A Credit risk analyst as a part and parcel of the financial sector has pivotal roles to offer in guiding and maneuvering the moves of the respective clients, with regard to the trends and tides of the credit situation.
The job of a credit risk analyst involves the following perspective:
- Analysis and determination of risks.
- Preparation of reports according to the trends of the market.
- Watch and observe the situation of credit.
- Determine the extent or the limit of the loan to be extended, and guide the clients accordingly.
- Data analysis is an important aspect of his job. He is supposed to review and analyze the data and details of the respective clients.
- According to the findings of his analysis, he is supposed to advise the clients regarding the perspective of loaning.
- He is supposed to take special note of the situation of liquidity and that of profitability.
- Analyzing a specific situation in the light of the client’s credit history is one of the important facets of his responsibility.
- Collect and collate information on credit by interacting and collaborating with other institutes and financial agents.
- He is supposed to help streamline the prospect of deals and transactions of credit.
- Generate and calculate the respective ratios of credit.
A credit risk analyst needs to be quick witted and intelligent. Other than these, he is supposed to possess the following skills:
- Quick calculation
- Ability to handle software programs
- A critical thought process with a focus on logical reasoning
- Power of expression and the ability to learn, assess, evaluate and understand.
- Ability to interact with client and financial chambers for the purpose of better coordination
- Needs to be thoroughly acquainted with the ongoing trends of the financial sector.
- Ability to forewarn, as well as predict
A risk analyst may be appointed by financial institutions or groups involved in money lending. Real estate can be yet another sector involving the role of a credit risk analyst. He can also serve the purpose of a free lancer, helping out individual money lenders with their deals of transaction. His work environment may not involve physical hardship but he has to be on his toes as far as the collection of details and that of analysis are concerned. He may have to travel for the purpose of interaction and coordination. Irrespective of where he is appointed, his is a job of acute agility and mental focus.
In order to qualify for the position of a credit risk analyst, one needs to specialize in any one of the following streams. The choice needs to be embarked upon during the course of graduation
- Credit management
- Business accounting
- Diploma or degree in financial management
- Graduates with specialization in the mentioned streams are likely to be in high demand, if they follow up their financial degree/diploma with a backup support of computer skills.
Tips for the job
The success and growth of his career will depend on the success of the solutions suggested. Thus, in order to grow and improve he needs to hone his power of calculation and that of foresight.