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How to Become a Credit Risk Officer

Career News June 9, 2014

If you take orders well, and have the capacity to think independently and set an example in team performance, then the credit risk officer may be just the career for you.

A credit risk officer is a professional designated to evaluate an applicant’s risk and determine whether the loan goes through while following the guidelines set forth by the credit risk analyst. The credit risk officer’s work is to help the credit risk analyst and department team avoid losses by rejecting loans that are likely to go into default. Even in the event that the loan is made, credit risk will determine the amount of the loan given.

Although this is a supportive role, these professionals can earn upwards of $60,000 per year, at least according to averages compiled by Certified Compensation Professionals.

Education and Work Experience Needed

A bachelor’s degree is the best educational pursuit for you in advance of on-the-job training. Working as a credit officer, you will assist your team by providing review and evaluation of each loan, taking into account what the team leader says. This requires a formal education in finance and credit. Work experience is also worth pursuing, as you can build a strong resume by only working in a related field for a few years (usually not beyond three).

The primary reason for these requirements is that officers are expected to retain a good sense of operations, how activities are handled on a daily basis, how to serve borrowers best and follow the lead of management. This professional setting teaches a new applicant about company culture, how to accomplish goals, and standards of the industry. Although the officer does work under a supervisor’s direction, he or she will show promising creativity and open-mindedness, especially when negotiating with applicants.

The Job

Although you are starting under management, you still have hefty responsibilities. These include credit risk reporting, interacting with superiors, and reviewing strategic positions along with your manager. As a team, you will assess changes, report credit limit excesses, make sure all systems are up to date, report all significant risks, and learn how to conduct stress and scenario testing of your portfolio. It is the work of your department to understand business risk, default, and what makes the business change.

To some extent, you will be relying on credit reports and applicant information to make a decision. Some decisions will be easy based on credit history, uncertain financial information and other critical issues. Others will need careful market evaluation since the details and variables need reconciliation.

This is a career field that pays well, and that is an important part of modern business. You will protect your company’s assets, but you will also make the dreams of borrowers come true, giving them the resources they need to finish the mission. It is a challenging assignment but one with many benefits.

Talk to UMCP or any schools listed below about your training and determine if you’re going to move up in the business world!

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1 Program(s) Found
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  • Ranked among top Regional Universities in the South by U.S. News and World Report in 2015.
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  • Stands as the largest private, nonprofit university in the nation with 100,000+ students.
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  • Has a student-faculty ratio of 25:1, and 42.3% of its classes have fewer than 20 students.
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Good for Working Adults
  • Accredited
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Searching Searching ...

Matching School Ads
1 Program(s) Found
  • Available business concentrations include Accounting, Economics, General Management, Marketing, and Human Resource Management.
  • Ranked among the Best Online MBA and Online Graduate Business Programs in 2016 by U.S. News & World Report.
  • Programmatic accreditation provided by the Accreditation Council for Business Schools and Programs (ACBSP).
  • Regionally accredited by the Southern Association of Colleges and Schools Commission on Colleges (SACSCOC).
  • Online Courses
5 Program(s) Found
  • Average class size is 25, allowing for more one-on-one time with instructors.
  • Has a 97% employment rate among available graduates.
  • All  graduates receive Lifetime Employment  Assistance—free and forever.
  • Michigan's largest independent college.
  • Most instructors are working professionals in the fields they teach.
  • Programs are continuously updated to ensure classes are career-relevant and in sync with what's needed in the industry
Show more [+]
Good for Working Adults
  • Accredited
  • Online Courses
  • Flexible Scheduling
  • Accelerated Programs
  • Financial Aid
  • Transferable Credits
5 Program(s) Found
  • Ranked among top Regional Universities in the South by U.S. News and World Report in 2015.
  • Ranked 37th among the Best Colleges for Veterans by U.S. News and World Report in 2015.
  • Stands as the largest private, nonprofit university in the nation with 100,000+ students.
  • Offers over 230 programs online, from the certificate to the doctoral level.
  • Has a student-faculty ratio of 25:1, and 42.3% of its classes have fewer than 20 students.
Show more [+]
  • Accredited
  • Online Courses
  • Financial Aid
  • Transferable Credits
1 Program(s) Found
  • Campus-based and online business programs include Entertainment Business (BS), Internet Marketing (BS), and Business Intelligence (MS)
  • Students will explore business concepts like marketing, global media management, and business technology and design
  • Courses designed to prepare students for a career in business and Career Development advisors available to all alumni
  • Full Sail offers accelerated programs, so a degree that would normally take four years takes 24 months on average
  • Online Courses

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