Credit Risk Officer Job DescriptionJob Descriptions February 8, 2014
According to the 2010 SOC, from the U.S. Bureau of Labor Statistics, a credit risk analyst is one who is responsible for the analysis of certain credit data and personal review of financial statements, of individuals and business structures, to determine the level of risk involved with extending fixed, revolving credit, or lending predetermined sums of money. They are charged with preparing reports and compiling documents involved in making a decision. A credit risk officer falls under the broader category of financial specialist.
A candidate for this position can expect a median salary of $64,350, according to the 2010-2020 U.S. Bureau of Labor Statistics. An entry level position, as a credit risk officer, would require a minimum of a bachelor’s degree in the area of specialty. For an advanced position in the field, a master’s degree would be required.
An individual in the position of credit risk officer may also provide analysis and evaluation, in regards to the overall credit risk of a financial institution. They are charged with the goal of maximizing profit while minimizing credit loss or risk. This individual must be familiar with procedures, practices and concepts within the financial field.
A qualified candidate will be required to rely on practiced experience and superior judgment, to plan and accomplish goals. They will perform multiple activities and industry-specific tasks. A degree of creativity and latitude is needed for this position. The individual in this position will work under the general supervision of a financial operations manager, and report to an executive level manager.
The job outlook for 2010-2020, according to the US Bureau of Labor Statistics, is 23% faster than average. There were 236,000 jobs in this field, in 2010. The employment change, expected within the period 2010-2020, is 54,200.
In addition, this individual will be required to keep current in developments within the academic community while keeping track of the regulatory environment, current risk assessment technologies and the financial services industry, in order to provide expert guidance to their firm.
They will be required to expand their understanding of an unexplored field and adapt to and, if necessary, perform model validations of specialized models. A prime responsibility will be the support of regulatory examiners and the performance of internal audits, of the process and specialized components of utilized models.
A superior candidate will be able to perform model-specific validation and confirm the expectation of expert judgment on qualitative factors that augment certain quantitative models. They will be charged with reviewing to confirm that adequate controls and proper documentation are in place. In addition, they will review the underlying assumption, theory, empirical evidence, implementation and limitations of the model and evaluate the model’s performance with standard back testing and benchmarking techniques.