The Risk Management and Insurance (RMI) major explores the identification of potential exposures to loss, measurement, and analysis of those loss exposures, methods for handling those loss exposures (methods in addition to insurance), the implementation of the risk management plan and the review and analysis of the risk management process. RMI also explores financial planning which involves identifying personal financial objectives and developing financial plans to meet those financial objectives.
Risk Manager: Risk management personnel may work with insurance, securities, investments, and other financial vehicles.
Risk Specialist: This job has many of the same duties as a risk manager but usually specializes in a specific area of risk management, such as real estate risk management or healthcare risk management.
Actuary: An actuary is a statistician specifically trained in risk management. Job duties may include analyzing data to quantify risk. More than 60 percent of actuaries work for insurance companies.
2. Job Satisfaction
According to Property/Casualty 360, more than 90 percent of insurance professionals between 19 and 35 years of age say that insurance careers meet important criteria essential for job satisfaction, including work/life balance, career development opportunities, and financial stability.
3. Growth Prospects
The insurance industry is facing a significant loss of personnel. A McKinsey & Company study suggests that 25 percent of insurance industry professionals will retire by the end of 2018. This will provide ample career opportunities for graduates. McKiney & Company is an American worldwide management consulting firm. It conducts qualitative and quantitative analysis to evaluate management decisions across public and private sectors.
4. Financial Rewards
The average Top Risk Management Executive salary in the United States is $192,723 as of September 01, 2018, but the range typically falls between $160,949 and $245,526. The average for risk management, in general, is much lower at $50,061, according to Glassdoor. Another prominent online employment and data site, Payscale, reports the median income at $61K.
5. Career Choices
RMI majors are usually part of a school’s business program. During your studies, you have probably taken several business classes that will benefit you if you pursue a different career path.
A degree in RMI creates opportunities to work in financial services, manufacturing, banking, and various levels of government. Most businesses have financial, credit, liquidity, and liability risks, whereas safety, operational, and workforce risks are more common in manufacturing companies.
Regarding compensation, Freddie Mac (Federal Home Loan Mortgage Corporation) paid over $118,000 to managers in this field as of 2018, while Credit Suisse compensates managers an average of about $130,000 annually.
6. Places to Work
There are risk and insurance opportunities everywhere. You can work in major cities, such as Detroit, Chicago, New York City, San Francisco, or Seattle. You can also find opportunities overseas in places like London, Tokyo, and Zurich. Work in a metropolis or small town. Discover Financial Services, for example, has their headquarters in Riverwoods, Illinois. The population is less than four thousand.
There are more than 30 scholarships totaling over $50,000 in tuition assistance listed on the Ferris State University RMI website alone. This is not an exhaustive list by any means.
8. Complements the Analytical Mind
Risk analysts and risk managers identify and analyze potential risks. Subsequently, they work with others both inside and outside of their organization to treat the risks. Risk treatment may include creative approaches to control, prevent, and reduce the losses that can result from various risks. The approaches may or may not include risk transfer arrangements such as insurance.
Underwriters spend their time evaluating insurance applications, analyzing the risks that their insurance company may need to assume, determining an appropriate scope of coverage and price, and building relationships with their agency partners.
9. Jobs for the Introvert
This is a sub-section of #9. Introverted personality types can be Analytical Thinkers. You prefer to work alone, away from the superficial chatter of the people around you. You are open to and interested in new information. These are the personality traits of the analytical thinker, according to iPersonic. iPersonic is a renowned personality system available in 26 languages and used by millions of people in more than 130 countries.
Many jobs in risk analysis allow you to work individually or as a team. However, eventually, you may have to present your analysis to management or other senior personnel. At least, you may have the constant barrage of telephone calls, meetings, and other co-worker interaction. Your job research should provide a job placement that suits your personality to work with autonomy and relative anonymity.
Depending on your college/university of choice, an RMI program may afford the opportunity to apply knowledge learned in the classroom to real-world situations. This is one of the primary objectives of internships. Students work for a risk/insurance organization where they engage in business activities, projects, and challenges. Student interns are able to gain professional experience, make valuable network connections, and usually receive wages for their effort – all while cementing and enhancing their understanding of the concepts they first learned in the classroom. In fact, internships often lead to permanent employment offers upon graduation.