialism. Not only will this be deeply beneficial for your career, but also be fulfilling for those who are interested in career progression and the field in general. In addition to there being exceptional graduate roles within the credit risk field, having completed training in a graduate role, the skills you will possess will be versatile and highly sought after within the entire financial sector. These can be applied within related fields such as business management and consultancy.
Qualifications and Skills Needed
What proportion of candidates as a percent we place into Credit Risk graduate careers and the typical qualities graduate employers look for.
GRB Placements for Credit Risk by Degree
Typical Candidate Attributes
The degree programmes for Credit Risk need to be numerical, statistical or have a scientific underpinning such as Mathematics, Economics, Physics and Engineering. Within certain areas of Credit Risk, degrees usually require some level of data driven / modelling experience within them, though this is not always the case. A 2:1 in the degree programmes stipulated is also typically a minimum requirement. There should also be an appreciation of business problems, with some level of commercial awareness.
Exposure to different statistical and analytical packages is also desirable for graduate roles.
Examples of these include:
- R
- MATLAB
- STATA
- SAS
- Python
In addition to these specific requirements, there are many basic skills which are of intrinsic importance for success in this sector.
These include:
- Sound analytical skills and problem solving capability
- An appreciation of business and finance in general
- The ability to convey complex ideas in a clear and concise way
If you feel that you possess the necessary skills to succeed in Credit Risk, with experience and an appreciation of what the sector requires and a relevant degree programme, apply for Credit Risk Graduate Jobs today.
Sources for Further Information
The Chartered Institute of Credit Management www.cicm.com
The Institute of Risk Management www.theirm.org
The CFA Investment Institute www.cfainstitute.org